World Class Holdings’ Nate Paul Avoids Jail in Austin Lawsuit

The notorious Nate Paul of World Class Holdings jumped through hoops to avoid a 10-day jail sentence.

The real estate tycoon was granted a temporary stay of sentence by the Texas Third Court of Appeals, just a day before sentencing procedures were set to begin, the Austin Business Journal reported. Travis County Judge Jan Soifer made the decision less than a week after making it clear she wanted Paul jailed for contempt of court.

Soifer found that Paul lied under oath, defied court orders and refused to reveal documents related to a lawsuit between Paul and Austin charity the Roy F. and Joann Cole Mitte Foundation. Yet, the World Class CEO and his team of high-profile lawyers argued the case enough to prolong the potential sentencing.

The attorneys’ strategy included filing an emergency motion for temporary relief with the Texas Supreme Court and Third Court of Appeals, the outlet said.

The emergency filing detailed six reasons why charges against Paul weren’t valid, including: He was sentenced without a “constitutionally required sentencing hearing,” and an allegedly sketchy $963,323 bank transfer to Paul was permissible because it came from an entity not involved in the case, the outlet reported.

Paul received a court order last June, requiring him to log any bank transfer of $25,000 or greater. He allegedly ignored that request on several occasions, including the $963,323 transfer, as well as a $100,000 payment to NBA player Avery Bradley, who has since filed an $8 million lawsuit against Paul.

Paul added lawyers David Gerger and Cynthia E. Orr to his legal team at the last minute, realizing Soifer’s intended ruling. The attorneys have a history of defending prominent figures in well-known cases, such as Gergen’s defense of Robert Kaluza – the on-site supervisor at the time of the BP, Deepwater Horizon oil explosion.

Paul has had a tumultuous few years, ever since his home and World Class offices were raided by the FBI in 2019. No criminal charges stemmed from the raid, but World Class has faced an onslaught of bankruptcies, lawsuits and foreclosures in recent years.

—Quinn Donoghue