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Brandon Cammack

Paxton accuses his accusers

Well, that’s one way to do it.

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In Republican Attorney General Ken Paxton’s first interview since seven of top aides accused him of accepting bribes and abusing his office, he said Tuesday that he was about to put one of them, first assistant attorney general Jeff Mateer, on administrative leave when Mateer made those accusations and resigned instead.

“I think he found out about it and decided he wanted to leave and set the narrative,” Paxton told the Southeast Texas Record.

Paxton also told the paper that he has placed two remaining executive employees — David Maxwell, director of law enforcement, and Mark Penley, deputy AG for criminal justice, who were among his seven accusers — on administrative leave while he investigates their actions.

Paxton’s statements on Tuesday provide the public’s first glimpse into how he is handling the matter inside the office of the Attorney General, where more than half of the executive staff has accused him of committing crimes.

[…]

In his interview Tuesday, Paxton reiterated his counterclaims against the whistleblowers, saying that they were trying to impede a legitimate investigation of the law enforcement agencies.

“It seems like my office did everything possible to stop an investigation of some law enforcement agencies,” Paxton said. “I can only come to the conclusion that there was an effort to cover up the reality of what really happened. This wasn’t supposed to be a complicated investigation.”

[…]

Paxton also backed accusations by Paul’s attorney, Michael Wynne, who said in a letter released late Sunday that Maxwell, a former Texas Ranger, berated Paul for even bringing the complaint. Paxton said he watched a video of the meeting between Maxwell and Paul.

“It was not a good interview — it was pretty harsh,” he said. “It was clear he had no interest in doing an investigation.”

In the interview, Paxton said Mateer also insisted that the attorney general did not have the authority to sign contracts and that only he, as first assistant, did. Paxton said he reviewed support documentation provided by Mateer and found it to be false.

“I don’t know why there’s so much turmoil over this investigation. I’m not impugning every law enforcement agent,” Paxton said. “We all should be held accountable. We all have to follow the law.”

Well, he was going to defend himself one way or another, and given what the accusations were, a defense of “no, they’re the real criminals” seems like the best option. That would then lead to the question of how it is Paxton managed to hire so many bad actors for high-ranking positions in his office, but that’s a problem for another day. For now, keeping his own ass out of trouble is the main goal.

Here we must pause and note that so far all we know is there were a bunch of accusations leveled against Paxton. We don’t know if there’s an investigation into the actions he’s alleged to have taken, much less if he did do the things he’s accused of. We do know that his accusers are fellow travelers in conservative circles, and that former Paxton lieutenant Chip Roy sided with them. We know that folks like Greg Abbott and Dan Patrick and John Cornyn have been in full “wait and see” mode, which may suggest that they genuinely don’t know what to make of all this, or that they’ve heard enough scuttlebutt to think there’s something to it, but they’re either not ready to throw Paxton overboard, or they’re seeking a more graceful way out of this mess. A lot of information has come out so far, none of which looks great for Paxton, but nothing yet that would force him to resign. That may be what this is like for awhile, and then either the feds do something to make it clear they’re going after him, or we get a press release saying he’s in the clear. Until then, this is what we have to sustain ourselves.

Well, there’s also this.

[Brandon] Cammack declined to answer questions about his work for the agency or speculate as to why Paxton called him about the job. But said he “rose to the occasion” in accepting a major assignment from the state’s top lawyer and that the fallout has been “unexpected.”

“When one of the highest elected officials in the state reached out to me to go conduct this investigation, knowing what my background and knowing what my experience was, with regards to state law claims… I took it seriously,” Cammack told The Texas Tribune Tuesday.

“I don’t know anything about office politics… I don’t know anything about [the relationship] between people. I was called to duty. I showed up for duty,” he said.

Cammack’s work for the attorney general’s office has ended, though he said it was “beyond” him to know if the review would go forward in someone else’s hands.

[…]

Legal experts have questioned the precise nature of Cammack’s job — Paxton described him as both an “outside independent prosecutor” and as “independent counsel” — and asked how he was able to issue subpoenas that aides said “related to private business concerns of Nate Paul.”

They also raised concerns that Cammack — who is connected to [Nate Paul’s attorney Michael] Wynne through their involvement in the Downtown Rotary Club of Houston and the Houston Bar Association — lacked the experience for such a high-profile assignment.

Cammack said the subpoenas were issued by a Travis County judge and that he never went before a grand jury. He submitted an application for subpoenas to the Travis County district attorney’s office and they assisted in getting them issued, he said. He declined to answer other questions about the subpoenas, including which judge issued them, and his role.

Cammack also disputed the notion that he lacked experience, saying he’d had a “successful practice” in Houston for about two and a half years, handling primarily criminal defense work. His investigation for the attorney general’s office centered on violations of the Texas penal code — “something I’m very well versed in having handled hundreds of cases for hundreds of families here in Harris County and contiguous counties.”

He said he was “not friends” with Wynne, but declined to say why Wynne was present when at least one subpoena was delivered. He also would not specify Paxton’s involvement in his work or provide specifics about his investigation.

Cammack said he was interviewed for the outside counsel position on Aug. 26 by Paxton and Mateer. He declined to provide specifics about the conversation, but said he understood there were a few other candidates for the job, and that Paxton asked about his educational and professional history.

A few days later, Cammack received a call from Ryan Vassar, deputy attorney general for legal counsel, about his contract, he said. Signed in early September, the agreement says Cammack would be paid $300 an hour to investigate a complaint and compile a report about any potential criminal charges. It did not give him the authority to indict or prosecute, and said he could work only as directed by the office of the Attorney General.

Cammack’s work on the case largely ended in late September when he received a cease and desist letter from Penley, the deputy attorney general for criminal justice, and then Mateer.

I mean, we still don’t know much, but what we do know just looks sketchy. And so we wait for more.

Nate Paul strikes back

Just when I think this can’t get any better.

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When Ken Paxton announced Friday his office was dropping the investigation into an Austin real estate investor’s claims of mistreatment during a federal raid of his home and business, the attorney general may have hoped the questions swirling around his relationship with Nate Paul would dissipate.

But a letter released late Sunday by Paul’s attorney that appears to be laying the foundation for a lawsuit against Paxton’s office dispelled any notion the controversy would go away soon.

[…]

Until now, Paul and his attorney, Michael Wynne, have remained mostly silent. But Sunday’s letter, in which Wynne demands that the attorney general’s office preserve documents related to the investor’s contact with Paxton’s office, flips that narrative.

In it, Wynne asserts that, far from helping his client’s cause, deep dysfunction inside Paxton’s office scuttled his client’s legitimate claim of abuse at the hands of federal investigators and has led to “A chaotic public spectacle of allegations.”

In Wynne’s telling, investigators’ behavior during the August 2019 raid against Paul were “among the most egregious examples of inappropriate behavior by government officials that I have witnessed in my professional experience.” The searchers tampered with records and then gave testimony contradicted by documents, he wrote.

Paul took his complaints to District Attorney Margaret Moore, who advised him that Paxton’s office was the correct agency to conduct any investigation of wrongdoing on the part of the searchers, including the FBI. But when Paul detailed his complaints, Paxton’s staff was dismissive and abusive, Wynne wrote.

At a July meeting, Paul’s team was “met with open hostility,” Wynne wrote. Paxton’s director of law enforcement, David Maxwell, “berated and insulted my client for bringing the complaint.”

Wynne said additional meetings with Paxton’s staff yielded the same “hostile attitude.”

Paxton personally attended a third meeting, Wynne wrote. At it, Paul demonstrated that the attorney general’s review of his complaint had been cursory and contained several errors, and that “this appeared to be an embarrassment to your office,” Wynne recounted in the letter.

Oh, my. Paul and his attorney are mad about the way Paxton’s office handled his demand for an investigation into the way he was treated by the feds, whom you will recall were investigating him for various alleged financial misdeeds. The seven senior members of Paxton’s staff found Paul’s complaint to be without merit, and the fact that Paxton proceeded – including the hire of the inexperienced and unqualified Brandon Cammack – is what led to them sending Paxton a letter alleging that he was taking a bribe. Maybe this is Paul’s way of saying he expected better service at that price.

The Trib adds some details.

Wynne’s letter places the blame for the debacle on the attorney general’s office, alleging top aides there failed to investigate his client’s claims as they should have and “deprived [Paul] of a proper review.”

“The mishandling of this complaint as outlined below has risen to an alarming level,” Wynne wrote in the letter, which also demands that the agency retain all related documents and files in preparation for potential litigation.

[…]

Wynne questioned the attorney general’s office’s basis for closing the inquiry, accused employees in the attorney general’s office of making “numerous inappropriate and false statements to the media” and said their handling of Paul’s complaint culminated in a “chaotic public spectacle of allegations, mudslinging, and an apparent power struggle” within the agency last week.

Top aides to Paxton have said internal investigations showed that Paul’s complaint lacks “any good-faith factual basis” and have accused their boss of serving a donor’s interest by hiring an outside attorney to pursue it.

Wynne said the circumstances of the federal search were “among the most egregious examples of inappropriate behavior by government officials” that he had witnessed.

In May 2020, Paul “sought guidance on the protocol for reporting a complaint” about the search and was told by Paxton to file it with the Travis County district attorney’s office.

The next month, the district attorney’s office referred the complaint back to Paxton’s agency after determining it would be “inappropriate” to send it to the Department of Public Safety, which was named in the complaint.

Wynne said “seven weeks of inaction” were followed by a series of meetings between him, Paul and officials in the attorney general’s office, whom he accused of being “hostile.”

At a meeting on July 21, the attorney general’s director of law enforcement, David Maxwell, “berated and insulted” Paul for bringing the complaint and attempted to intimidate them into dropping the matter, Wynne alleged.

He wrote that Maxwell and another top official — Mark Penley, one of the signatories on the letter about Paxton — attended a second meeting, in which Maxwell at one point yelled at Paul and asked “who [does] he think he is?”

At a third meeting, personally attended by Paxton, the review was found to be flawed and “appeared to be an embarrassment to your office,” Wynne alleged.

The Karen-like “I want to speak to your manager” energy out of this is strong, isn’t it? I’m dying for them to file a lawsuit against the AG’s office over this, because discovery is sure to be a hoot. The capacity this scandal has had to surprise and amaze me has been quite the source of joy these past few days.

And speaking of Brandon Cammack, the Paxton special prosecutors have some thoughts – and a motion – about how much Paxton paid him.

Texas Attorney General Ken Paxton has argued that $300 an hour is too much to pay the two special prosecutors appointed to take him to trial in a long-running felony securities fraud case — but that’s the rate his agency is paying the inexperienced attorney Paxton hired last month to investigate a complaint by a political donor.

[…]

The prosecutors, Brian Wice and Kent Schaffer, pointed out that irony in a spirited filing Friday before Harris County District Judge Jason Luong, asking that they be compensated at the same rate as Cammack, whom they dismissed as “an untested and unqualified rookie.”

“If this hourly rate sounds familiar, it should: it is the very rate the Pro Tems were promised when they were appointed,” they wrote in a Friday filing. “If the defendant’s choice to pay Cammack $300 an hour appears to be disingenuous, it is only because it is: in successfully derailing this prosecution by spearheading a concerted effort to defund it, the defendant has repeatedly referred to the Pro Tem’s $300 hourly rate in his filings as unreasonable and unwarranted.”

Wice and Schaffer, who told the court that between them, they have 80 years of experience in the criminal justice system, questioned why they should not be entitled to the same sum as Cammack, “whose own experience, training and expertise, compared to the Pro Tems, is virtually microscopic.”

Paxton can “run but not hide” from his “concession that $300 an hour is reasonable,” Wice and Schaffer argued.

In their own filing to the court, Paxton’s defense attorneys told the judge that Cammack’s contract is irrelevant to the issue of pay for the prosecutors.

[…]

The issue of prosecutor pay in the securities fraud case against Paxton was raised by a Paxton donor, Jeff Blackard, in December 2015, when he sued, calling the fees exorbitant. Since then, the issue has dragged through the courts for years, bouncing all the way up to the Texas Court of Criminal Appeals, the state’s highest court for criminal matters.

Paxton’s defense attorneys told Luong he should rely on the high court’s ruling — which found the $300 hourly rate fell outside legal limits — in determining how much Wice and Schaffer should be paid.

Nothing in the prosecutors’ filing, “which contains unsubstantiated gossip about an irrelevant matter and no legal argument, authorizes this court to disregard the holding of the CCA and grant the relief requested by the pro tems,” Paxton’s attorneys wrote.

I don’t know if Wice and Schaffer’s motion can be a justification to essentially overturn that CCA ruling, but it certainly shows (again) why that ruling was ridiculous, and why the current system for hiring special prosecutors is fundmentally flawed. They may not be able to do more than score political points, but even just a reminder of how much Paxton has been coddled and protected by his political buddies all these years is useful. The Chron and Rick Casey, who notes a connection between Michael Wynne and Brandon Cammack, has more.

Why did Ken Paxton hire a newbie attorney to be a “special prosecutor” or whatever he meant to call him?

The Trib has some questions.

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It was a baffling, perilous, perhaps unprecedented task.

Texas Attorney General Ken Paxton hired an outside lawyer last month to look into a complaint of misconduct by a host of state and federal officials, including the Texas Department of Public Safety, the Federal Bureau of Investigation and a U.S. attorney’s office. The claim had been made by a Paxton donor whose home and office were reportedly raided by federal agents last year.

Some legal experts say the investigation should never have been in the hands of the attorney general’s office at all. But if it was, longtime Texas attorneys say, it’s a job for a seasoned prosecutor, perhaps someone with years of experience as a U.S. attorney or district attorney, someone who’d already established a reputation, someone who’d taken dozens of cases all the way from investigation to sentencing.

Instead, Paxton personally signed off on a $300 hourly rate for Brandon Cammack, a 34-year-old Houston defense attorney with ties to the donor’s attorney and five years of experience whose docket, court records show, largely comprises cases involving driving while intoxicated, low-level theft or assault.

Paxton’s office abruptly ended that investigation Friday after political backlash from both parties and criminal allegations from his own top aides. But questions about Cammack’s role — and the process of his selection — persist.

“That’s the $64,000 question: How did Paxton come to hire this particular lawyer?” said Tim Johnson, a former U.S. attorney for the Southern District of Texas. “You’d expect, for something that would have the possibility for serious consequences, that you’d want to have somebody that had a great deal of experience in the criminal justice system. And it doesn’t appear that they did that.”

Equally inscrutable is the precise job Cammack was hired to perform for the attorney general’s office. Paxton has described him both as an “outside independent prosecutor” and as “independent counsel,” and one subpoena obtained by The Texas Tribune refers to Cammack as a “special prosecutor.”

But Cammack’s contract, which Paxton released this week, shows that Cammack was never independent, nor was he a prosecutor. Cammack can investigate “only as directed by the [Office of the Attorney General],” and his contract specifies that he will not be involved in any indictment or prosecution born out of his investigation. He’s submitted an invoice for more than $14,000 of work, according to media reports.

I’ll get back to this article in a second, but I should note that it’s a pretty good overview of the story so far, and includes a lot of new details. Because this is a sprawling story that’s being told in multiple places, it also covers some stuff we’ve already talked about. No one is going to be able to write a short article for anything related to this just because recapping the backstory will take at least six paragraphs.

Legal experts and lawyers who’ve worked with Cammack, including his estranged father, questioned whether he has the experience needed to take on such a high-profile assignment.

As recently as 2018, a judge appointed a more senior attorney to assist Cammack when he was working as a defense attorney on a felony manslaughter case.

Mark Hochglaube, the longtime prosecutor and defense attorney who was brought in, said it wasn’t clear whether the judge or Cammack himself considered the young lawyer too inexperienced to handle the case alone — but that both were on board with getting Cammack some help.

Their client, who was found guilty of manslaughter, was sentenced to 50 years.

He praised Cammack’s effort on the case but questioned his selection for the high-profile appointment.

“If I were the attorney general, and I was in this predicament, would the name Brandon Cammack be the first name that popped into my mind? No, it wouldn’t,” Hochglaube said.

Young attorneys can often punch above their weight and rise quickly through the ranks, Hochglaube said, but he added, “I have a hard time saying, based on my experience with Brandon, that I would’ve thought this was suitable for him.”

[…]

Beyond questions about Brandon Cammack’s qualifications, the scope of his role is murky, too.

Why, some legal experts wondered, would a state attorney general be investigating claims against federal authorities at all? Some called the situation unprecedented.

“I guess every politician is limited only by his imagination,” said longtime Houston defense attorney Rusty Hardin, “but that’s a pretty unique event.”

Edward Loya, a Dallas attorney and former federal prosecutor for the U.S. Department of Justice, said FBI agents are not above the law, and, in principle, there is nothing wrong with the state attorney general looking into FBI misconduct for violations of Texas law.

But he added that it is unusual — and raises serious ethical questions — for a state attorney general to take on an investigation of FBI misconduct in a case involving alleged criminal activity of one of the attorney general’s donors. The prudent course, he said, would have been to refer the matter to the U.S. Department of Justice’s Office of the Inspector General, an independent division within DOJ that probes such claims made against DOJ employees.

“I can’t imagine that’s ever happened before,” said Johnson, the former U.S. attorney, adding that if he had been asked to fill Cammack’s role, “I would’ve stayed as far away as I could.”

“Anybody with half a brain would’ve gotten as far away from this as they possibly could,” Johnson said. But Cammack “may not have had enough experience to realize this is something he really shouldn’t want to get involved with.”

Lawyers interviewed by The Texas Tribune said Cammack’s official role as outside counsel raises questions about whether he had the authority to issue subpoenas, a power limited to prosecutors and assistant attorneys general. His actions in the case could open him up to legal liability if he usurped his authority, and Phelps, the former official in the attorney general’s office, questioned whether the issuance of the subpoenas amounted to a criminal offense.

“An outside counsel is not a ‘special prosecutor’ and has no authority to issue subpoenas, appear in front of a grand jury, or prosecute a criminal case,” said Phelps, who also worked for a decade as first assistant district attorney in Brazos County, and head of a special prosecutions division under Morales.

“I wish someone would pull that Brandon Cammack aside because I think he’s being used, because of his inexperience,” Phelps said.

I skipped over a couple of paragraphs that describe Brandom Cammack’s relationship with his father, who is also an attorney and who comes across as an abusive. It’s icky stuff.

After several days and a whole lot of reading, I’ve been thinking about how to summarize what we know so far, so if we get into a conversation with someone who knows nothing about this other than a vague recollection of some headlines or Facebook posts, we can help them understand. The basic gist of it is that a real estate hotshot in Austin named Nate Paul had been the target of an FBI investigation into his finances, which involved raids on his offices. Paul filed a complaint about the investigation and searches of his properties with the office of Attorney General Ken Paxton, to whom he had contributed $25K in the last election. Paxton did open an investigation, going through the Travis County DA’s office first with a somewhat shady legal pretext to get the investigation handled by his office instead of the DA. He then hired Brandom Cammack, an inexperienced attorney, in a role that is not clearly defined but is something like a special prosecutor, except that Cammack was not independent of Paxton, and no one thinks he had the qualifications or experience for the job. All of this looked like Paxton doing some legal work on behalf of Nate Paul but with the official seal of the AG’s office. That caused a revolt among Paxton’s senior assistants, who told him all of this was highly inappropriate at the least. In the end, seven top assistants to Paxton asked for a federal investigation of Paxton’s involvement in the Nate Paul situation, accusing him of being paid off by Paul to help Paul defend himself against the feds in their investigation of him. Whew!

That’s where things stand now, and there are various subplots and unanswered questions and who knows what else. You can see what I mean when I say that it will be impossible any time soon to write a short article relating to this. I feel like there are still some big shoes to drop, but I couldn’t even guess at what that might mean. It’s becoming quite the political hot potato, as US Rep. Chip Roy – a former top lieutenant to Paxton – has called on him to resign (as have a couple of newspaper editorial boards), and Sen. John Cornyn, himself a former AG, has expressed his disappointment in Paxton’s handling of this. I have to believe that this will be an issue in 2022, in a bigger way than the existing Servergy indictments of Paxton ever were.

One more thing, just to expand on an item noted in the story above: Paxton has officially closed the Nate Paul investigation that started all this, shortly after Travis County DA Margaret Moore told him her office was not going to be involved any more in any way.

Texas Attorney General Ken Paxton said his office is closing its investigation into a complaint made by one of his donors, hours after the Travis County District Attorney formally distanced itself.

Also on Friday, the Texas Department of Public Safety said it was not investigating allegations by aides in Paxton’s office that he committed bribery and other corruption crimes but instead the matter had been referred to the Federal Bureau of Investigations. A DPS spokesman said the Texas Rangers are available to assist.

Paxton had argued that he only pursued an investigation urged by the donor, Austin real estate investor Nate Paul, after getting a referral from Travis County District Attorney Margaret Moore’s office. Moore already told the Houston Chronicle that it was Paxton who first brought Paul’s request for an investigation to her and not the other way around.

A letter she sent Paxton Friday upped the ante and made clear her office is cutting all ties to the probe. Moore noted all the revelations that have come out in recent days — revelations that demonstrate Paxton has more than gone out of his way to assist Paul and his troubled real estate dealings.

“Any action you have already taken or will take pursuing this investigation is done solely on your own authority as provided by Texas law,” Moore said. “The newly surfaced information raises serious concerns about the integrity of your investigation and the propriety of your conducting it.”

She said the referral of the Paul matter from her office to his — until now in the hands of an outside Houston lawyer Paxton hired — “cannot be used as any indication of a need for an investigation …or an endorsement of your acceptance of the referral.” She also said she had instructed her employees “to have no further contact with you or your office regarding this matter.”

Paxton said in a statement Friday that he closed the investigation because his office “can only investigate in response to a request for assistance from the District Attorney’s office.”

I wonder if we’ll hear some more about this from the perspective of someone in Moore’s office, now that they are free of any constraint. We’re almost a week into this story and it’s still a total firehose of new information. The Statesman has more.

More on Nate Paul

This Trib story delves into the life and times of Nate Paul, the young Austin real estate entrepreneur whose relationship with Ken Paxton is the underpinning of the current scandal surrounding Paxton. The story goes into some detail about Paul’s life, which includes a habit of stiffing creditors and a general dickishness that I find crummy but which apparently don’t bother Paxton, but the key bit is right here:

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Meanwhile, Paxton’s office has come to Paul’s defense in at least one other legal matter, records show. Paul’s World Class firm works through a complex web of more than a dozen affiliated business partnerships, which jointly own properties with investors.

A dispute arose two years ago between companies affiliated with World Class and the Roy F. and Joann Cole Mitte Foundation, which invested in multiple Austin properties with the companies. The foundation is an Austin-based nonprofit that provides grants to charitable organizations and academic scholarships for students with financial needs.

The Mitte Foundation sued Paul in 2018, claiming he wasn’t sharing financial information on their jointly owned investments that Paul’s businesses managed. The case went to arbitration, and on July 1, 2019, a company affiliated with World Class agreed to buy out Mitte’s interest in the real estate partnerships for $10.5 million with payment due that August.

It never came, said Ray Chester, the lawyer representing the Mitte Foundation in the case.

In October 2019, the judge in the case ordered a receiver to take over the business partnerships, which would compel Paul to reveal the financial records that Chester said still hadn’t been shared with the Mitte Foundation. Chester said that within days, Paul “blatantly defied” the arbitrator’s ruling and said he had sold the partnerships at less than half of their market value.

But the sale was to another company affiliated with Paul, Chester said.

“He basically sold it to himself at below market value,” Chester said, although court records show the sale was never consummated.

As Paul’s firm cycled through teams of attorneys and held back on making the $10.5 million payment, Paxton’s office intervened in the case on behalf of World Class and its business affiliates this June, court records show. Paxton argued that his office needed to “protect the interests of the public” because the suit involved a charitable trust.

In July, Paxton asked a judge to halt the case. During that time, Chester said Paxton’s office called him five to 10 times per day to try to get him to settle for “pennies on the dollar,” calls that Chester characterized as “vaguely threatening.”

On Sept. 20, less than two weeks before news broke about the allegations against Paxton, the attorney general’s office reversed itself and announced its intention to step away from the case, which is still ongoing.

After filing for bankruptcy in August, the World Class affiliate handling investments in the property did not pay the $10.5 million or turn over the records, Chester said. But a clause in the settlement agreement does allow the Mitte Foundation to take a valuable, larger ownership share in the downtown property, Chester said.

One can certainly see some parallels to another well-known real estate personality, but that’s not what caught my interest. The obvious question here is why was Ken Paxton inserting himself into this particular dispute? It sure seems like a standard fight between a creditor and a debtor, so what was the state’s interest? I didn’t publish this post on Thursday because of Too Damn Much Other News, which is just as well because I then saw this Statesman story, which helped with some of these questions. As noted above, Ray Chester is an Austin attorney who has been representing the Mitte Foundation in its legal battles against Nate Paul and World Class, and apparently also Ken Paxton.

Chester contends the attorney general’s office exerted undue pressure to push for a settlement financially advantageous to Paul — or “pennies on the dollar” compared with what the foundation was owed under a previous $10.5 million settlement reached in 2019.

“We suspected all along that something fishy was behind the AG’s intervention in our case,” Chester said. “There is no legitimate reason why they would be helping Mr. Paul’s companies at the expense of a charity.”

The limited partnerships are called WC 1st and Trinity LP and WC 3rd and Congress LP, named after the locations of their properties. The 1st and Trinity partnership owns prime waterfront land on East Cesar Chavez, next to the Four Seasons Hotel and across from the Austin Convention Center. The WC 3rd and Congress partnership owns several tracts around the Austonian high-rise condos downtown.

In court documents and in an interview with the Statesman, Chester said Paul didn’t pay the $10.5 million settlement.

And as things continued to “go south” for Paul, Chester said Paxton started taking an interest in the legal fight.

Any time a charity is involved in litigation, the charitable trust division of the attorney general’s office must be notified because it has a right to intervene on behalf of the public interest in the charity.

But the only reason the attorney general should get involved in such cases “is to help the charity — not help the criminal guy against the charity,” Chester said. “And that’s what happened here, and that’s what’s made it so unusual.”

Michael Wynne, an attorney for Paul, told the Statesman that the foundation “refused to engage in any meaningful resolution” to the litigation, however, and also “colluded” with a court-appointed receiver in the case, squandering “over a million dollars in legal fees to line their lawyers’ pockets.”

Those are the among the reasons Paul brought the case to the attention of the attorney general’s charitable trust division, he said, disputing a contention by Chester that Chester’s office did so when the lawsuit was first filed — as it was required to do by law.

Wynne also said he is unaware of anyone from the attorney general’s office attempting to pressure Mitte to accept a settlement.

“We were obviously not privy to any of those conversations and have no basis to comment on them,” he said.

This at least helps me understand the claim that the AG needed to step in because the case involved a public trust. I’d love to hear from someone with actual experience what they think about all this.

Paxton mounted an investigation into allegations made by Paul that federal agents with the FBI and U.S. Department of Treasury acted unlawfully during [2019 searches of some of his properties]. Paxton tapped an outside attorney, Houston lawyer Brandon Cammack, to conduct that probe.

Seven senior Paxton aides — including his first assistant, who recently resigned — subsequently filed a criminal complaint against the attorney general that they say stems from his dealings with Paul, who donated $25,000 to Paxton’s reelection campaign in 2018. They’ve asked federal agents to investigate their boss for potential crimes that include bribery, abuse of office and improper influence.

Cammack’s appointment was among the actions that prompted the complaint. Paxton’s intervention in the Mitte case also has sparked controversy.

A senior official in the attorney general’s office recently voiced concerns to the American-Statesman about Paxton’s involvement in the Mitte lawsuit, saying attorneys in the agency’s charitable trust division were instructed by Paxton to weigh in, even though Paxton doesn’t typically take such a hands-on approach.

“I saw just no interest why our office should get involved in this thing,” the official said. “Legally, and just the optics of doing something for a guy who is under FBI investigation — I am like, ‘This is reckless.’”

Documents obtained by the Statesman indicate Paul prodded some staffers of the attorney general’s office to discuss with him their handing of the Mitte case and what Paul alleged to be improprieties by the foundation.

“Your decision to not even respond to my emails has only amplified my concern about your bias toward helping the Mitte Foundation,” Paul wrote in a July 1 email to Josh Godbey, head of the attorney general’s charitable trust division. “I have raised many issues and you have chosen not to respond.”

In a July 23 email, Paul complained to Jeff Mateer — Paxton’s former first assistant who recently resigned — about Godbey’s lack of action. Mateer responded to Paul’s attorneys, asking that all communications be conducted through them, and he also attempted to make clear the agency’s position on such matters.

“It is not our role to assist a party adverse to a charity in pending litigation or provide status updates on those matters,” Mateer wrote in a July 24 email. “Any such non-privileged communications subject to public disclosure might be perceived as questioning our office’s necessary impartiality, which we carefully guard at all times.”

Chester said his firm notified Paxton’s office about the lawsuit as required when it was filed, but was told the agency’s involvement wasn’t needed.

“A junior attorney called me, asked me a few questions and said, ‘You’re fine, we don’t need to intervene,’” Chester recalled.

That was the end of it, he thought.

But subsequently, Paul suffered a series of setbacks in the case. In addition, the court-appointed receiver started making plans to sell the 1st and Trinity property.

“The next thing you know, (the attorney general’s office) intervened,” Chester said. “At that point, we knew there was some connection between Nate and the attorney general’s office.”

“We quickly started getting pressure to settle the case,” Chester said, and “for much less” than the 2019 agreement of $10.5 million.

“They were strong-arming us to settle,” Chester said. “It was very uncomfortable and very threatening. Multiple people told me the pressure was coming straight from Paxton.”

There’s been a lot more reporting on this saga, which I have covered in another post. This is going to be a challenge to follow because multiple publications are all chasing different leads and advancing the story in a variety of ways. We still don’t have a clear picture of what was happening, and some facts are in dispute. But boy, everything we’ve seen so far looks deeply sketchy. I have no idea what Ken Paxton is thinking, but I suspect he’s in for some very rough times. And deservedly so.

Paxton’s first line of defense

Settle in, folks, this is going to be a long one. We’ll start with the Dallas Morning News.

Best mugshot ever

Texas Attorney General Ken Paxton is defending his decision to bring on an outside lawyer to look into a complaint from real estate developer and campaign donor Nate Paul.

In an unusual step Wednesday, Paxton’s office released documents to beat back accusations by his own top deputies that the outside attorney, Brandon Cammack, is acting without authority. The records show Cammack is billing the state $300 an hour and that Paxton personally signed his hiring document.

The records — released through the agency’s Twitter account — signal Paxton is digging in for a fight after seven of his most senior employees accused him of bribery and abuse of office. The staff have raised concerns over Paxton’s relationship with Paul, whose home and businesses were raided last summer by the FBI.

Multiple senior officials in the agency told The Dallas Morning News late Wednesday they believed Paul was attempting to use the power of the office of the attorney general for personal and financial gain. And in a document obtained Wednesday by The News, Paxton’s deputy warned Cammack his employment agreement was invalid and may have been signed by Paxton “under duress.”

“The document appears to be signed by Attorney General Ken Paxton. To be clear this office has no record authorizing such a retention under our agency’s operating policies and procedures,” then-First Assistant Attorney General Jeff Mateer wrote in a letter dated Oct. 1.

“We believe this purported agreement is unlawful, invalid, unenforceable, against public policy, and may have been executed by the Attorney General under duress,” Mateer wrote, without elaborating.

“Under duress”? UNDER DURESS? Holy mother of Ann Richards. What does this even mean?

Cammack, 34, told The News on Tuesday that Paxton reached out to him in August to gauge his interest in working as outside counsel. He was asked to look into a complaint from Paul alleging misconduct by state and federal employees that was referred to Paxton’s agency by the Travis County District Attorney in June.

On Thursday, Travis County DA Margaret Moore said Paxton personally asked her to look into the complaint. After her office held a meeting with Paxton, Paul and Paul’s attorney, Moore referred the complaint to the Office of the Attorney General.

“The scope and nature of the complaints comprised matters that the D.A.’s Office would normally refer to a law enforcement agency with the resources necessary to conduct the investigation,” Moore said in a statement. “The entities complained against included the FBI and the Texas Department of Public Safety, so the only appropriate agency left to whom we would typically make the referral was the Office of the Attorney General.”

But the agency’s investigation into Paul’s complaint stalled. Multiple senior officials told The News on Wednesday they recommended not proceeding further with the probe because they found that the agency had no authority to investigate the claims in the complaint or that they lacked merit. They believed that Paul was attempting to use the office for personal and financial gain.

Paxton reached out reached to Cammack, the lawyer told The News, to pick up the investigation. On Wednesday, the statement from Paxton’s office said he decided to hire Cammack as outside counsel because his own employees impeded the investigation and “because the Attorney General knew Nate Paul.”

But multiple senior officials who would have needed to sign off on outside counsel told The News on Wednesday that they vigorously opposed Cammack’s hiring.

We should note that as some other outlets reported, Paxton made it sound like Travis County DA Margaret Moore approached his office to handle this complaint. Moore has released a statement making it clear that Paxton approached her, and the referral back to his office was because it was legally the only appropriate way to proceed. Once again, my jaw is hanging open.

The way Cammack was brought on is highly unusual, according to a person familiar with the agency’s policies and procedures, who said all contracts must be approved by several divisions and senior officials. It’s unclear whether that occurred in this case.

While Paxton has said he decided to bring on outside counsel because he knows Paul, the agreement released Wednesday does not give Cammack independence from Paxton and requires him to conduct an investigation only as directed by the Office of the Attorney General.

The hiring documents Paxton released Wednesday include an employment agreement and job description, which Paxton said “legally authorized [Cammack] to act.”

Paxton’s office also released emails between Cammack and one staff member, in which the two discussed a draft of a hiring agreement. That staff member, Deputy Attorney General for Legal Counsel Ryan Vassar, is one of the seven employees who lobbed criminal allegations against Paxton.

Cammack has said that his work is still going on. Who even knows what that means.

All that is a lot, but there’s still more. The Chron finds some more oddities about Brandon Cammack and how he came into the picture.

While a contract released by the attorney general’s office explains how outside counsel Brandon Cammack came to be hired, it leaves questions unanswered about how the arrangement allows Cammack to be independent of Paxton, who is at the helm of the agency and signed the contract.

“They may very well be allowed to do it,” said Larry McDougal, president of the Texas Bar and a former prosecutor. “I’ve just never actually seen it … Thirty years of being a lawyer, and I’ve never had that come up.”

We’re off to a great start. Now we look at the meeting with Travis County DA Margaret Moore again, and the way that Paxton’s office came to be involved in this investigation that he wanted.

Some lawyers interviewed said Paxton could also have declined the case or referred it to another law enforcement agency. All said it’s unclear what part of the law Paxton leaned on when bringing on Cammack.

Paxton’s office has described Cammack as “outside independent counsel,” but in at least on subpoena, obtained by Hearst Newspapers, he is called a “special prosecutor.”

“I was very surprised to hear that he was appointed as a special prosecutor only because I, candidly, don’t know that the Attorney General’s office has the authority to do so,” said Chris Downey, a Houston-based criminal defense attorney who has been an attorney pro tem three times before. “I think that’s a point of concern and potential exposure.”

The contract released Wednesday by Paxton’s office shows that Cammack was hired to investigate but not prosecute. That differentiation could mean legal consequences for Cammack if a court later finds that he was acting without authority.

In July 2020, the Fifth Circuit Court of Appeals ruled that prosecutors aren’t shielded with immunity from lawsuits when they are performing investigative functions.

Attorneys interviewed also raised questions about the choice of Cammack, who graduated from University of Houston law school in May 2015, was licensed in November of that year and has been in private practice for about five years. He’s also the chair-elect of the Houston Bar Association.

“Normally, when you do bring on someone as a special prosecutor, you do so because you’re trying to tap into that person’s unique skill set,” Downey said. “I would be surprised given that he’s been a lawyer for five years that he has a defined skillset that they couldn’t find within the attorney general’s office.”

Everywhere you turn, more and more questions. Many more questions than answers, that’s for sure.

My previous blogging on this topic can be found here, here, and here. I’ll have a separate post on the Nate Paul side of things, because this is all Just Too Much.

The Trib also covered this topic, but the DMN had the most comprehensive story, while the Chron has been running down other angles as well. One more detail in all this is that Paxton’s contract with Cammack pays him $300 and hour. You know who else is supposed to get paid that much? The special prosecutors against Paxton in the Servergy case. The same guys who have been fighting Paxton, his army of cronies and minions from Collin County, and the Republican-dominated courts to actually get that pay, which Team Paxton et al have claimed is extravagant. I expect the rotting corpse of Irony to turn up any day now.

UPDATE: Damn, there’s a lot happening with this story.

Five senior officials in the Texas Attorney General’s Office accused their boss, Ken Paxton, on Wednesday of subverting his office to serve the financial interests of a political donor, according to an email obtained by The Texas Tribune.

The aides are doubling down on accusations they made last week to law enforcement — that Paxton had committed crimes including bribery and abuse of office — even as the second-term Republican says he’ll forge ahead as the state’s top lawyer under a fresh cloud of criminal allegations and as some in his party call on him to resign.

“It would be a violation of our own public responsibilities and ethical obligations to stand by while the significant power and resources of the Texas Attorney General’s Office are used to serve the interests of a private citizen bent on impeding a federal investigation into his own alleged wrongdoing and advancing his own financial interests,” the aides aides wrote in the email. “We urge you to end this course of conduct immediately.”

[…]

The damning Oct. 7 email was addressed to Paxton and his new First Assistant Brent Webster and sent by five of the same senior aides and whistleblowers — Ryan Bangert, Blake Brickman, Lacey Mase, Darren McCarty and Ryan Vassar— who reported allegations of criminal activity to law enforcement last week. Two of Paxton’s aides, including former First Assistant Jeff Mateer who reported him to law enforcement have since resigned.

Their concerns stem from Paxton’s hiring of a special prosecutor to investigate claims made by Nate Paul, an Austin real estate investor and donor, of alleged impropriety by federal and state authorities. But several subpoenas served by the prosecutor, the aides said in the email, were “related to private business concerns of Nate Paul” — and were not the subject of the “narrow criminal referral” he was appointed to investigate.

“This office’s continued use of the criminal process, in a matter already determined to be without merit, to benefit the personal interests of Nate Paul, is unconscionable,” they wrote.

They’re bringing the heat, I have to say. It really is mind-boggling what these top assistants are saying about their boss, and sharing with the press. It’s also easy to imagine that there’s more coming. In the meantime, John Cornyn gets on the Concern Train, on which he will Wait And See before drawing any conclusions. Better buckle in, John.

More details emerge about the latest Paxton allegations

The Chron advances the ball.

Best mugshot ever

The top state officials who staged a mutiny against Attorney General Ken Paxton warned that he was using his office to benefit campaign donor Nate Paul, an embattled Austin real estate investor.

Paul, a once high-flying businessman whose offices were reportedly raided by the FBI last year, gave Paxton $25,000 ahead of the attorney general’s hard-fought re-election battle in 2018.

The No. 2 official in the attorney general’s office, First Assistant Attorney General Jeff Mateer, put Paul at the center of allegedly illegal activities by Paxton in a text message sent Thursday. Mateer, who resigned Friday, joined six other high-ranking employees in accusing Paxton, the state’s top law enforcement officer, of abuse of office, bribery and improper influence.

“Each of the individuals on this text chain made a good faith report of violations by you to an appropriate law enforcement authority concerning your relationship and activities with Nate Paul,” Mateer wrote in the text message, which was obtained by Hearst Newspapers.

The group requested an immediate meeting with Paxton, but the attorney general said he was “out of the office” and asked them to email him with their concerns. The Austin American-Statesman, which first reported on the allegations against Paxton, published a letter the officials sent to the attorney general’s human resources office on Oct. 1.

Neither Paul nor his attorney returned calls or messages left on their voicemail.

Paxton said in a statement Sunday: “The Texas attorney general’s office was referred a case from Travis County regarding allegations of crimes relating to the FBI, other government agencies and individuals. My obligation as attorney general is to conduct an investigation upon such referral. Because employees from my office impeded the investigation and because I knew Nate Paul, I ultimately decided to hire an outside independent prosecutor to make his own independent determination. Despite the effort by rogue employees and their false allegations, the AG’s office will continue to seek justice in Texas.”

The uprising against Paxton crystallized when a special prosecutor he appointed, Houston lawyer Brandon Cammack, issued grand jury subpoenas last week targeting “adversaries” of Paul, a senior AG official told Hearst Newspapers.

The official who spoke with Hearst Newspapers said those subpoenas spurred the seven top deputies in the attorney general’s office into action. One of the signatories on the letter accusing Paxton, deputy attorney general for criminal justice J. Mark Penley, filed a motion in state district court in Austin to halt the subpoenas. The motion to “quash” them was granted on Friday, records show.

In filing the subpoenas, Cammack “represented that he was acting on behalf of the office of the Attorney General as a Special Prosecutor,” Penley’s motion said. “He is not properly authorized to act as a Special Prosecutor, and … has no authority to appear before the grand jury or issue grand jury subpoenas.”

See here for the background. The information about the special prosecutor appointed by Paxton who’s been issuing subpoenas that “target adversaries” of this Nate Paul character is what really made my hair stand on end. If there is any truth to that, then this is a massive violation of the AG’s office and I can see why his top lieutenants rebelled the way they did. Greg Abbott and Dan Patrick are quoted in the story issuing “this sounds bad but let’s wait an see” statements – which, in all honesty, is reasonable enough for now – but the pressure is going to be on them, too.

There’s more in the story about Nate Paul, who sounds like a typical “more money than brains or ethics” sort, and I’ll leave that to you to read. This is the other bit that had me going “hmmmm”:

Kent Schaffer, a special prosecutor in [the long-running financial fraud case against Paxton], said Saturday that the latest accusations, if they leads to charges, could imperil Paxton’s odds of securing any kind of deal to resolve the criminal case.

“We were trying to get this case resolved, but if this guy’s out committing crimes while he’s on bond, then it’s going to become an extremely serious matter,” Schaffer said. “I’m not saying that he has — I don’t know the specifics, (but if he has) then it’s game on.

“Maybe the people that reported him are not shooting straight, but I want to hear from both sides, if possible. We’re going to do what we can to investigate.”

Schaffer said he contacted the Texas Rangers on Saturday immediately upon hearing the news. He declined to comment on whether the agency mentioned any existing investigation on the matter.

Paxton has also been accused by his staff of accepting bribes in the past.

Those 2016 bribery allegations did not lead to charges, though they did give us all a momentary thrill. The idea that the special prosecutors in the current case against Paxton might be able to get some leverage against him from this scandal-in-the-making is also giving me a thrill. I should know better by know, but I can’t help myself.

The revelations over the weekend appeared to have shaken the agency, where Ryan Bangert, deputy first assistant attorney general and one of the seven officials who reported Paxton to the authorities, sent out a letter of reassurance to staff.

“I write to assure you that the executive team remains committed to serving you, this office and the people of Texas,” Bangert wrote. “Your work, your sacrifice, and your dedication to this office inspire us all.”

Jordan Berry, Paxton’s political adviser, said he resigned after news of the allegations broke.

Watch what the people around Paxton do. We could be in for a mass exodus. I will try to stay on top of things. The Statesman has more on Nate Paul, and there’s national coverage from Bloomberg and CNN.