During a second day of trial in the corruption case against Texas Attorney General Ken Paxton his former assistant on Wednesday told a courtroom the AG’s involvement with Austin real estate developer Nate Paul had become a red flag.
“I believe in the truth,” Jeff Mateer said. “I wanted to discuss with him (Paxton) why he was involving himself with Nate Paul and his companies.”
Paxton’s attorney Tony Buzbee accused Mateer of altering AG letterhead removing Paxton’s name from it in communications with other like-minded individuals and engaging in actions disloyal to the AG.
“You were staging a coup weren’t you?” Buzbee asked.
“Absolutely not!” Mateer responded.
Mateer served as Paxton’s first assistant attorney general whose responsibility was running the AG’s office.
Mateer said also disturbing was an extramarital affair that Paxton had with a woman. Paxton confessed to the affair in 2020 to Mateer and other AG officials, apologizing for it during a meeting that Mateer described as “emotional.”
However, Mateer added that Paxton continued with reckless behavior and that he (Mateer) had tried to reason with and protect his boss Paxton.
Buzbee sought to portray Mateer as misinformed, assuming things from hearsay for which he had no proof, and that he failed to candidly communicate his concerns to Paxton. In addition Buzbee contended that Paxton as AG had a right to sign a contract calling for an investigation of federal officials who Paul claimed were unlawfully harassing him.
Mateer resigned in October 2020 days after he and other AG officers went to the FBI and reported wrongdoing by Paxton.
On May 23 the Texas House of Representatives voted 121-23 to impeach Paxton and send the case to the Senate suspending the attorney general from his duties pending the outcome.
Paxton faces 20 articles of impeachment including disregard for public duty, making false statements, bribery and obstructing justice, conspiracy to defraud, dereliction of duty and violation of public trust. At the center of the accusations is Paxton’s relationship with an Austin real estate developer Nate Paul. Paul has been a political donor for Paxton a Republican. Paxton allegedly accepted favors from Paul including renovations to his residence and a job for a woman with whom Paxton was having an extramarital affair.
Among the charges were that Paxton sought revenge against employee whistleblowers who reported his alleged improper actions including termination of the employees and impugning their reputations.
The impeachment case is unique for the impact it could have on the Republican Party in Texas and its party-dominated Senate. In addition Paxton’s wife Angela is a Texas Senator who will have no vote to convict or acquit her husband but who will sit as a member of the Senate Impeachment Court.
In 2020 Mateer went to FBI and the U.S. Dept. of Justice (DOJ) as a whistleblower with others to accuse Paxton of an improper relationship with Paul in which he alleged that Paxton was misusing his office to reward Paul, a campaign donor to the Republican Paxton.
Paul was charged in an eight-count federal indictment in June of 2023 alleging federal crimes in 2017 and 18. Whistleblowers said in return for an opinion from Paxton halting foreclosures of Paul’s properties under pandemic rules, Paul donated $25,000 to Paxton’s campaign, remodeled his house and provided a job to Paxton’s mistress Laura Olson.
Last July the Texas Supreme court denied an appeal by Paul to reverse a judgement against him in the case.
Paxton is also accused of directing employees to intervene in a 2018 lawsuit filed by directors of the Roy F. and Joann Cole Mittee Foundation, a quality of life charity nonprofit. The Mitte Foundation invested millions in Paul’s World Class companies in 2011 and then in a dispute over getting access to Paul’s records and getting their money back sued Paul in 2018. In July of 2019 according to KXAN the parties reached a settlement agreement to have World Class buy Mittee’s interest in the companies for $10.5 million.
Prosecution attorneys said the settlement amount Mittee got was “lowball.”
Thus, Paxton allegedly intervened in the lawsuit against the Mittee nonprofit and produced what amounted to legal consultation (opinions) to halt the foreclosures of Paul’s properties.
During Wednesday's session Hardin had Mateer read out loud a 2020 memo in which he said he was concerned about Paxton’s “personal involvement” with Paul and that AG division attorneys should instead handle such matters.
“The (AG) office was acting on behalf of one person (Paul),” Mateer said. “I knew that he (Paul) was a campaign donor.”
“Was this to the disadvantage of public citizens?” Hardin asked.
“Absolutely!” Mateer responded.
Mateer said Paxton had promised him he would not have any more dealings with Paul but over time it became clear he was not honoring the promise.
Mateer said Paxton became angry when staffers opposed his desire to hire an outside attorney Brandon Cammack, to investigate a complaint from Paul on the conduct of federal authorities who raided his home in 2019.
Paxton hired Cammack anyway.
According to the Austin-American Statesman Cammack allegedly represented himself as an AG employee and served a grand jury subpoena to a bank.
Mateer said refusal by an AG staffer Mark Penley to sign a contract hiring Cammack caused Paxton to lose his temper with Mateer in a phone conversation.
“He (Paxton) was upset,” Mateer said. “This was the first time he raised his voice. He wanted me to talk to Penley. I said I would not. Penley was a 20-year (AG) employee.”
Mateer said Paxton’s behavior he believed violated AG policies and was likely unlawful.
“Cammack was being hired to do something not in the interest of the state,” he said.
During cross examination Buzbee asked what crime Mateer told the FBI he thought Paxton had committed. Mateer said at first he thought Paxton was being blackmailed.
“You thought someone was committing a crime against him (Paxton)?” Bizbee asked.
“I wanted him to come clean,” Mateer said. “It didn’t make sense to me.”
“Sometimes assumptions are wrong,” Bizbee said.
Bizbee asked Mateer if he knew how much in campaign funds Paxton had raised for election and exhibited a document. The total was $6.7 million. The amount from Paul ($25,000) amounted to .37% of the total.
“That’s what the document says,” Mateer said.
Mateer added that the AG department was sensitive about scrutinizing campaign donations.
“You jumped to a lot of conclusions fast,” Bizbee said, “if you had just talked to him (Paxton).
“I did!” Mateer said with a note of irritation.
Bizbee called Mateer a “political appointee” not an elected official like Paxton who had a 4 million votes of the people, that Paxton was the boss and not Mateer.
“If he (Paxton) didn’t trust you, you’re out the door right?” Bizbee asked.
Mateer agreed.
“You’re telling us the AG has to get permission from his staff (to hire outside counsel)?” Bizbee asked.
Mateer indicated that a process a system of checks and balances in the AG office had been created by the Legislature that needed to be honored.
“It was very rare that the AG (Paxton) signed contracts,” Mateer noted.
Mateer said the whistleblowers considered hiring their own lawyer using a $50,000 allocation before they went to the FBI, but decided against it.