TRAVIS COUNTY, Texas — Real estate developer Nate Paul reached a plea deal on Wednesday in his federal fraud case. Paul pleaded guilty on one count of making false statements to a financial institution and he faces up to six months in prison. All other charges against Paul will be dropped.
Paul, a close associate of Texas Attorney General Ken Paxton, faced several criminal charges of financial crimes in June 2023 before multiple wire fraud charges were added later that year.
The charges stemmed from years of investigating Paul for making false statements to secure loans in 2017 and 2018. At the time, investigators said Paul made false statements and reports to banks that loaned him more than $170 million.
Paul pleaded not guilty to the eight charges of falsifying documents, which carried a maximum penalty of up to 30 years in prison and a fine of $1 million.
Forbes magazine featured Paul and his business in 2017 as a “Texas Tycoon,” building his real estate empire across 17 states. The FBI would raid Paul’s Austin home and downtown Austin businesses two years after the feature.
Most notably, Paul was known for his involvement with Paxton after a whistleblower lawsuit accused him of helping Paul gain access to documents related to the FBI’s raid. When Paul had nine properties foreclosed upon in 2021, whistleblowers said Paxton ordered a written opinion at 2 a.m. saying the foreclosures had to be suspended under pandemic safety rules.
Whistleblowers said Paul donated $25,000 to Paxton’s campaign in return, which Paxton then used to remodel his home and employ his mistress. Paxton would later be impeached by the Texas House and acquitted on all 16 articles of impeachment.
Paul’s previous legal issues
In November 2024, a civil case forced Paul to serve 10 days in jail on criminal contempt charges.
Paul was sentenced in March 2023 after he was accused of defrauding an Austin-based nonprofit. However, Paul appealed the punishment, claiming there was not enough evidence to support his conviction.
The Texas Supreme Court eventually rejected a request to overturn the sentence.