Texas Attorney General Paxton Appears to Violate Federal Ethics Law

Texas Attorney General Ken Paxton appears to have violated federal ethics law in ways when filing recent disclosures of his assets and liabilities, according to a review by ProPublica and The Texas Tribune.

Three ethics experts stated that receiving income and not reporting it is a violation of federal disclosure law. Paxton, the Republican nominee for U.S. Senate, reported owning seven homes but stated he earned no income from any of them. All but one of these properties were listed for rent during the reporting periods, and some current residents and neighbors confirmed the properties were rented.

Additionally, Paxton did not disclose mortgages for three condos at an Utah golf resort, which federal law requires him to list as liabilities if they are not personal residences. He also valued his stake in a vacant plot of Texas land at up to $50,000 on last year's filing, while his business partner told the news organizations Paxton's share has been worth about $1 million for years.

Federal financial disclosure law requires property to be listed at fair market value. The apparent errors and omissions obscure the extent of Paxton's income streams, assets, and debt, making it difficult for voters to understand his finances before the November election. This is part of a pattern for Paxton, according to Craig Holman, a government affairs lobbyist for Public Citizen.

Holman stated it reflects either pure sloppiness on Paxton's part or a deliberate effort to conceal some of his investments and property holdings. Establishment Republicans in Texas and Washington, D.C., reportedly did not want Paxton as the Senate nominee. If Paxton wins, an incomplete picture of his finances could prevent watchdogs from evaluating his conflicts of interest as a senator, according to Holman and others.