Nate Paul Avoids Jail Time

Embattled Austin developer Nate Paul continues to jump through hoops to avoid jail time, as the World Class Holdings CEO and his legal team navigate the slew of legal challenges stacked against him.

The Texas Supreme Court issued a stay on a previous order for Paul’s jail commitment, effectively pausing a 10-day jail sentence for contempt of court that Paul was set to begin serving on April 1, KXAN reported.

The jail sentence came from a ruling by Travis County district judge Jan Soifer, who found Paul in contempt for multiple violations in a civil case involving money owed to the Mitte Foundation, a charitable organization. The foundation sued Paul, seeking to recover millions of dollars invested in his real estate ventures.

Among the allegations against Paul was a failure to report a $100,000 transfer to an unnamed NBA player and violation of a court injunction requiring disclosure of transfers exceeding $25,000. Soifer’s contempt order detailed several instances in which Paul allegedly misled the court, including providing false testimony and withholding bank records.

Paul’s legal team had appealed the order to the Texas Supreme Court, which initially denied relief in a split decision on March 15. However, the latest decision to issue a stay on the jail commitment provides Paul with temporary reprieve pending further court action.

The case has garnered attention not only for its legal intricacies but also for its connections to Texas Attorney General Ken Paxton, who faced impeachment in 2023 over allegations of accepting bribes from Paul in exchange for legal favors. Paxton was ultimately acquitted.

In a dissenting opinion, Supreme Court Justice Jane Bland, along with Chief Justice Nathan Hecht and justices John Devine and Brett Busby, expressed concerns over the handling of the contempt charges. They argued that allowing a financially interested party, such as The Mitte Foundation, to prosecute Paul could potentially violate his due process rights. The National Association of Criminal Defense Lawyers echoed those concerns, emphasizing the importance of unbiased prosecution and proper notice of charges.

Meanwhile, Paul is grappling with federal charges unrelated to the Mitte Foundation case. He has been indicted on 12 counts of making false statements to lenders and wire fraud, with a trial scheduled for November. Paul has pleaded not guilty to all charges.

—Quinn Donoghue