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SOUTHEAST TEXAS RECORD

Saturday, May 18, 2024

Attorney General office whistleblower seeks sanctions, contempt charges in private trustee litigation

Lawsuits
Kenpaxton

Paxton | file photo

A former staff member of the Texas Attorney General’s office has asked a state court to hold a real estate partner in contempt of court for allegedly failing to repay funds to a trust he oversees.

Blake Brickman, who sued the office of Texas Attorney General Ken Paxton, wants the District Court of Travis County to not only hold John S. Robison in contempt but to also sanction him with attorney fees.

Robison served as the special trustee of FG Trust, a Delaware entity established in 2015.

“Despite his actual knowledge of the court's orders, Robison has wholly ignored his obligations,” wrote Brickman’s attorney Joshua Romero in his pleadings to the court. “Further, he has failed to even respond to the plaintiff's demand letter requesting compliance with the orders. Consequently, pursuant to the plain language of Rule 692, Robison should be held in contempt for his blatant disregard of the temporary restraining order and temporary injunction.”

Underlying the contempt request is a lawsuit filed by Brickman against Robison alleging that he deceived FG Trust by improperly investing $1 million in an escrow account for a real estate venture.

Robison, who did not respond to requests for comment, is accused of failing to produce an accounting ordered by the court and to return the monies after agreeing to cancel the deal.

“Plaintiff did receive some documents from Robison’s co-defendant, Walter Berkeley Fondren,” wrote Romero in his motion for contempt and sanctions. “However, according to Fondren’s lawyer, only Robison (not Fondren) has access to the bank records and the ability to perform the required accounting.”

James R. Brickman, father of Blake Brickman, is the CEO of Green Brick Partners, which is a home builder and land developer consisting of eight brands across four states.

When asked how FG Trust is related to Green Brick Partners, Romero, Brickman’s attorney, did not respond to requests for comment.

Brickman claimed whistleblower status after he was fired from Attorney General Paxton’s office in 2022. The whistleblowers’ allegations are being used to conduct impeachment proceedings against Paxton. 

However in June 2020, the AG's office issued a 365-page report to refute the whistleblower claims.

On May 27, the Texas House voted 121-23 to impeach Paxton who now faces a trial in the Texas Senate for alleged bribery, abuse of office, and obstruction charges.

"The actions of Defendants constitute a primary violation of the Texas Securities Act, as they sold or offered to sell securities by means of an untrue statement of a material fact or an omission to state a material fact necessary in order to make the statement made, in light of the circumstances under which they are made, not misleading in violation of the Texas Securities Act. As such, Defendants are liable to Plaintiff for a primary violation of the  Texas Securities Act,"  Romero wrote in Brickman's Nov. 28, 2022 lawsuit.

Brickman is listed as the manager of 2112 Rio Grande, an LLC in Austin registered with the state Comptroller of Accounts, according to records obtained by the Southeast Texas Record.

Since 2021, Brickman has also been listed as secretary, treasurer, then president of a Texas limited liability company that owns the current headquarters of the Cicero Institute, a policy organization founded by Austin-based technology investor Joe Lonsdale, and which reported revenues in 2021 of more than $13 million.

According to tax documents obtained by the Southeast Texas Record, the Cicero Institute qualifies for tax exempt status as a 501(c)3.

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