Austin real estate developer Nate Paul is facing some serious legal battles on two fronts. On one side, he is on the verge of serving a 10-day jail sentence for criminal contempt in a civil case issued by a Travis County district judge. On the other side, Paul is seeking to dismiss a dozen criminal counts of bank and wire fraud.
Paul has been entangled in legal disputes for years, notably with the Mitte Foundation, a nonprofit organization that sued him over millions of dollars invested in his real estate company, World Class. The lawsuit connected Paul to allegations against Texas Attorney General Ken Paxton, who was later acquitted. The Mitte Foundation invested in World Class in 2011 but filed a lawsuit in 2018 due to disagreements over financial records and fund retrieval.
Travis County District Judge Jan Soifer sentenced Paul to 10 days in jail for contempt of court on March 31, 2023, for violating court orders. Despite Paul’s efforts to fight the sentence at various legal levels, including federal courts and appeals, he was ordered to turn himself in on April 10, 2023. However, appellate hearings led to a change in the date to April 1, 2024. The U.S. Supreme Court eventually denied Paul’s petition for review, indicating that his jail sentence is imminent.
In addition to his civil battles, Paul is also facing federal criminal charges, including wire fraud, making false statements to lenders, and conspiracy. These charges stem from allegations of defrauding partners and using funds improperly. Paul has pleaded not guilty to all counts and filed motions to dismiss and sever the charges in the superseding indictment.
Despite the legal challenges, Paul received support from the National Association of Criminal Defense Lawyers in his fight against the jail sentence. They argued that due process was not followed in the criminal contempt proceedings, advocating for Paul’s rights.
The trial for Paul’s federal criminal charges has been rescheduled to February 2025 after multiple delays. This postponement was requested by Paul’s attorneys to allow for the examination of millions of documents related to the case.
As Nate Paul continues to navigate these legal battles, the outcome of his court proceedings will have significant implications for his future in the real estate industry and beyond. Stay tuned for updates on this developing story.