Austin-based real estate developer Nate Paul could face up to six months in prison and a $1M fine after he agreed to plead guilty Wednesday to one charge of making false statements to a lending institution.
The 37-year-old faced 12 federal counts of loan and wire fraud, but the remaining 11 were dismissed as part of the plea deal, KXAN reported. Those included one count of conspiracy to commit wire fraud, three counts of wire fraud and seven other counts of making false statements to obtain about $172M in loans to purchase properties.
If the plea deal is accepted, it would end Paul’s 18-month federal loan and wire fraud case for allegedly making misleading and false statements to obtain money for businesses and property purchases in his role as CEO of World Class Holdings.
The U.S. Probation Office is set to evaluate the case before Paul is sentenced. The government recommended Paul receive a maximum of six months in prison followed by five years of supervised release and a fine of no more than $1M.
The Austin developer was arrested by the FBI in June 2023 and charged with eight counts of felony financial crimes.
The arrest came days after the GOP-led Texas House of Representatives voted to impeach Texas Attorney General Ken Paxton for what they claimed was a yearslong pattern of corruption. That pattern was said to have included misspent funds and misuse of Paxton’s office to assist Paul.
Four other wire fraud charges against Paul were added in November of that year.
Paxton was ultimately acquitted on 16 articles of impeachment following a trial that included accusations of abusing his power to benefit Paul, a friend of the attorney general’s and a political donor.
The jury trial for Paul’s case was scheduled to begin Feb. 18, with the developer potentially facing a maximum of 30 years in prison and a $1M fine for each of the counts of bank fraud. The counts of wire fraud each could have added up to 20 years in prison and a $250K fine, KXAN reported.
During a Jan. 8 hearing, Senior U.S. District Judge David Ezra shot down a continuance motion to delay the trial until April from the defense and prosecutors because the case had “gone on way too long.”
Before Paul’s arrest, World Class Holdings had a portfolio worth more than $1B with assets in 17 states and numerous subsidiaries, according to Forbes. Many of those subsidiaries have since filed for bankruptcy.
