Austin, TX
Nate Paul charged with 8 felony counts of making false statements to financial institutions
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Nate Paul, the Austin real estate investor central to allegations of illegal conduct by suspended Attorney General Ken Paxton, has been charged with eight counts of making false statements to financial institutions.
Paul, 36, allegedly overstated his assets and understated his liabilities to fraudulently obtain loans, according to a 23-page indictment filed by federal prosecutors Friday.
The government is seeking $172 million in restitution from Paul.
U.S. Magistrate Judge Dustin Howell laid out the charges — which focus on actions Paul took in 2017 and 2018 to allegedly mislead mortgage lenders and credit unions — Friday morning to ensure Paul understood them.
Paxton was not mentioned in the indictment, nor was he discussed during a half-hour proceeding Friday in Austin’s federal courthouse, where Paul appeared shackled and wearing a blue button-down shirt, jeans and white Air Jordans. He answered Howell’s questions softly, simply stating, “Yes, Your Honor.”
Paul is due back in court June 15 for arraignment. He will be released today on conditions including that he surrender his passport and leave Texas only after notifying the court. His in-state travel will be unrestricted. Assistant U.S. Attorney Alan Buie, who represented the government at the hearing and who specializes in white-collar crimes, said Paul should be allowed to continue to run his businesses.
One allegation against Paul has ties to impeachment
Paul’s lawyer, Gerry Morris, said outside the courtroom that the charges have nothing to do with Paxton, adding that he had “no idea” when Paul last spoke with the attorney general.
Paxton was suspended from office after he was impeached by the Texas House last month for allegedly misusing the power of his office to help Paul, among other allegations of misconduct.
“The charges against Paul evidently have nothing to do with Attorney General Ken Paxton. Nothing whatsoever,” Paxton’s lawyer, Tony Buzbee, said in a statement. “That should speak volumes as to how weak this impeachment effort is.”
The Texas Tribune has established that Count 7 of the indictment refers to a $2.73 million loan that Amplify Credit Union extended to WC Alamo Industrial Center, owned by Paul, in 2018. The count alleges that Paul lied on financial records to obtain the loan.
Amplify has ties to the Paxton impeachment because it was among 39 businesses and individuals that received grand jury subpoenas to provide documents and information to Brandon Cammack, a Houston lawyer hired by the attorney general’s office — at Paxton’s insistence — to investigate on Paul’s behalf, according to a House committee examination that led to Paxton’s impeachment last month.
Paul had referred Cammack to Paxton for the job in 2020, the House investigators said.
Later, other attorney general officials asked a state district judge in Travis County to quash the subpoenas, saying they were improperly obtained because Cammack misrepresented himself as a special prosecutor for the attorney general’s office — he was not — and did not have the authority to appear before a grand jury or issue grand jury subpoenas, court records show.
According to a lawsuit by former officials in Paxton’s agency, Cammack had obtained the subpoenas “under false pretenses to investigate, harass, and intimidate Nate Paul’s perceived adversaries.”
Paxton’s involvement with Cammack was among the allegations contained in the articles of impeachment that accused Paxton of misusing his official powers to help Paul, his friend and political donor.
Paul allegedly misstated his finances
In the indictment unsealed Friday, prosecutors allege that Paul repeatedly misstated his financial situation to obtain loans from credit unions and mortgage lenders in New York, Connecticut and Ireland.
“On three occasions, Paul gave a financial institution a false and counterfeit document, representing that one of Paul’s bank accounts held millions of dollars when in fact the balance of the account was less than $13,000,” the indictment stated.
In another instance, prosecutors alleged, Paul told a lender he owned 100% of a company that was to receive a loan, but another firm that was not affiliated with Paul owned 91% of the company.
In a third case, Paul told a lender that his total liabilities were $3.4 million when they exceeded $28 million. “Therefore, Paul knowingly made a false statement and report when he said that the amount of his total liabilities was only $3,422,056,” the indictment said.
Paul was arrested by the FBI and booked Thursday afternoon into the Travis County Jail on a federal warrant, but the nature of the charges against were not initially disclosed. He is represented by Morris, a 40-year Austin defense attorney and past president of the National Association of Criminal Defense Lawyers and the Texas Criminal Defense Lawyers Association.
Paul is a central figure in the abuse-of-office and bribery allegations made against Paxton by former high-ranking officials, all of whom were subsequently fired or resigned from the attorney general’s office after taking their concerns to the FBI in 2020. Their accusations — focusing on help Paxton gave Paul after the real estate investor’s Austin home and businesses were searched by federal law enforcement — prompted an FBI investigation and formed the lion’s share of 20 articles of impeachment against Paxton that the Texas House adopted last month.
Paxton is currently suspended from his official duties and awaiting an impeachment trial in the Senate, where a two-thirds vote would permanently remove him from office. A specially appointed panel of senators will present rules of procedure for the trial to the full Senate on June 20, according to a resolution that set the trial to begin no later than Aug. 28.
Paul, once considered a major player in the real estate business, was one of the largest owners of real estate in Austin through his investment firm, World Class Capital Group. A string of bankruptcies followed. In 2019, the FBI and U.S. Treasury Department agents searched Paul’s home and business offices, bringing Paul and Paxton together.
Paul complained that the federal agents doctored search warrant records, and Paxton directed his agency to take a number of “bizarre, obsessive” actions to investigate Paul’s complaint, according to a whistleblower lawsuit filed by four Paxton deputies who had been fired.
In 2018, Paul had given a $25,000 donation to Paxtons campaign. The former top aides also claimed that Paul helped Paxton fund an extensive remodel of his Austin house and gave a job to a woman with whom Paxton allegedly had an affair. Paxton is married to state Sen. Angela Paxton, R-McKinney.
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Austin, TX
Texas' goal-line wall will be tested by Arizona State
AUSTIN, Texas — The Texas defense seems to have built a big burnt orange wall at the goal line.
Late-game goal-line stands have helped keep the Longhorns moving toward a possible national championship. The latest was Saturday night in Texas’ 34-28 win over Clemson in the first round of the College Football Playoff.
“We’ve got big people, and they know how to play a physical brand of football,” Texas coach Steve Sarkisian said. “When we get challenged like that … I think that’s part of our identity.”
So here comes Cam Scattebo, Arizona State’s 5-foot-11, 215-pound All-American wrecking ball of a running back to try to knock it down.
Texas’ win over Clemson sent the No. 5 seed Longhorns (12-2) to the quarterfinals against the Big 12 champion and No. 4 seed Sun Devils (11-2) in the Peach Bowl on New Year’s Day.
Skattebo put on a show the last time the Sun Devils were on the field. He scored three touchdowns, had 170 yards rushing and 208 all-purpose yards in Arizona State’s 45-19 win over Iowa State in the Big 12 championship game.
Skattebo bounced off tacklers, ran through others and outraced some more. He struck the Heisman Trophy pose a few times, then had a few things to say about it all afterward.
“Nobody respects the fact that I’m the best running back in the country. And I’m going to stand on that,” he said after the game. “I’m going to keep proving people wrong. And whatever NFL team takes me is going to get a gem.”
Skattebo brings some gaudy numbers to Atlanta to back it up.
The AP All-American’s 19 rushing touchdowns and 22 overall are both tied for school records. He needs 75 yards to break the program’s single-season rushing record of 1,642.
He was twice the AP national player of the week. The first time was for his career-high 262 yards rushing amid his 297 all-purposed yards in Week 2 against Mississippi State. The second was for his game against Iowa State.
Texas players say they are ready for the Sun Devils’ battering ram.
“Yeah, I’m excited,” Longhorns defensive tackle Barryn Sorrell said. “My time being here, I feel like I’ve heard that a lot, that a team is going to come in here and run the ball on us, and I’d like to say there was a different result a lot of those times.
“Just looking forward to that challenge again,” Sorrell said.
Sorrell was in the middle of fourth-quarter goal line stands that helped save wins against Texas A&M and Clemson.
Texas was clinging to a 17-7 lead in College Station when the Longhorns stuffed four consecutive runs inside their own 5. The win sent Texas to the SEC championship game.
Clemson had a chance Saturday to get within a touchdown in the final 8 minutes. A touchdown could have completely swung momentum their way.
But after reaching the Texas 1, two straight runs failed to reach the goal line. Sorrell was in on the tackle that stopped Clemson’s Keith Adams Jr. just short of a touchdown on fourth down.
“We take pride in not letting guys score or get in our paint,” Texas safety Andrew Mukuba said.
Texas is not perfect at the goal line, however. Georgia won the SEC championship in overtime when Trevor Etienne bowled into the endzone from the Texas 4.
But they’ve been close enough to it to keep charging deep into the postseason.
“It’ll be an amazing challenge,” Texas All-American cornerback Jahdae Barron said of facing Skattebo. “He’s a hard downhill running back.”
Austin, TX
Klubnik not enough to carry Clemson over Texas in homecoming playoff loss
AUSTIN, Texas (AP) — Cade Klubnik carved up Texas’ defense Saturday night like nobody else this season, just not enough to complete a spectacular homecoming.
Klubnik, Clemson’s junior quarterback from Austin, passed for 336 yards — the most by a Texas opponent this season — and three touchdowns. He directed a second-half comeback that gave No. 12 seeded Clemson a chance to overtake No. 5 Texas after falling behind by 18 at halftime.
But the Tigers fell short, losing the College Football Playoff game 38-24.
“I’m hurting a lot,” Klubnik said. “It was fun to come home, but it was not a vacation. It was time to come win a football game, and we didn’t do that.”
Klubnik led the Tigers (10-4) on a four-play, 55-yard touchdown drive in the third quarter, the final 25 on a pass to running back Jarvis Green that left Clemson trailing 31-17.
He directed a 64-yard touchdown drive early in the fourth quarter. His 7-yard pass to T.J. Moore, on fourth-and-6 left Texas ahead by just a touchdown, 31-24.
“We put ourselves in a position to win,” Clemson coach Dabo Swinney said. “That young man (Klubnik) has grown into an amazing leader. You’re never out of a game with him.”
Texas (12-2) made Klubnik’s job a lot tougher when Jaydon Blue raced 77 yards for a touchdown on the Longhorns’ first possession after Moore scored.
Nevertheless, Klubnik led Clemson 74 yards to the Texas 1, connecting with Moore three times, including completions covering 29 and 30 yards.
But Klubnik was stopped by Texas safety Michael Taaffe on third down and Keith Adams was stuffed on fourth by Bill Norton and Barryn Sorrell.
Clemson’s comeback attempt was over when Klubnik’s pass on fourth down was broken up by Taaffe at the Longhorns’ 25 with 1:16 left.
Taaffe and Klubnik were teammates at Westlake High School when they won the 2020 Texas state high school championship together. The quarterback they beat that day? Texas quarterback Quinn Ewers.
That history and rivalry added some extra spice to Klubnik’s trip home.
Another Westlake teammate, Texas defensive end Ethan Burke, sacked Klubnik in the first half Saturday.
Earlier in the week, Taaffe said Klubnik was his “best friend” on the Westlake team when they won that state championship.
“We were definitely sharing words back and forth, that was fun,” Taaffe said. “He’s a great guy. He had a great game.”
Austin, TX
Body found in same Austin lake where 6 other deceased individuals were found in 2024
Another body was found in the popular Lady Bird Lake in Austin, Texas, where other deceased individuals were found recently.
The latest body found joins the growing mystery after at least 6 additional bodies were found throughout the year in the lake in 2024. On Friday, police were called to investigate reports of a dead person in the water near 1st Street Bridge and the 300 block of Cesar Chavez.
The Austin Police Department (APD) said that they do not suspect foul play as the body showed no signs of trauma, but are investigating the incident.
Despite APD attempting to quell community fears, questions and speculation have run rampant. Police have attributed most of the deaths to accidental drowning due to the lake’s proximity to nightclubs and bars.
BODY FOUND IN SAME AUSTIN LAKE WHERE OTHER DECEASED INDIVIDUALS DISCOVERED IN RECENT MONTHS
The most recent body was found on December 1. The victim was recently identified as 73-year-old Thi Lang Nguyen. Austin police said that there is nothing connected to the other deaths this year.
TEXAS PARENTS OF ONLYFANS MODEL IN DEADLY MIAMI STABBING ARRESTED
In September, a man was behaving erratically near East Cesar Chavez and Nueces Streets. He then went into the water and did not resurface. He was later pulled out and pronounced dead.
WATCH:
Back in February, a woman’s body was found in the water about 20 feet from the north shore and in April, a fisherman spotted another person floating in the water.
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In July, a man was suffering from blunt force trauma on the trail near Rainey Street. The man was pronounced dead a short time later.
In September, a body was found along a trail near the lake off Pleasant Valley Road.
Fox News Digital has reached out to the APD for comment.
Fox News Digital’s Louis Casiano contributed to this report.
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