Paxton couple's blind trust funds convicted fraudster's firm, sparking ethics concerns
Ken and Angela Paxton's blind trust invested $600,000 in Scott Sherman's construction materials company, despite his prior mortgage-fraud conviction, and the couple received over $83,000 in payments from the firm.
Four years after completing a prison sentence for mortgage fraud, Scott Sherman’s construction-materials business received a $600,000 cash infusion from a blind trust set up by Texas Attorney General Ken Paxton and state Senator Angela Paxton. Previously unreleased impeachment documents reveal the trust was not truly blind; the Paxtons were aware of the investment and were paid more than $83,000 in wire transfers from Sherman’s Wildcatter companies during 2023, including payments shortly before and after Angela Paxton voted for legislation that protected the firm from environmental complaints.
The companies also owed significant local property taxes, adding to the controversy. The revelations emerge as Ken Paxton, acquitted in his impeachment, campaigns for a U.S. Senate seat against Democrat James Talarico. Ethics scholars argue the arrangement conflicts with rules requiring blind-trust investors to have no knowledge of holdings, highlighting potential conflicts of interest for a top anti-fraud official.
Why it matters
It reveals possible conflicts of interest for officials tasked with fighting fraud, undermining public trust.
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