Ken Paxton Trust Invested $600,000 in Convicted Fraudster Business
Previously unreleased records from the 2023 impeachment investigation of Texas Attorney General Ken Paxton show that a blind trust set up for him and his wife, state Sen. Angela Paxton, provided a $600,000 cash infusion to a construction materials business owned by convicted mortgage fraudster Scott Sherman. ProPublica and The Texas Tribune report that Wildcatter companies subsequently wired tens of thousands of dollars to the Paxtons as the attorney general faced impeachment and environmental complaints arose over a company plant.
Key points
- A blind trust established for Ken Paxton and Angela Paxton provided a $600,000 cash infusion to a business owned by convicted mortgage fraudster Scott Sherman.
- Impeachment investigation records reveal that the trust was not fully blind, with Ken Paxton discussing certain investments with the trust manager.
- Wildcatter companies wired more than $83,000 to the Paxtons between January and June 2023.
- Angela Paxton served on a Wildcatter advisory board and voted for a Senate environmental bill that affected oversight of concrete batch plants.
What Happened
A blind trust established for Texas Attorney General Ken Paxton and state Sen. Angela Paxton provided a $600,000 financial boost to a construction materials business owned by North Texas home builder Scott Sherman, according to previously unreleased records from the attorney general's 2023 impeachment investigation reviewed by ProPublica and The Texas Tribune.
Sherman completed a federal prison sentence for mortgage fraud four years before receiving the cash infusion. The financial backing helped fund the expansion of enterprises including Wildcatter Sand Services and Grayson County Sand and Gravel, which acquired a sand mine in Denison and a concrete plant in Gunter.
Who Said What
Ethics experts criticized the financial association, with former chief ethics lawyer for President George W. Bush Richard Painter stating that the attorney general should not be dealing with a convicted felon. Washington University law professor Kathleen Clark noted that the Paxtons claiming itemized losses from the companies on their tax return demonstrates that the trust was not truly blind.
A spokesperson for Angela Paxton stated that she was not aware of Sherman's criminal history, that her advisory board role had no decision-making authority, and that she was unaware of complaints or violations against Wildcatter. Matt Welch, a spokesperson for Angela Paxton, defended her vote on the environmental bill by saying it was needed to stop a small group of activists from wasting taxpayer dollars through frivolous complaints.
Context
Records showed that Ken Paxton and trust manager Chip Loper discussed certain investments, conflicting with the premise of a blind trust. Ethics experts noted that such involvement would also run afoul of U.S. Senate rules, which require senators with a blind trust to have no knowledge of its investments.
While serving on a Wildcatter advisory board, Angela Paxton voted for legislation allowing the Texas Commission on Environmental Quality to ignore residents after more than five unsubstantiated complaints in seven years. Bank statements showed that Wildcatter companies wired the Paxtons' trust 15 payments totaling more than $83,000 between January and June 2023, coinciding with the period of the impeachment proceedings and the environmental legislation vote.
What Happens Next
Ken Paxton is currently running for a U.S. Senate seat against Democratic state lawmaker James Talarico following his acquittal by the Legislature during his 2023 impeachment trial.
Because the records collected by impeachment investigators ended in June 2023, it remains unclear whether Wildcatter payments continued after that date or how the funds were accounted for by the companies.
Why it matters
Impeachment records reveal that a blind trust for Ken and Angela Paxton invested in a convicted fraudster's business and received wire transfers during the attorney general's impeachment.
What we know
- A blind trust set up for Ken Paxton and Angela Paxton provided a $600,000 cash infusion to a construction materials business owned by convicted fraudster Scott Sherman, according to ProPublica and The Texas Tribune.
- Wildcatter companies wired the Paxtons' trust 15 payments totaling more than $83,000 between January and June 2023.
- Angela Paxton served on a Wildcatter advisory board and voted for a Senate environmental bill affecting complaint processes for industrial sites.
What remains unclear
- It is unclear whether Wildcatter payments continued after June 2023 because available records from the impeachment investigation ended then.
- It remains uncertain how the payments from Wildcatter companies were accounted for on the companies' books and whether funds were used for legal representation.
- It is uncertain whether Ken Paxton knew of Sherman's conviction prior to the investment.
