Paul is accused of stonewalling former investors, hiding assets and defying court orders in a 2024 $11.5 million judgment against him.
A company known as HAR-CMBS 1 LLC has been trying to collect since winning the judgment in a federal court in California. It had previously invested $30 million in Paul’s companies.
In December, the company asked a district court in Travis County to find Paul in contempt for failing to file financial documents it sought in connection with the judgment. Though he provided some of what it sought, HAR-CMBS said in a Jan. 13 filing Paul is withholding other records and again asked the court to find him in contempt.
The 193-page filing from HAR-CMBS attorneys says Paul lied to the court when he said his businesses did not pay his personal expenses. The company cited tax bills on his residence it said were paid by his World Class Holdings Co. in 2019 and 2022. It also said he failed to disclose business interests in more than 100 businesses and failed to produce complete bank records and financial statements for nearly 200 of his business entities.
The company asked the court to jail him until he complied with its order and for $58,000 in attorneys’ fees. Paul’s attorneys have denied the allegations, saying it can’t turn over documents that don’t exist.
On Monday, the case was rescheduled to April 16, when Paul will have to prove he’s provided all available documents.
Though he gained notoriety as a developer, Paul became a household name statewide when he was accused of bribing Texas Attorney General Ken Paxton and became a central figure in his impeachment.