TX Supreme Court denies Nate Paul relief on contempt of court

AUSTIN (KXAN) – The Texas Supreme Court on Friday denied a petition for relief filed last year by embattled real estate investor Nate Paul in his multimillion-dollar legal saga against an Austin-based charitable foundation. The denial lifts a stay on a Travis County district court’s order of contempt against Paul, which carried a 10-day jail sentence, according to court documents.

Paul, 37, and companies under his real estate investment business World Class Holdings, have been in a legal tug-of-war for years against the Roy F. and Joann Cole Mitte Foundation. The Mitte Foundation invested millions in Paul’s real estate enterprise in 2011. Years later, after a dispute over financial records and recouping their money, the foundation sued Paul.

The Mitte Foundation lawsuit tied Paul to allegations against Texas Attorney General Ken Paxton that played a role in Paxton’s impeachment at the Capitol. Paxton was accused of improperly using his office to benefit Paul, a campaign donor, but was ultimately acquitted in a Senate trial.

Texas Supreme Court denies Nate Paul appeal against Mitte foundation

The Supreme Court lifting the stay on the order of contempt could open the door for Paul to be put in jail.

Ray Chester, a McGinnis Lochridge attorney representing the Mitte Foundation, said he and his client are “gratified and we are happy that Mr. Paul is not going to be able to get away with lying to the court and violating the injunction, and we are just happy justice prevailed.”

Supreme Court denial

The Supreme Court’s denial on Friday traces back to a decision in the case on March 31, 2023, in Travis County. That day, District Court Judge Jan Soifer entered an order sentencing Paul to 10 days in jail for six counts of criminal contempt. Soifer found Paul violated an injunction that required him to preserve property and report money transfers over $25,000, filed a false sworn report and committed perjury at two hearings, according to court records.

Soifer initially hit Paul with eight counts of contempt, but the Third Court of Appeals vacated two of them, according to a court motion.

Following Soifer’s decision, on April 3, 2023, Paul filed an emergency petition for writs of mandamus and habeas corpus in the Supreme Court. Within days, the court granted Paul’s emergency motion and issued a stay on Soifer’s contempt and commitment orders.

Paul had been told to report to the Travis County Jail on April 10, 2023, at 10 a.m., according to his petition.

Paul asked the Supreme Court to vacate the remaining six counts of contempt, arguing they violated his “basic constitutional protections” and there was insufficient evidence, according to his motion.

The nine-member Supreme Court denied Paul’s motion, with Justice Jane Bland filing an opinion dissenting from the denial that was joined by three other justices.

It is not clear what impact the high court’s denial will immediately have on Paul. KXAN has reached out to attorneys for Paul and Soifer’s court, and we will update this report when more information becomes available.

Nate Paul federal bank and wire fraud trial reset to November

Separate from the Mitte Foundation case, federal authorities indicted Paul on 12 counts of making false statements to lending institutions and wire fraud. Those charges are related to his real estate business and do not involve Paxton or the Mitte Foundation. The federal trial is scheduled to begin Nov. 6, according to court filings. Paul pleaded not guilty to all counts against him.

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