TribCast: How does Nate Paul’s arrest affect Ken Paxton? - podcast episode cover

TribCast: How does Nate Paul’s arrest affect Ken Paxton?

Jun 09, 202332 min
--:--
--:--
Download Metacast podcast app
Listen to this episode in Metacast mobile app
Don't just listen to podcasts. Learn from them with transcripts, summaries, and chapters for every episode. Skim, search, and bookmark insights. Learn more

Episode description

In this week’s episode, we discuss the arrest of Austin developer Nate Paul, what it might say about Ken Paxton’s impeachment trial and whether it makes Paxton more vulnerable to criminal prosecution.

Transcript

This week's trip cast is sponsored by Texas State Technical College has Texas covered with ten campuses across the state. Students can learn the skills necessary to start a great new career. Learn more at TSTC dot edu and Texas BioMed pioneers and shares scientific breakthroughs that protect our communities. Health starts with science. Health Starts at Texas BioMed. Visit tx BioMed for more. Hello, and welcome to

the Texas Tribune trip Cast for June ninth, twenty twenty three. My name's Matthew Watkins, and I'm managing editor for News and Politics at the Tribune. And today we're going to talk again about the Kin Paxston impeachment proceedings, specifically the looming trial in the Senate. As each day passes, the case seems

to get more and more interesting. This week we learned that Tony Buzzby, the bombastic Houston lawyer who, depending on who you are, you might recognize him for representing Governor Rick Perry in his twenty fourteen corruption case, or maybe for angering his River Oaks neighbors by parking a World War two tank outside his home back a couple of years ago. He'll be representing Paxiston in the case

along with prominent defense attorney Dan Cogdal. On Wednesday, Buzzby and Cogdal held a fiery press conference in which Buzzby compared the House impeachment proceedings to a kangaroo court and promised that Paxiston will not be convicted by the Senate. Then on Thursday, we learned that Nate Paul, the Austin real estate developer at the center of the allegations against pastic was Paxixton, was arrested by the FBI.

Joining us to discuss this is Ross Garber, a lawyer who represents institutions in people facing government an investigation. His clients have included five US governors in an attorney general facing impeachment. Ross, thank you for joining us. It's good to be here. Thanks for having me. Yes, So, first, I want to talk a little bit about the news that most recently broke.

Nate Paul, this Austin developer, he's at the center of the allegations involving Kim Paxton was charged with eight felony accounts in federal court today, largely about making false statements to financial institutions. The allegations against him, do not mention Kim Paxson in any way. They focus on actions that took place in twenty

seventeen and twenty eighteen allegedly misleading mortgage lenders and credit unions. But the allegations against Paxton deal some with the FBI investigation related to this, and you know, basically questions and how Paxton may or may not have used his office to

get involved with the FBI investigation. This, of course happens as the Senate trial is pending, and I'm wondering ross what your reaction is to the news that this has happened, how this might play into you know, sort of the criminal courts compared to the impeachment case, that is that is moving pretty quickly against them. Yeah, and and and first let me say I represent nobody at all in you know, in these cases. You know, I'm

watching all of this from afar um. You know, I saw the news about the indictment today, and uh, and my initial reaction was that it'd be hard to believe that it was unrelated to the impeachment, and and my gut is it might relate to it, at least in terms of timing. If I were a federal prosecutor, and I saw this impeachment process going on.

I saw that there was going to be a trial coming up in the state Senate where um, somebody who I've been investigating, and you know, the reports are that the government has been invested gating uh this developer for years now. UM. If I saw reports that, uh that that the subject matter that I was investigating as a prosecutor was also going to be the subject of a Senate trial, that would concern me. I don't think I'd like to see uh, you know, key witnesses be you know, cross examined

or testify there. You know, that might accelerate how I how I approach things. So um, so I that was my initial reaction is that maybe the government accelerated their case against this developer because of the looming Senate trial.

Um. And you know my other reaction is related, which is, uh that it would seem to potentially affect how this Senate trial plays out because now there is a live federal criminal case, and any lawyer for any witness is going to say, hey, look, you know that is your first uh you know concern is you know, is a criminal case. I'm not you know, I practice in Washington, DC, and actually Connecticut. I don't

I'm not a member of the Texas Bar. I have taken a look at at Texas law and some things including immunity for witnesses in legislative proceedings, and there appears to be a pretty broad immunity provision which seems to say that if a witness is subpoenaed to testify compelled to testify in a legislative proceeding, and that witness has immunity at least with respective state state criminal prosecutions. And uh, you know that that also may you know, may play into things and

complicate things. Yeah, so that's an interesting thing. You say you found it very likely that this would be somehow related to the impeachment trial or the allegations against in Paxson, And what you mean from a timing standpoint that you could basically see a situation where the fact that this is moving in this political arena might cause the Department of Justice or you know, the US Attorney's office

to act in this way. Basically, I think about it if you're if you're a prosecutor, you've been investigating this case, you know, you're thinking about bringing charges, and then you see that there's going to be a very public Senate trial where you know, we're waiting to see what the rules are

going to be. But in most impeachment trials they're very rare. But in most of them, there's the right for the people involved to you know, bring in witnesses, subpoena witnesses, subpoena documents, crosses, amin witnesses. If you're a prosecutor, that's going to be a concern to you that that's all playing out, because that could potentially compromise your criminal case. And so yeah, you know, my gut was, you know, maybe the government,

the prosecutors accelerated things. You know, one thing I've been wondering about is we've seen politicians get in trouble with the federal government, you know, the the US Department of Justice for in Texas, of course. And one thing that I've always kind of heard is this idea that sometimes the Justice Department does not like to bring charges against someone you know, close to election, for example, to not wanting to fear interfere with the political process and things

like that. Impeachment, of course, is its own sort of political process. Is there any kind of concern there about the Department of Justice not wanting to get in the way of what's happening here in Texas. You know, in my experience, there is not that concern. In my experience, the you know, the Department of Justice and you know, I've seen these kinds of overlaps before, is not particularly sensitive about interfering with an impeachment proceeding.

It's exactly the opposite. It's their concern that an impeachment process is going to interfere with their criminal investigation. You're right, and you know, normally there's a sensitivity about federal prosecutors interfering with an election that generally hasn't in my experience,

carried over to impeachment proceedings. The other thing that just kind of popped into my head when we saw this happening recently is, you know, all of us who have watched, you know, the various investigations to the Trump administration, you know, in recent years, you know, we many of us kind of became the sort of armchair and analysts of legal proceedings and government investigations, and you know, there would always be this kind of suggestion that

the Department of Justice was charging someone to possibly kind of close the circle around the target of their investigation. And so one question I know that has popped into a lot of people's head is, you know, what vulnerability might this show to Paxxton criminally in the realm of you know, this person is at the center of the allegations being made against him by whistleblowers and things like that, Is there a reason to be concerned about an attempt to possibly flipmate Paul

or something like that as they might be pursuing something related to Paxixton. Yeah, look, I think one of Paxton's lawyers specifically raised that question, and and for sure, if I were representing Paxston, that's you know, that's what I'd be thinking. If I were representing Paul, That's what I'd be

I'd be thinking. That is you know very uh, you know, standard prosecutor tactics to take someone kind of lower down the food chain and then try to flip them against somebody uh, further up on the food chain, and what that can and that can benefit that person who's lower on the food chain by potentially limiting the number of charges they face or you know, potentially getting them a reduced sentence. So for sure, you know that could that could

be part of it as well. Okay, so let's talk a little bit about the Senate trial UM. And can I say one other thing actually just occurred to me, is is whether it's appropriate or not UM. I have seen this before where prosecutors will actually you know, have an outcome that they

prefer for that elected official. In other words, they might prefer, you know, if they if they see elected official that they believe is corrupt, they might actually prefer that that elected official not continue to serve in office any

longer. And again I've no reason to believe this is what's happening here, but it also wouldn't surprise me that the timing, you know, may with Paul, you know, may maybe a result to sort of you know, turn the screws on him and you know, see if he would flip before the Senate trial um to potentially impact the Senate trial kind of the opposite of what you're talking about a few minutes ago. Well, the other aspect here, and we can get into a little bit in a little bit about you

know, the rules that the Senate may set for this trial. We don't exactly know what that's going to look like, but you could see a situation where the people you know, sort of prosecuting this case before the Senate would want Nate Paul to be you know, testifying under O in that case. Now he's under you know, federal indictment. Does that complicate that goal or hope? Any Yeah, look it might complicate uh everything you see. You

know, I've read the articles of impeachment. Paul is all over lots of them. And if you're prosecuting the uh, the impeachment in the in the Senate, you may say, yeah, this is a this is a problem because we can't have Paul as a witness. If you're Paxton's lawyers, you may say the same thing. Look, you know, he's he could be a key defense witness. You know, the articles of impeachment mention him,

they make all these allegations against him. Uh. You know, if you're Paxton's lawyers, you may say, we should be able to call him, you know, have him testify, uh and uh and and make sure the Senate knows what his perspective on things is. And and they might say that you know, this indictment, especially if he's kept in custody, uh, you know, poses a problem. But the defense sure sure. All right,

let's pause for a second and hear from our sponsors. Lone Star College works for Texas providing real world workforce training in state of the art facilities to meet employers demands. Find out more at Lonestar dot edu and Texas Association of School Business Officials School Finance and Operations Professionals make public schools thrive. Find out more at TASBO dot org. All right, so, Ross, I want

to ask about these rules. There will be a Senate committee meeting on June twentieth where they will kind of lay out how this trial in the Senate will work, and I think a lot of us are waiting for that moment to kind of see what happens. You, as someone who has been through these cases, been through I would imagine different types of impeachment proceedings. What are you watching for? What do you want to know about the decisions they make

on that June twentieth meeting. Yeah, and let me say this, impeachments and especially impeachment trials are shockingly rare. They almost never happen um and so I'm very interested to see what the rules are because there's it's not like court where there's a standard set of rules, uh, or or even you know, typical legislative bodies where there's a typical set of rules. Here there is

not a typical set of rules, and so who knows. Um, I did two impeachment trials just last year, but that was that was very, very unusual, and so uh for the rules, there's there's a lot that I'm I'm looking to see. Uh. The one of the first things I'll be interested in is whether Paxton is entitled to any discovery. So in a in a regular court case, criminal or civil, uh, the parties get pre trial discovery so that you know, things are pretty well settled before trial.

There have to be certain disclosures made, let's say, in a criminal case, certain disclosures made to a criminal defendant by the government ahead of trial. In a civil case, the parties get to take depositions before trial. And so I'll be very interested to see if there's any provision for pre trial discovery. And I I've seen it both ways. Typically I guess there's there. There is limited if we can say typically you know, there is limited

discovery and things kind of you know take place during during the trial. On the other hand, on the federal level. In the Clinton impeachment trial, there actually were a limited number of depositions before trial, and there was no testimony at the actual trial in the Clinton impeachment trial, and as many of us remember, there were there was no testimony at all in either of the Trump impeachment trials. So I'll be the first thing I'll be interested in is

is there any discovery? Is the is the House is going to have to turn over their investigative materials or some investigative materials, uh to to Paxson's lawyers. That's going to be a big issue. Uh. Then the second thing is with respect to testimony. Paxson's lawyers have said that they they didn't tend to uh to have scores of witnesses testify at trial. And like I just alluded to, it's in some impeachment trials, there is testimony. In some

impeachment trials, UH, there is not testimony. So those those are two big things. UM. But UH, but you know there's more that you know. The Senate here is has broad discretion, uh to to to set their own rules. UM. I'll give you another example at the federal level, UH, in impeachment trials of judges, the whole Senate doesn't have to sit and listen to all the evidence. There's a committee that's designated of senators that sit and they listen to the evidence, and then that committee makes a

recommendation to the full Senate. I have no reasonably believe that's going to happen in Texas, but just it gives you a sense of, you know, that how uncertain the playing field is. Sure, you know, this is an interesting case because those of us who have watched the Texas Senate for a long time pay a lot of attention to the Lieutenant Governor Dan Patrick, who is a you know, a very high profile figure in Texas and known by some outside the state as well. And what we really see is the kind

of complete control he wields over the Senate. You know, no bill gets through without his explicit approval, and if if senators cross him, you know, even on one of his priorities, they can kind of see the consequences of that on their own bills for an entire legislative session. And being like that, he will be presiding over this trial, and you know, has kind of talked about being an impartial observer in all this and has really talked

up the idea of being a judge in the senators of the jury. But I guess I wonder what you think about the sort of presiding officer of a of a chamber in these trials, the role they play. You know, what it might mean to have someone like that, a figure like that, presiding over this trial in particular. So it's a great question, you know. The first thing that comes to mind is that in the Senate trials that I've been involved in, and certainly on the federal level, the presiding officer

has virtually no power at all. The presiding officer basically doesn't do anything. Chief Justice Rank Whist, after he presided over the Clinton trial, actually noted, I'm paraphrasing. I think he said that he, uh, he didn't do much and uh and he did that well and and famously, uh when when Chief Justice rank Whist at the beginning of the Clinton trial, was getting a tour of the Senate chamber and where he would sit, he asked the question, you know, how do I turn on my microphone? And he

was told, you don't. We will decide, Uh, the senators will decide when we need you, and we'll turn on your microphone and so UM, it's it's actually not typically like a court where the presiding officer acts as

a judge and the senators act as jurors. In fact, one of the maybe the only, but certainly one of the few objections UH in a federal impeachment trial that was made was actually made in the Clinton impeachment trial where one of the one of the lawyers in the trial referred to senators as jurors, and Senator I think was Arl Inspector objected and said, you know, we

are not jurors. And he asked the Chief Justice to so find and direct the u and direct the lawyers to not refer to the senators as jurors. And Chief Justice rank wast agreed. He said, the senators are not jurors. And typically that's that's true. The this is a court of impeachment, and and I think it's more appropriate to consider the senators as both jurors and

judges. Um. And I guess one last thing on that often in impeachment trials it'll be up to the presiding officer to deal with objections initially, but then senators will be able to overrule to provide presiding officer and so it's something

to look for in the rules to see how that's handled. Interesting. I mean, that's it's that's so funny to hear, just as someone who watches the Texas Senate, because the idea of the senators overruling the lieutenant governor is not something you see a lot in in the Texas Capital at least, so

that will be a curious thing to watch. I mean, so, I mean, what you're talking about here is a more political process, right, And I'm wondering how that affects the representation you know, on both sides, people prosecuting the case and people you know representating a senator Attorney General Paxton, is your strategy different than in you know, your typical kind of court case And if so, how Yeah, no, it it definitely is it a

you know, people have said that impeachment is a political process, and that is that's long. It's true. It's bound by the Constitution, it's bound by legislative rules, and there'll be rules of procedure here, but it is very very much a political process. And U and it's happening in a forum where people are accustomed to practicing politics. You know that it's happening in the Senate Chamber of the Senate. Senators are are used to being politicians there.

This Paxixton is certainly a politician. You know, these are people who are used to dealing with each other as politicians. I did an impeachment once where you know, we'd have testimony for the day, and then at the conclusion of testimony, right in the hearing room, there'd be podium set up and both sides would do press conferences sort of summarizing and analyzing and spinning the day's testimony. Obviously, don't see that kind of thing in court. One.

One thing I'll be interested to see in the rules is whether there is a prohibition on ex partey communications, meaning whether either Paxton or the House managers or the House lawyers can have interactions with the senators about the impeachment outside the proceedings and and kind of one on one I have, you know, I have impeachments, seemed that kind of thing, so that, you know, things play out in the daylight, but then kind of behind the scenes, everybody's

like talking. Everybody in the the you know, the house managers or you know, are talking. It happens on the federal level. The House managers talking into the senators. The fence lawyers are talking to the senators, you know, deals are being discussed, and so it will be interesting to see if there is a prohibition saying you can't do that, and the senators are going to act or you know, like a you know kind of you know,

like a court. I'm going to get really in the legal leads here just for a minute, even more so than we already have, because you made a point on your Twitter account a few days ago that really interests me. It was around the idea of how Paxton's kind of top deputies, the current ones, not the ones who blew the whistle on him and eventually left, have taken a leave of absence from the agency in order to work on

Paxson's defense essentially, and they're essentially part of his legal team. Of course, part of this trial is likely to be about the way that Paxston ran this agency and how he used the agency for you know, his possible benefit

or for the benefit of a particular person. Nate, Paul, I wonder, and you raised the specter of attorney client privilege privilege there, and I thought it was a very interesting one, and could Paxton make the argument that his staffers that are now on his team couldn't be compelled to a deposition or or a you know, to testify in this because they are essentially working as his lawyers right now. Yeah, so it presents a weird dynamic. So

that and there are two time periods. You know, there's the time period where they are working. It looks like they're working or him in his private capacity as a private citizen now and you know, and they're not being as I understand it, paid for by the state. So to me, that looks a lot more like your sort of typical attorney client relationships. So I'm a private lawyer. If I represent you in something and we have confidential communications,

those are protected by the attorney client privilege. So with some exceptions, I can't be as your lawyer subpoena to testify about those. So that's period one. But the previous period, these folks were working in the Attorney General's office that were being paid for by the state, and it's my understanding, weren't representing Paxton in any capacity. I think I think there's the argument that communications and did those circumstances would be protected by the attorney client privilege, it

would be harder to make. There may be other privileges that apply investigative privileges, and so for the attorney client privilege argument would be would be tougher to make. Now these would be covered by these issues would be covered by state law, and laws very state to state to state. I'll not One quick overlay is that under federal law, which I mentioned this in my uh in

my Twitter thread, federal law. There are cases going both ways on this, but most courts say that a lawyer paid for by the public for a public official, uh, those communications, even if they're confidential in the context of a criminal investigation, they don't get the attorney client privilege. This court

going the other way in a case that I argued. But um. But so, you know, even if these lawyers were talking to Paxton back when they worked in the office and he was considered, you know, their lawyer, there may still be questions about whether whether privilege applies. And you know, at least in the first instance and maybe probably honestly in the last instance, these are going to be decisions made by the Senate, by the presiding

officer, and ultimately by the senators, and it could get tricky. Yeah, I want to ask you a little bit about the argument that Paxiston's lawyers made this week when they were kind of introduced themselves. It aligned with what some of the opponents of impeachment said in the House vote, which was essentially that House investigators conducted their inquiry in secret. They started kind of investigating him in March. We didn't find out about it until late May on a Wednesday.

The articles were recommended by a general investigating Committee on Thursday, and Paxson was impeached on a Saturday, and there was really not any chance for Paxixton to make his case or explain himself. And they argued, you know, there was no due process. Paxson's lawyers called it a kangaroo court earlier this week. How unusual did that process of getting to impeachment look to you? I mean, is there anything to that argument about the kind of lack of

due process here? Well, so, in my experience, it was very quick and very unusual in that respect. But because impeachments are so rare, you know, it really is hard to say, oh, this is you know, this is typically the way it's done. This is not typically the way it's done. Andrew Johnson was the first president to be impeached, and I think the impeachment proceedings in his case at the House lasted maybe three days,

So that was an incredibly quick process. Most of the state impeachment proceedings I've been involved with have lasted much longer, and and due process arguments are are sometimes make made. I've I've made them when I represented officials who've been subject to impeachment proceedings. I've sometimes made due process arguments. In one state, I actually got a judge state judge to enjoin the impeachment proceedings based on the argument that the House wasn't providing due process. But um, I think

that in that respect, the toothpaste is probably out of the tube. The impeachment process happened, the vote happened, and now we're a trial in the Senate um and you know senators, you know, they can vote however they want for whatever reason they want, and be some will say how we're we're taking the process than the House into account and how we vote in the Senate. I'm not sure why they would say that, because, uh, you

know, the Senate's running its own process and you know the senator. Senators can insist on, you know, whatever level of proof they want in the Senate. So I don't I don't think right now that there's much there's much room for a due process argument with respect to the House. Is that largely

true just for this process in general? Like, is this pretty isolated from court intervention and that it like basically is it is it okay for the House and the Senate and really now the Senate to kind of make their own rules and go through those rules and how they vote determines Paxiston's future or are there opportunities to step in and say, you know, whether it's due process or something else, they're not following the law here. Yeah. So, so

court fights related to impeachments and impeachment trials aren't unprecedented. And it's going to depend on the strategy that you know, Paxiston's lawyers want to pursue. If they think they have the votes for an acquittal, then they you know, presumably wouldn't waste their time and run to chord. But uh, you know, again there it depends on the federal level. The Supreme Court has basically said that with the respect of federal impeachments. They don't touch them. They

considered a case involving a judge. You know, I mentioned that committee procedure where the Senate, the US Senate said they weren't all the senators weren't going to sit there and listen to all the testimony, and they assigned a committee to it. Federal judge said, wait, that's not okay. The constitution says that the Senate tries the impeachments impeachments, and that federal judge went to court and the Supreme Court ultimately said, you know what, the Senate gets

to decide. It's up to the Senate how impeachment trials are run. They get complete authority to decide. So we're not getting involved. I've had other cases where courts have been involved, have gotten involved the state court case. State courts they have gotten involved in impeachments in in a case I wasn't involved in just a few months ago, involving the Philadelphia District attorney, a state

judge. They are actually enjoined house impeachment proceedings. So it's going to depend on you know what, if the Texas courts get this kind of issue. You know what, the Texas courts decide to do it. Yeah, all right, well, we will all eagerly await what the Senate and possibly the Courts decide here in the future. Ross, thank you so much. This

has been a very helpful conversation and helping elucidate this. Thank you for joining us, Thanks for having me all right, and thank you to our producer Justin and thank you to our sponsors Texas State Technical College, Texas BioMed, Lone Star College, and the Texas Association of School Business Officials. We'll talk to you'all next week here from Eric Johnson, Brad Buckley, Will Hurd, Cecil Richards, and many others at the twenty twenty three Texas Tribune Festival,

happening September twenty first through the twenty third in Austin. Join us for a program full of big conversations headlined by names you know and others. You should learn more at Tribfest dot org.

Transcript source: Provided by creator in RSS feed: download file
For the best experience, listen in Metacast app for iOS or Android