Austin (KXAN) – Austin Real Estate Investor Nate Paul will be sentenced to the Federal Court on Wednesday. This ruling concludes a drawn legal battle in which the 38 -year -old faced dozens of charges of fraud in banks and wires that were carried, with a maximum of decades in prison.
In an agreement with the prosecutors, Paul admitted that he was guilty in January for a charge of making a false statement of a financial institution. In that session in January, the defense team Paul said that the approval agreement does not carry a six -month prison sentence, five years of supervision and a fine of one million dollars.
The government originally sought a $ 172 million ruling against Paul, an amount equal to the amount that the prosecutors said that he had obtained a fraud from the lenders, according to court records.
Although Paul was a major player in the real estate industry in Austin, he received widespread recognition because of his alliance with the Texas Ken Pixon Public Prosecutor and the calling of the use of offices’ allegations against Pakston, which sparked his deficit.
The beginning of the federal prison period will witness the end of the legal epic that has collapsed its vast real estate founder.
From “miracle” to prison
Paul was riding high in 2017. Forbes article It was published in that year, the 30-year-old real estate investor and the head of his company named World Class- as a “miracle” have already collected a group of more than 120 properties worth more than $ 1.2 billion.
That wave of success quickly shattered … and shattered. In 2019, the FBI raided the global business headquarters. A series of bankruptcy was followed, and in June 2023, the federal authorities arrested and accused him of eight charges of bank fraud.
The initial indictment was accused Paul, to make false data for lending institutions to obtain loans worth $ 172 million for various real estate projects. Public Prosecutors detailed the repeated events in which Paul exaggerated and falsified the value of his bank accounts to qualify for loans. In one case, for example, the general prosecutors claimed that Paul was seeking a loan of $ 48 million and used a fake document to make it apparently he had more than $ 18 million in a bank account when he was actually less than $ 13,000, according to the accusation compensation.
Prosecutors added four charges of wire fraud In an absolute indictment in November 2023, those charges claimed that Paul falsely represents that the money for limited partnerships will be isolated and remained for use in those limited partnerships. But the prosecutors claimed that he had transferred the money to use it in his other commercial endeavors.
Regardless of one census in the enforced indictment, prosecutors rejected all charges against Paul.
Paul acknowledged that he was guilty of counting 10 in the solid indictment, which claimed that he claimed that he was carrying 100 % ownership of a company called Silicon Hills campus, LLC, as part of a $ 64 million loan agreement in 2018. Paul has already received only 9 % interest in the company, and a limited company in California, according to 91 %, according to court records. Use the loan urine to buy 158 acres and multiple buildings in the northwest of Austin.
Paul initially admitted that he was not guilty of all charges against him, and assembled a team of heavy defense lawyer who seemed ready to put the case in front of the jury. Outside the courtroom in February 2024, Paul’s lawyer, such as Maurice Coxan, told the “trial” case.
However, since both sides worked through a mountain of discovery, the date of the experiment was pushed over and over again. Both defense and public prosecutors told the judge that they were struggling to collect a set of discovery records, which included more than 4 million documents and database with more than 700 bank accounts, according to the court.
David Ezra, the American boycott judge, initially, was initially reset of the trial in July 2024, then he was rescued again to November 2024 and then again to February 2025.
In January, both sides asked for another trial to reset, but Ezra said he saw enough. The judge denied a joint request to continue on January 8, saying that the case “has already gone for a long time”, and “there must be a point in which the court puts its foot.”
One week later, on January 15, Paul admitted that he was guilty.
While the federal bank fraud is so much that it is the legal issue that Paul faced, it is his relationship with Paxon that pulled him to the spotlight.
Paxston pro -dropping allegations
In May 2023, the Parliament’s General Investigation Committee held listening sessions in its investigation in Buckston and the abuse of the position that appeared on those reported to the violations in his office. Members of the House of Representatives responsible for the investigation said they were asked to start the investigation after Paxston approached the legislative body to obtain more than 3 million dollars to settle a lawsuit filed by the informed of the illegal termination.
Several allegations focused on taking advantage of Pakston on the strength of his office to help Paul. Paxton Paul helped in a lawsuit against a charity called MITTE and rented an external lawyer to help Paul, the committee claimed.
Buckston fought every step on the road, as he threw himself as a victim of a corrupt attempt to overthrow him and challenge the will of Texas. It was isolated by the House of Representatives, then he tried and was acquitted in all dismissal materials by the Senate in the state in September 2023.
The issue of the Mitt Foundation
Separate from the Federal Paul case, he also faced a legal problem in the civil issue of the MITTE Foundation.
The issue of the MITTE Foundation lasted for years to solve and focus on millions of dollars invested by the Foundation in PAL companies and sought to recover after years. In February 2021, the MITETE Corporation Grade granted $ 1.9 million as compensation, according to court records.
During this civil litigation, the Travis Jean -Sofer Ball Province judge found a criminal contempt for the court in March 2023 on charges of perjury and violating a judicial order asking him to report financial transfers of more than $ 25,000, according to court records. Soifer Paul has ordered 10 days in prison, a penalty that was eventually serving last November, after a year and a half of appeal at all levels of the court system.