Businessman at center of Ken Paxton's impeachment pleads not guilty to federal charges

An Austin real estate developer at the center of state Attorney General Ken Paxton's impeachment has pleaded not guilty to charges of making false statements to banks that loaned him more than $170 million.

Nate Paul waived his scheduled arraignment before a U.S. district judge in Austin, according to court documents posted Friday.

Paul figures heavily in 20 articles of impeachment filed against Texas' top law enforcement officer. Paxton is accused of abusing his power and accepting bribery to help Paul, who gave the Republican a $25,000 campaign donation in 2018.

More: What could Austin real estate developer Nate Paul's federal indictment mean for Ken Paxton?

Texas House investigators have said Paxton received an extensive home remodel that Paul funded in exchange for Paxton using the attorney general's office to intervene in legal matters involving the real estate developer.

There is no reference to Paxton in Paul’s indictment, which accuses the developer of making false statements to multiple banks in 2017 and 2018. But one of the banks later received a subpoena, issued in person, by an attorney whom Paxton hired as an “outside independent prosecutor” to pursue complaints Paul made after the FBI raided the businessman's offices.

Paxton has denied wrongdoing, and his impeachment trial in the Texas Senate is set to begin Sept. 5.

This article originally appeared on Austin American-Statesman: Austin developer Nate Paul pleads not guilty to federal charges