Nate Paul’s attorneys seek trial postponement, cite millions of documents to process
Attorneys for Nate Paul, a federally indicted Austin real estate developer with unique ties to impeached Attorney General Ken Paxton, have asked the court to suspend currently scheduled deadlines, which could move a potential trial to 2024. They say millions of documents still need to be analyzed in the complex financial crimes case, according to an unopposed motion filed Tuesday.
AUSTIN (KXAN) – Attorneys for Nate Paul, a federally indicted real estate developer with unique ties to impeached Attorney General Ken Paxton, have asked the court to suspend currently scheduled deadlines, which could move a potential trial to 2024. They say millions of documents still need to be analyzed in the complex financial crimes case, according to an unopposed motion filed Tuesday.
Paul, 36, was indicted in early June on eight counts of making false statements and reports to mortgage lenders and credit unions in 2017 and 2018 to secure multiple loans valued over $172 million for his businesses. Each count carries a maximum penalty of 30 years in prison and a $1 million fine.
Paul pleaded not guilty to all counts in June, and a federal judge scheduled the case for trial on August 14. Paul’s defense says there’s far too much discovery material to absorb, and they need more time to review records, write motions, speak with witnesses and other preparations. One of Paul’s attorneys also cited three separate pending federal cases he is involved in, as additional conflicts.
Paul’s attorneys asked the judge to suspend all deadlines in the scheduling order and set the case for a status hearing in six months, which would be mid-January.
Voluminous discovery
Discovery will encompass records gathered from more than 100 grand jury subpoenas and several search warrants that included computer seizures, according to Paul’s motion. The FBI searched the headquarters of Paul’s businesses, World Class Holdings, in 2019.
Federal agents collected about 5 terabytes of data, amounting to millions of pages. The government is now preparing an initial production of 118 gigabytes of data, which will take weeks to process. And that’s just the beginning, according to the motion.
“In addition, the government submitted over 5 million seized documents to a government “filter team” to segregate items that are protected by the attorney-client privilege, and that process is ongoing,” Paul’s attorneys said in the filing. “Even working cooperatively as we are, the government discovery will take months to complete – which is simply due to the enormous volume involved and the time needed to load into a database.”
Paul’s attorneys said a “unique feature” of the case is that there have been no allegations of lenders losing money on the indicted loans, which were secured with collateral. Paul’s defense wants time to “investigate the course of dealing” between Paul and each lender to determine what was known, whether any statements were false and the intent behind them, according to the motion.
Prosecutors also filed a confidentiality and protective order Wednesday that would prohibit the defense team from providing copies of discovery material to anyone other than their client, members of the defense or witnesses who agree to be bound by the order.
The confidentiality order bars Paul from providing discovery material to anyone other than a member of the defense team.
The federal judge had not made a decision on the motion for continuance or the motion for confidentiality of discovery materials, as of Thursday. Both motions are unopposed, according to court records.
Ties to Paxton
The allegations against Paul in the federal case are not related to his ties to Paxton, who was impeached in late May. Several of the 20 articles of impeachment against Paxton are connected to actions he allegedly took to benefit Paul.
Paxton is accused of using the Office of Attorney General to help Paul by intervening in a lawsuit between Paul and a charitable organization. Paxton is also accused of benefitting from Paul employing his mistress, as well as preparing a legal opinion to help avoid foreclosure sales of Paul’s properties, the articles state. The articles of impeachment describe Paxton’s actions as “constitutional bribery” and “disregard of official duty.”
Paxton was suspended from his duties following the impeachment.
Members of the House Committee on General Investigating said their investigation, which led to Paxton’s impeachment, began when Paxton asked the legislature for $3.3 million to settle a whistleblower lawsuit. That lawsuit was filed by high-ranking attorneys in Paxton’s office who said they were fired after complaining that Paxton had abused his office to assist Paul.
Paxton’s impeachment trial in the Senate is scheduled for September. Paxton has denied all the accusations against him in the impeachment.