AUSTIN, Texas (AP) — A real estate developer, whose relationship with Texas Attorney General Ken Paxton was at the center of the Republican’s historic impeachment trial in 2023 and a recently-ended federal corruption investigation, was sentenced Wednesday to five years' supervised release and fined $1 million for lying to a financial institution.
Nate Paul, 38, was also ordered by U.S. District Judge David Ezra to serve four months' home confinement at night, but he is allowed to leave for work and other appointments during the day. Paul had faced up to six months in prison under a previous plea agreement.
Paul’s attorney, Gerry Morris, did not immediately respond to emails requesting comment. A spokesman for the U.S. Attorney's Office for the Western District of Texas declined comment.
Paul was accused by federal prosecutors of overstating his assets and understating his liabilities while seeking loans in 2017 and 2018.
Paul had claimed that federal investigators acted improperly when they raided his Austin home in 2019. He later sought help from Paxton, and the relationship and dealings between the two men played a prominent role in state lawmakers impeaching Paxton, who was later acquitted in the Senate.
Paxton has long denied wrongdoing and was not mentioned in federal indictments against Paul.
A close ally of President Donald Trump, Paxton is now running for U.S. Senate in the Republican primary against Sen. John Cornyn.
A separate federal criminal investigation of Paxton over his relationship and dealings with Paul was quietly ended by President Joe Biden's administration in late 2024 with no charges. Paxton has called that investigation a “bogus witch hunt.”
Earlier this month, a state district judge awarded more than $6 million to four former Paxton aides who were fired in retaliation for reporting allegations that he was using his office to accept bribes from Paul.
Jim Vertuno, The Associated Press
