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August 10, 2023      10:04 AM

Statesman: Federal grand jury in San Antonio reviewing Paxton ties to Austin developer Nate Paul

Reporters Ryan Autullo and Tony Plohetski have the scoop:

Federal prosecutors have seated a grand jury in San Antonio and called witnesses close to impeached Texas Attorney General Ken Paxton to testify, two sources with knowledge of the investigation told the American-Statesman.

The purpose of the testimony is unclear, but it comes days after Paxton's attorney confirmed last week that there is an active and ongoing federal investigation of his client. Federal investigators began looking into Paxton in October 2020 following a report from top aides alleging that Paxton misused his position as the state's top lawyer to assist a campaign donor, Austin developer Nate Paul, then the target of a separate FBI probe.

The sources, who were not authorized to speak publicly on the grand jury proceedings, declined to identify the witnesses that prosecutors have subpoenaed to testify. The Justice Department did not respond to a request for comment from the American-Statesman on Wednesday.

The secret proceedings come a month before Paxton is set to stand trial for impeachment in the Texas Senate, where the three-term Republican faces removal from office based on bribery allegations involving Paul. House impeachment lawyers say Paxton, in exchange for assisting Paul in several legal matters, received a home remodel funded by Paul, and the developer also hired a woman with whom Paxton had an extramarital affair. Paxton is suspended without pay pending the Sept. 5. trial.

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