Texas Attorney General Ken Paxton has accumulated millions of dollars in wealth while drawing his public servant salary of $153,750, sparking doubts about his financial transparency and potential conflicts of interest during his U.S. Senate campaign.
From Modest Beginnings to Millionaire Status
The Wall Street Journal received financial documents through a legal subpoena, which revealed Ken Paxton had less than $175,000 in assets when he entered public service in 2002. Bank records indicate that Ken Paxton’s public service since 2002 has resulted in substantial financial growth, as his net worth reached $5.5 million by 2018.
The large gap between his official government salary and his total financial growth has sparked concern among ethics experts and media investigators who scrutinize his financial dealings.
The WatchGuard Windfall, A $2.2 Million Payday
“He had invested in the company shortly after it formed back in the early 2000s, and then it got the DPS contract a couple of years later,”
Elizabeth Findell of The Wall Street Journal reported
WatchGuard, a police video technology company, brought Paxton his most substantial financial success. Paxton invested $300,000 in WatchGuard in 2004, before receiving $2.2 million from Motorola when the company was acquired for $250 million in 2019.
The investment became controversial because WatchGuard obtained a Texas Department of Public Safety contract in 2006 when Paxton held his state legislative position and owned shares in the company.
Real Estate Empire Across Multiple States
The Wall Street Journal reported that Paxton spent ten months buying real estate after receiving his WatchGuard money. The attorney general and his wife, state Senator Angela Paxton, used mortgages to buy properties in Florida, Oklahoma, Utah, and Hawaii during their ten-month real estate buying period.
The couple now possesses at least 11 residential properties across the United States, which public records show have a combined assessed value of $7.5 million. The attorney general revealed ownership of eight properties through state ethics reports after maintaining minimal disclosure for multiple years.
Blind Trust Controversy Raises Ethics Questions
The Paxtons established the Esther Blind Trust in 2015, ostensibly to prevent conflicts of interest by shielding them from knowledge of their investments. However, subpoenaed text messages reveal ongoing communication between Paxton and trustee Charles Loper III about investment decisions.
“Please keep me informed of any financial actions by Ken and don’t assume I am aware, even if he tells you I consent.”
Angela Paxton texted Loper in 2020, according to records obtained by investigators.
The Wall Street Journal legal experts determined that such communications would break ethics statutes because blind trusts require the beneficiary to have no involvement in their management.
Disclosure Gaps and Regulatory Changes
The Texas Ethics Commission received limited details about Paxton’s property assets throughout multiple years. Of the 10 properties he and his blind trust currently own, just one appeared on his most recent official financial statement.
The Texas Ethics Commission has established disclosure rules that require public officials to disclose the assets in their blind trusts upon discovering their contents, resulting in additional disclosure reports for 2024.
Political Implications for Senate Campaign
The public is now scrutinizing Paxton’s financial growth because he is running against Senator John Cornyn in the Republican primary. The current polling data shows Cornyn and Paxton are tied at 30 percent each.
The attorney general faces an ongoing federal investigation by the Justice Department, though the Biden administration decided not to pursue charges in its final weeks. Paxton settled a ten-year securities fraud case through a deal that required him to return almost $300,000 and complete community service.