UNITED STATES NEWS

FBI arrests Texas businessman linked to impeachment of state Attorney General Ken Paxton

Jun 8, 2023, 3:06 PM | Updated: 6:20 pm

AUSTIN, Texas (AP) — FBI agents on Thursday arrested a businessman at the center of the scandal that led to the historic impeachment of Texas Attorney General Ken Paxton, a day after his defense presented evidence that was intended to counter bribery allegations but raised new questions about the two men’s dealings.

Nate Paul was booked into an Austin jail in the afternoon after being taken into custody by federal agents, according Travis County Sheriff’s Office records. It was not immediately clear what charges led to his arrest, and the records said only that he was being held on a federal detainer for a felony.

Lawyers for Paul and the U.S. Attorney’s Office in West Texas did not immediately respond to requests for comment. The FBI declined to comment, and a lawyer for Paxton, Dan Cogdell, said he had no additional information about Paul’s arrest.

Paul’s entanglements with Paxton were central to the GOP-led state House of Representatives’ overwhelming vote to impeach the Republican last month.

Paul’s troubled real estate empire has been the focus of federal scrutiny for years, and agents searched his Austin offices and palatial home in 2019.

The next year, Paxton involved his office in the federal case, a move that prompted his top staff to report him to the FBI.

Their allegations of bribery and abuse of office by Paxton prompted separate FBI investigation of the attorney general, which remains ongoing.

On Wednesday, Paxton’s defense team showed a packed room of journalists a bank statement that included a 2020 wire transfer purportedly showing him, and not one a donor, paying more than $120,000 for a home renovation.

The wire transfer was dated Oct. 1, 2020 — the same day seven of Paxton’s top deputies signed a letter informing the head of human resources at the Texas attorney general’s office that they had reported Paxton to the FBI over accusations of bribery, abuse of office and improper influence.

The $121,000 payment was to Cupertino Builders, whose manager was an associate of Paul, state corporation and court records show.

The company did not incorporate as a business in Texas until more than three weeks after the transaction took place. A company of the same name was formed in Delaware in April of that year, although public filings there do not make clear who is behind it.

Last year a court-appointed overseer for some of Paul’s companies wrote in a report that Cupertino Builders was used for “fraudulent transfers” from Paul’s business to Narsimha Raju Sagiraju, who was convicted of fraud in California in 2016. The report described Sagiraju as Paul’s “friend.”

Paul, who also employed a woman with whom Paxton acknowledged having an extramarital affair, has denied bribing Paxton. In a deposition, Paul described Sagiraju as an “independent contractor” and said he didn’t remember how they first met.

The timing of the payment — and the identity of who was paid for renovations at Paxton’s home in Austin — was not publicly known before his new legal team held a news conference in which they put financial documents on a projector screen while calling the impeachment a sham. They were first reported by The Wall Street Journal.

Tony Buzbee, a prominent Houston attorney who was hired by Paxton over the weekend and led the news conference, said by email Thursday that receipts “clearly demonstrate” Paxton paid for the repairs. He did not address questions about the timing of the payments or Cupertino Builders.

“Without any evidence the politicians leading this sham impeachment falsely accused General Paxton of not paying for the repairs to his home. That is a lie,” Buzbee said.

Since becoming just the third sitting official in Texas history to be impeached, Paxton has attacked the proceedings as politically motivated and rushed, saying he was never given the chance to rebut the accusations in the Texas House of Representatives.

“We have the receipts,” Buzbee told reporters Wednesday as the documents flashed onscreen. “This is the type of evidence we tried to offer them once we found out this foolishness was going on.”

Paxton is temporarily suspended from office pending the outcome of a trial in the Texas Senate that is set to begin no later than Aug. 28. The “jury” will be the 31 state senators including Paxton’s wife, Sen. Angela Paxton, who has not said whether she will recuse herself.

The Paxtons purchased the Austin house in 2018. When it was remodeled two years later, Paxton’s former staff alleged in court documents, Paul “was involved in” the work.

Among the 20 articles of impeachment are accusations that Paxton used the power of his office to help Paul over unproven claims of an elaborate conspiracy to steal $200 million of the developer’s properties. The FBI searched Paul’s home in 2019, but he has not been charged and his attorneys have denied wrongdoing.

The city has no record of building permits from the time of the renovations. A different Austin contractor — not Cupertino Builders — received a federal grand jury subpoena in 2021 for records related to work on Paxton’s home that started in January 2020.

Cupertino Builders was formed in October 2020 and dissolved less than two years later, according to Texas corporation records. Its manager was Sagiraju, who said in a deposition for an unrelated case that he did “consulting” work for Paul’s business and had an email address with Paul’s company.

Sagiraju acknowledged that he served prison time for securities fraud and grand theft in California before moving to Austin, according to a transcript of the deposition. He said he was first introduced to Paul by a mutual friend before his prison term and they later did “a few projects” together.

Lawyers for Paul and Sagiraju did not immediately respond to requests for comment. Paxton has been under FBI investigation for years and was separately indicted on securities fraud charges in 2015, though he has yet to stand trial. ___ Bleiberg reported from Dallas. Associated Press journalists Adam Kealoha Causey in Dallas and Derek Karikari in New York contributed.

United States News

Associated Press

Father of Palestinian American boy slain outside Chicago files wrongful death lawsuit

CHICAGO (AP) — The father of a 6-year-old Palestinian American boy fatally stabbed in what authorities allege was a hate crime has filed a wrongful death lawsuit. Oday Al-Fayoume filed the lawsuit last month against the suburban Chicago landlord charged in the attack that left his child dead and the boy’s mother seriously wounded. The […]

1 hour ago

Two women hug as Muslim and Jewish women gather at an interfaith workshop on the Israeli-Palestinia...

Associated Press

In US, some Muslim-Jewish interfaith initiatives are strained by Israel-Hamas war

Shireen Quaizar was wracked with doubt. For years, the school psychologist has been active in Muslim-Jewish interfaith dialogue, but the Israel-Hamas war left her reeling. “What are we doing with talking to each other?” she recalled thinking, frustrated by a conversation about the exact number of Palestinians killed in an Israeli airstrike. “This doesn’t work.” […]

5 hours ago

FILE - Rep. George Santos, R-N.Y., leaves the Capitol after being expelled from the House of Repres...

Associated Press

Republicans had New Yorkers lead the way in expelling Santos. Will it help them keep the majority?

WASHINGTON (AP) — George Santos is gone from the House, but his name is certain to pop up in key congressional races across New York next year. Democrats are targeting five seats held by first-term Republicans and looking to associate them with their former colleague in the state’s congressional delegation as often as they can. […]

5 hours ago

Associated Press

Israel orders more people in crowded southern Gaza to evacuate as heavy bombardment shifts there

KHAN YOUNIS, Gaza Strip (AP) — Israel on Sunday ordered more evacuations in and around Gaza’s second-largest city of Khan Younis, followed by heavy bombardment, as the military’s offensive shifted to the southern half of the territory where Israeli officials assert that leaders of the Hamas militant group are hiding. Palestinians in the Gaza Strip […]

10 hours ago

This photo provided by Mattel shows a Barbie doll of Wilma Mankiller. Toy maker Mattel is honoring ...

Associated Press

Barbie doll honoring Cherokee Nation leader is met with mixed emotions

OKLAHOMA CITY (AP) — An iconic chief of the Cherokee Nation, Wilma Mankiller, inspired countless Native American children as a powerful but humble leader who expanded early education and rural healthcare. Her reach is now broadening with a quintessential American honor: a Barbie doll in the late Mankiller’s likeness as part of toymaker Mattel’s “Inspiring […]

13 hours ago

Notes from students expressing support and sharing coping strategies paper a wall, as members of th...

Associated Press

Lacking counselors, US schools turn to the booming business of online therapy

Trouble with playground bullies started for Maria Ishoo’s daughter in elementary school. Girls ganged up, calling her “fat” and “ugly.” Boys tripped and pushed her. The California mother watched her typically bubbly second-grader retreat into her bedroom and spend afternoons curled up in bed. For Valerie Aguirre’s daughter in Hawaii, a spate of middle school […]

13 hours ago

Sponsored Articles

(KTAR News Graphic)...

KTAR launches online holiday auction benefitting Boys & Girls Clubs of the Valley

KTAR is teaming up with The Boys & Girls Clubs of the Valley for a holiday auction benefitting thousands of Valley kids.

Follow @KTAR923...

Valley residents should be mindful of plumbing ahead of holidays

With Halloween in the rear-view and more holidays coming up, Day & Night recommends that Valley residents prepare accordingly.

...

Desert Institute for Spine Care

Desert Institute for Spine Care (DISC) wants to help Valley residents address back, neck issues through awake spine surgery

As the weather begins to change, those with back issues can no longer rely on the dry heat to aid their backs. That's where DISC comes in.

FBI arrests Texas businessman linked to impeachment of state Attorney General Ken Paxton