Paxton Trust Put $600,000 Into Firm Tied to Convicted Fraudster
Records from Ken Paxton’s 2023 impeachment inquiry show that a trust meant to separate his finances from his official duties invested $600,000 in a company founded by a man convicted of mortgage fraud. The business later accumulated tax debts, and its affiliated companies paid the Paxtons tens of thousands of dollars around the impeachment proceedings. Paxton was acquitted and is now running for the U.S. Senate.
Records released through the 2023 impeachment inquiry indicate that the trust created to keep the Paxtons’ finances separate from public duties was not operationally blind. Those records show a $600,000 investment in a construction-materials venture founded by Scott Sherman, who had finished a federal sentence for mortgage fraud four years earlier.
Sherman and his father built Wildcatter Sand Services and Grayson County Sand and Gravel into a larger network. Some affiliated entities later owed local taxes, including to school districts, while Wildcatter-linked companies sent the Paxtons tens of thousands of dollars before and during the impeachment proceedings.
The story could affect how voters and ethics regulators view Paxton’s anti-fraud rhetoric and the use of blind trusts in Texas. Residents in affected taxing districts may care whether affiliated firms met local tax obligations, while donors and candidates may face more scrutiny of financial ties. Because Paxton was acquitted and is running for Senate, the disclosure may shape campaign debate, though its actual electoral impact is uncertain.