Records Link Paxton Investment to Businessman Convicted of Fraud
The Texas attorney general and his wife put $600,000 into a construction materials company run by Scott Sherman, who had pleaded guilty to mortgage fraud in 2014. Records from the 2023 impeachment inquiry indicate the investment was presented as a blind trust even though the couple’s involvement was not actually concealed. Sherman’s firms reportedly paid the Paxtons while they owed back taxes, and Paxton is now the Republican Senate nominee.
Records from the 2023 impeachment inquiry, reported by the Texas Tribune, show Ken and Angela Paxton placed $600,000 with a construction-materials company operated by Scott Sherman. Sherman, a home builder, had admitted to mortgage fraud in 2014. The arrangement was described publicly as a blind trust, yet the couple’s role was not actually hidden.
Sherman’s businesses reportedly sent the Paxtons thousands of dollars while the couple owed back taxes. Paxton was investigated by the Texas Legislature and acquitted, and he is now the Republican U.S. Senate nominee in a competitive race against Democrat James Talarico. Ethics specialists said the conduct conflicts with his role as the state’s chief law-enforcement officer.
The disclosure may intensify scrutiny of how elected officials manage private investments and whether public trust in law-enforcement leadership erodes. Voters in Texas, especially those weighing integrity and ethics in the Senate race, could be affected as the story becomes part of campaign debate. It may also prompt broader discussion about blind-trust claims and financial disclosure rules, though the ultimate political effect remains uncertain.