World Class Capital Group real estate investor CEO Nate Paul, whose office was raided by the FBI last year, is under re-examination, this time over his relationship with Texas Attorney General Ken Paxton.
Whistleblowers in the Texas attorney general’s office allege Paxton ill-treated legal investigation involving the real estate developer and investor: a case filed by Paul against the FBI and another in which Paul accused eleven people, including two officers, of conspiracy to control $ 200 M worth of real estate owned by the World Class Capital Group, according to several news outlets.
The whistleblowers accused Paxton of bribery and abuse of office and alleged that Paul had used the AG office for personal gain through his relationship with Paxton, the Dallas Morning News reports.
An attorney for Paul could not be reached for comment, but both Paxton and Paul have denied wrongdoing.
Paul and World Class Capital have made significant real estate investments across Texas. The company purchased and renovated the 717 North Harwood St. office tower in downtown Dallas several years ago. Paul, who was named Forbes’ 30-under-30 list in 2016, is best known for his impressive real estate businesses across Austin.
World Class Capital acquired a portfolio of seven buildings on 45 acres in the Austin Met Center in 2018. The piece expanded the company’s portfolio in Austin to 6 million SF downtown and a 156 acre campus in north Austin, Bisnow reported.
Paul and Paxton’s relationship was first investigated in the months after Austin news outlets recorded video of FBI agents flooding Paul’s home and office in central Texas in August 2019.
No charges have been brought against Paul, according to the San Antonio Express News. A Justice Department spokesman declined to comment when Bisnow requested information about the status or existence of an ongoing criminal investigation or federal charges against Paul or Paxton.
Paul alleged the FBI had due process and civil rights violations and referred the matter to the Texas AG office, the Dallas Morning News reported. He alleged that the FBI searched his home without first showing him an arrest warrant and that he was later presented with rigged arrest warrants, according to the US News & World Report.
Whistleblower attorneys in the AG’s office eventually reported Paxton, claiming he had abused Paul’s allegations against the FBI. One of the big concerns of the whistleblowers was Paxton’s decision to refer the investigation to a relatively inexperienced outside attorney rather than the Department of Justice or a prosecutor with the authority to investigate the matter, according to the DMN.
Paul also walked into the AG’s office on lavish property charges where another developer in conspiracy with a federal judge attempted to gain control of $ 200 million worth of real estate he owned through a real estate reception program, Associated reported Press.
Paxton also allegedly had an affair with a woman he recommended for a position in Paul’s real estate investment business, and AG employees claim their position at World Class Capital clouded Paxton’s judgment on Paul, DMN reports. Paul refused to hire her to do himself a favor.
Paxton is a Collin County attorney no stranger to politics or negative headlines. The AG has been charged with securities fraud in a Texas court since 2015. However, he was able to continue his political career and won re-election in 2018.
Paul donated $ 25,000 to Paxton’s campaign in 2018. Numerous law firms, developers, and other business interests in North Texas also donated to Paxton in 2018 and 2019. Although real estate company donations to politicians have come under increasing fire in recent years, the donation does not confirm any inappropriate behavior between the two.
Paul has consistently claimed he did nothing wrong, alleging alleged wrongdoing by FBI investigators, judges, and other business interests.