AG ends probe over donor complaint
Decision comes as Travis County DA formally distances herself from case
Texas Attorney General Ken Paxton’s office said Friday that it is closing its investigation into a complaint made by one of his donors, hours after the Travis County district attorney formally distanced itself from the case.
Paxton had said he pursued the investigation urged by the donor, Austin real estate investor Nate Paul, only after getting a referral from Travis County District Attorney Margaret Moore’s office. But Moore already had told Hearst Newspapers that it was Paxton who first brought Paul’s request for an investigation to her and not the other way around.
A letter she sent Paxton on Friday upped the ante and made clear her office is cutting all ties to the probe, in which Paul alleged wrongdoing by state and federal law enforcement.
Moore noted all the revelations that have come out in recent days — revelations that demonstrate Paxton has more than gone out of his way to assist Paul and his troubled real estate dealings.
“Any action you have already taken or will take pursuing this investigation is done solely on your own authority as provided by Texas law,” Moore said. “The newly surfaced information raises serious concerns about the integrity of your investigation and the propriety of your conducting it.”
Seven of Paxton’s top aides have alleged that he committed bribery and other corruption crimes by advancing the investigation, and they forwarded the matter to law enforcement. Paxton has called the claims “false allegations” by “rogue employees.”
Moore said in her letter that the referral of the Paul matter from her office to Paxton’s, which had been in the hands of an outside lawyer Paxton hired, “cannot be used as any indication of a need for an investigation … or an endorsement of your acceptance of the referral.” She also said she had instructed her employees “to have no further contact with you or your office regarding this matter.”
Paxton’s office said in a statement Friday that it closed the investigation after it learned Travis County was closing its file.
“In this case, we can only inves
tigate in response to a request for assistance from the district attorney’s office,” the statement read. “This investigation is now closed.”
Paxton’s outside counsel, Brandon Cammack, confirmed to Hearst Newspapers that the investigation ended Friday and that his work was done. He declined to discuss any details about the investigation but offered some insight as to why he took the job.
“When one of the highest elected officials in your state calls on you to go and do justice, you rise to the occasion and do what you’re supposed to do,” he said.
Also Friday, the Texas Department of Public Safety said in a statement that it was not investigating allegations against Paxton. The matter was referred to the FBI, though the Texas Rangers “remain available to assist if necessary,” a DPS spokesman said.
The FBI said in a statement last week that it could not confirm or deny an investigation, as is the agency’s policy.
Paul, whose World Class Holdings company once was valued at $1 billion, has been under a cloud of financial troubles of late. More than a dozen of Paul’s companies have declared bankruptcy, and World Class is entangled in several lawsuits, published reports show.
The FBI raided Paul’s home and his businesses last year, and he has complained that he was treated unfairly and illegally by state and federal law enforcement. Those complaints reached Paxton’s ear and eventually led the attorney general to launch an investigation.
Last week, top aides to Paxton blew the whistle on his dealings with Paul and have staged a mutiny against him. In a text message first obtained by Hearst Newspapers, the officials — representing the top echelon of the attorney general’s office — said they had reported Paxton’s “relationship and activities with Nate Paul” to law enforcement.
Five of the top aides said in a letter Wednesday that they “thoroughly investigated the allegations in that referral and found they lacked any good-faith factual basis,” the Dallas Morning News reported.
Paxton has pointed the finger back at his aides for “impeding” an independently run probe his office is conducting. That assertion has all but collapsed now that Moore has revealed that Paxton brought Paul’s complaint to her first, along with records showing Paxton’s hired-gun investigator lacks independence.