AUSTIN — A team of investigators released sweeping findings of its legislative ethics probe into years of alleged criminal conduct by Texas Attorney General Ken Paxton.
Addressing the House Committee on General Investigating on Wednesday morning, lead investigator Erin Epley said the team of former prosecutors and white collar crime experts looked into “questions not just of criminal activity but also of ethical impropriety” related to Paxton’s relationship with Austin real estate investor and campaign donor Nate Paul.
They were brought on, Epley added, because Paxton’s agency asked the state for $3.3 million to settle a whistleblower case with four former employees who took their concerns about Paul and alleged corruption to law enforcement officials.
The investigators said Paxton “disregarded his duty and improperly used his office, his staff” and his resources to help Paul in his fight against a charitable foundation. They also said potentially private information may have been passed to Paul, who was under FBI investigation, and that Paxton directed staff to withhold details from federal and state law enforcement.
“General Paxton told him that he had spoken with Nate Paul, and that he was being railroaded,” Terese Buess said. She added Paxton said he did not want to use his office “to help the Feds or [the Department of Public Safety].”
The announcement of the House ethics inquiry this week rocked the Capitol and thrust Paxton’s agency into the spotlight just as Texas lawmakers are wrapping up the legislative session.
Paxton has clashed with Phelan, a fellow Republican, over the settlement funds. The Legislature must approve disbursement of the $3.3 million through its budget writing process, and the speaker has said it’s not a proper use of taxpayer money.
As the investigative team was releasing its findings Wednesday, Paxton went on conservative talk radio to defend the settlement and criticize Phelan. Paxton reiterated accusations that the speaker presided over the House while intoxicated, referencing a video that circulated on social media in recent days showing Phelan muddling his words toward the end of a 14-hour session.
“I think everybody knows he was drunk,” Paxton told host Mark Davis. “The video speaks to itself. I believe there will be more videos. I think there are more videos out there.”
On Tuesday, Phelan’s spokesperson said drunkenness allegations, which Paxton released just before details of the ethics inquiry were announced, “amounts to little more than a last ditch effort to save face.”
Affair, fraud allegations discussed
Rep. Andrew Murr, chairman of the investigating committee, and House Speaker Dade Phelan first confirmed the months-long inquiry into the agency and Paxton’s request for settlement money on Tuesday.
Epley said the team had reviewed hundreds of pages of documents, including emails, contracts, criminal complaints and lawsuit documents over months. They also interviewed the whistleblowers, other agency employees, officials in the local prosecutor’s office and more.
The team’s presentation to the committee, which is ongoing and could take hours, has already delved into the Paul accusations as well as other criminal allegations against Paxton. They have touched on the whistleblower’s allegations that Paul helped remodel the kitchen in Paxton’s Austin home and secured a job for a woman with whom Paxton was allegedly having an affair.
They have also discussed in detail an active criminal fraud case against the attorney general. Paxton was indicted for felony securities fraud eight years ago related to his involvement with a North Texas technology firm but has not yet faced trial.
“This team’s goal was not to judge the personal life of another, especially in this forum, but our role was also not to ignore pressure points, opportunities for compromise and places where benefit can be derived,” Epley said.
Austin bureau reporter Phil Jankowski contributed to this report.
