Texas Attorney General Ken Paxton and his wife, state Senator Angela Paxton, invested $600,000 into a business run by a man convicted of fraud.
The Texas Tribune reports that the Paxtons gave the cash to a construction materials business run by Scott Sherman, a home builder who pleaded guilty to mortgage fraud in 2014, through what was presented to the public as a blind trust. In reality, the Paxtons’ business activities were not shielded, as should be the case in a blind trust.
According to the Tribune, which cited previously unreleased records from Ken Paxton’s 2023 impeachment investigation, Sherman’s companies sent the Paxtons thousands of dollars while they were facing mounting tax debts. Ken Paxton was investigated by the Texas state legislature and was eventually acquitted. Now he’s Texas’s Republican nominee for the U.S. Senate in a tight race with Democratic challenger James Talarico.
Paxton’s business dealings fly in the face of his public statements. He said in a news release last year that “in Texas, we fight fraud head-on and will not rest until every last corrupt actor is brought to justice.” Ethics experts told the Tribune that his activities undermine his position as Texas’s top law enforcement official.
Richard Painter, a former chief ethics lawyer to President George W. Bush, said he thought Paxton would be smarter than this. Referring to people like Sherman, Painter said, “They’ll pay out their friends while they’re not paying their taxes, run up debt. But the question is, why is the attorney general of Texas dealing with those kinds of people?”
Painter added that he thought “the attorney general of Texas would have the good sense not to be dealing with a convicted felon.”
Angela Paxton filed for divorce from Ken last year on “biblical grounds,” referring to her husband’s infidelity. Ken Paxton has continued to deal with shady characters since his investment in Sherman, spending New Year’s Eve 2024 partying with his mistress and two campaign donors who both fled the U.S. from health care fraud charges.