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Texas AG claimed three homes as primary residence. Democrats are being probed for similar issue

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Texas AG claimed three homes as primary residence. Democrats are being probed for similar issue
News

News

Texas AG claimed three homes as primary residence. Democrats are being probed for similar issue

2025-07-25 02:51 Last Updated At:03:01

WASHINGTON (AP) — Texas Attorney General Ken Paxton and his wife, Angela, are longtime owners of a $1.5 million house in a gated community outside Dallas. In 2015, they snapped up a second home in Austin. Then another.

The problem: Mortgages signed by the Paxtons contained inaccurate statements declaring that each of those three houses was their primary residence, enabling the now-estranged couple to improperly lock in low interest rates, according to an Associated Press review of public records. The lower rates will save the Paxtons tens of thousands of dollars in payments over the life of the loan, legal experts say.

It is a federal and state crime to knowingly make false statements on mortgage documents.

The mortgage revelations are sure to become fodder in the Republican primary for a U.S. Senate seat in which Paxton is seeking to topple the incumbent, John Cornyn. The situation is further complicated by the Trump administration’s pursuit of Democrats over similar issues.

President Donald Trump has accused two of his political foes — Sen. Adam Schiff of California and New York Attorney General Letitia James — of committing mortgage fraud in similar, though far less serious, circumstances.

The Democrats have long been targets of Trump’s ire for having led various investigations into his conduct as president and as a business executive.

The Justice Department has launched a criminal investigation of James. It received a criminal referral for Schiff last week from the Federal Housing Finance Agency.

James’ attorney, Abbe Lowell, urged the Trump administration to investigate Paxton instead.

“If this administration was genuinely interested in rooting out fraud, it appears they should stop wasting their time on the baseless and discredited allegations against the New York Attorney General James and turn their attention to Texas,” said Lowell, a prominent Washington attorney whose past clients include Hunter Biden and Ivanka Trump.

In a statement, Marisol Samayoa, a Schiff spokeswoman, blasted the criminal referral as “a transparent attempt” by Trump “to punish a perceived political foe who is committed to holding him to account.”

It’s unlikely that Paxton, a staunch Trump ally, will face the same federal scrutiny as James and Schiff. It’s equally doubtful that Paxton will face much legal trouble in Texas: His office is one of the primary agencies tasked with investigating allegations of mortgage fraud.

Ken Paxton and his spokesman did not respond to multiple requests for comment. Angela Paxton, who is a state senator in Texas, did not respond to requests made through her office.

Documents reviewed by the AP show the Paxtons hold mortgages on three homes — one in suburban Dallas, two in Austin — that are each listed as their primary residence. The designation comes with a considerable financial upside.

Interest rates on primary homes are significantly lower than those for mortgages on secondary homes or investment properties, saving buyers tens of thousands of dollars — if not more — over the life of a loan.

The suburban Dallas home is where the Paxtons’ family has long resided. It’s where Ken and Angela Paxton are registered to vote. It is in the state Senate district that Angela Paxton represents in the Legislature, which Ken Paxton held before his election in 2014 to be attorney general. It’s also where Ken Paxton’s Senate campaign website until recently said he lived.

Legal experts say it’s possible that the Paxtons’ lenders prepared the documents and that the couple did not carefully review them before signing.

Even if that were the case, some legal experts say that Paxton, as an attorney and Texas’ top law enforcement officer, ought to have known better.

“If he filled out lender documents knowing that they were false, then that is a false statement to obtain a mortgage on favorable terms. That would be actionable,” said Arif Lawji, a veteran Texas real estate attorney.

Paxton’s real estate dealings are in many ways distinct from those of James and Schiff, the Democrats targeted by the Trump administration.

The investigation of James centers on forms she signed in 2023 while helping a niece buy a home. One form stated that James intended to occupy the home as her “principal residence.” But in other documents, the New York attorney general made clear she had no intention of living there. An email to the mortgage loan broker two weeks before she signed the documents stated the property “WILL NOT be my primary residence.”

For over a decade, Schiff owned homes in Maryland and California, the state he represents, that were both designated as a primary residence. Schiff corrected the issue in 2020 — a step Paxton has not taken.

Paxton’s real estate dealings are not the first time he has drawn scrutiny for his conduct while in office.

He spent roughly 10 years under state indictment on securities charges while serving as the state’s top law enforcement official. The charges were eventually dropped in 2024. Other alleged misdeeds led to his impeachment by Texas’ GOP-controlled House in 2023. He was acquitted in a trial by the Senate.

What ultimately unleashed the impeachment push was Paxton’s relationship with Austin real estate developer Nate Paul, who pleaded guilty this year to one count of making a false statement to a financial institution. In 2020, eight top aides in Paxton’s office told the FBI they were concerned the state’s top law enforcement official was misusing his office to help Paul.

This story has been updated to delete an incorrect reference that the Paxtons received an impermissible homestead tax break in 2018 for one of their Austin homes; that benefit transferred to the Paxtons from a previous owner for the remainder of that year.

FILE - Texas Attorney General Ken Paxton makes a statement at his office, May 26, 2023, in Austin, Texas. (AP Photo/Eric Gay, File)

FILE - Texas Attorney General Ken Paxton makes a statement at his office, May 26, 2023, in Austin, Texas. (AP Photo/Eric Gay, File)

FILE - Suspended Texas state Attorney General Ken Paxton, center, sits with his attorneys Tony Buzbee, left, and Mitch Little, right, as his impeachment trial continues in the Senate Chamber at the Texas Capitol, Sept. 15, 2023, in Austin, Texas. (AP Photo/Eric Gay, File)

FILE - Suspended Texas state Attorney General Ken Paxton, center, sits with his attorneys Tony Buzbee, left, and Mitch Little, right, as his impeachment trial continues in the Senate Chamber at the Texas Capitol, Sept. 15, 2023, in Austin, Texas. (AP Photo/Eric Gay, File)

FILE - Texas Attorney General Ken Paxton speaks during the Conservative Political Action Conference, CPAC 2024, at the National Harbor in Oxon Hill, Md., Feb. 23, 2024. (AP Photo/Jose Luis Magana, File)

FILE - Texas Attorney General Ken Paxton speaks during the Conservative Political Action Conference, CPAC 2024, at the National Harbor in Oxon Hill, Md., Feb. 23, 2024. (AP Photo/Jose Luis Magana, File)

MINNEAPOLIS (AP) — President Donald Trump on Thursday threatened to invoke an 1807 law and deploy troops to quell persistent protests against the federal officers sent to Minneapolis to enforce his administration's massive immigration crackdown.

The threat comes a day after a man was shot and wounded by an immigration officer who had been attacked with a shovel and broom handle. That shooting further heightened the fear and anger that has radiated across the city since an Immigration and Customs Enforcement agent fatally shot Renee Good in the head.

Trump has repeatedly threatened to invoke the Insurrection Act, a rarely used federal law, to deploy the U.S. military or federalize the National Guard for domestic law enforcement, over the objections of state governors.

“If the corrupt politicians of Minnesota don’t obey the law and stop the professional agitators and insurrectionists from attacking the Patriots of I.C.E., who are only trying to do their job, I will institute the INSURRECTION ACT, which many Presidents have done before me, and quickly put an end to the travesty that is taking place in that once great State,” Trump said in social media post.

Presidents have invoked the law more than two dozen times, most recently in 1992 by President George H.W. Bush to end unrest in Los Angeles. In that instance, local authorities had asked for the assistance.

“I’m making a direct appeal to the President: Let’s turn the temperature down. Stop this campaign of retribution. This is not who we are,” Gov. Tim Walz, a Democrat, said on X.

Minnesota Attorney General Keith Ellison said he would challenge any such action in court. He's already suing to try to stop the surge by the Department of Homeland Security, which says officers have arrested more than 2,500 people since Nov. 29 as part of an immigration operation in the Twin Cities called Metro Surge.

The operation grew when ICE sent 2,000 officers and agents to the area early in January. ICE is a DHS agency.

In Minneapolis, smoke filled the streets Wednesday night near the site of the latest shooting as federal officers wearing gas masks and helmets fired tear gas into a small crowd. Protesters responded by throwing rocks and shooting fireworks.

Demonstrations have become common in Minneapolis since Good was fatally shot on Jan. 7. Agents who have yanked people from their cars and homes have been confronted by angry bystanders demanding they leave.

“This is an impossible situation that our city is presently being put in and at the same time we are trying to find a way forward to keep people safe, to protect our neighbors, to maintain order,” Minneapolis Mayor Jacob Frey said.

The American Civil Liberties Union of Minnesota filed a class-action lawsuit on behalf of three people who said they were questioned or detained in recent days. The lawsuit says two are Somali and one is Hispanic; all three are U.S. citizens. The lawsuit seeks an end to what the ACLU describes as a practice of racial profiling and warrantless arrests. The government did not immediately comment.

Homeland Security said in a statement that federal law enforcement officers on Wednesday stopped a driver from Venezuela who is in the U.S. illegally. The person drove off then crashed into a parked car before fleeing on foot, DHS said.

Officers caught up, then two other people arrived and the three started attacking the officer, according to DHS.

“Fearing for his life and safety as he was being ambushed by three individuals, the officer fired a defensive shot to defend his life,” DHS said. The confrontation took place about 4.5 miles (7.2 kilometers) from where Good was killed.

Police chief Brian O’Hara said the man who was shot did not have a life-threatening injury. O’Hara's account of what happened largely echoed that of Homeland Security, which later said the other two men were also in the U.S. illegally from Venezuela.

The FBI said several government vehicles were damaged and property inside was stolen when agents responded to the shooting. Photos show broken windows and insults made with paint. A reward of up to $100,000 is being offered for information. The FBI’s Minneapolis office did not immediately reply to messages seeking more details.

St. Paul Public Schools, with more than 30,000 students, said it would begin offering an online learning option for students who do not feel comfortable coming to school. Schools will be closed next week until Thursday to prepare for those accommodations.

Minneapolis Public Schools, which has a similar enrollment, is also offering temporary remote learning. The University of Minnesota will start a new term next week with different options depending on the class.

Madhani reported from Washington, D.C. Associated Press reporters Sophia Tareen in Chicago; Bill Barrow in Atlanta; Rebecca Santana in Washington; and Ed White in Detroit contributed.

Federal immigration officers confront protesters outside Bishop Henry Whipple Federal Building, Thursday, Jan. 15, 2026, in Minneapolis. (AP Photo/John Locher)

Federal immigration officers confront protesters outside Bishop Henry Whipple Federal Building, Thursday, Jan. 15, 2026, in Minneapolis. (AP Photo/John Locher)

Law enforcement officers at the scene of a reported shooting Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/Adam Gray)

Law enforcement officers at the scene of a reported shooting Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/Adam Gray)

A woman covers her face from tear gas as federal immigration officers confront protesters outside Bishop Henry Whipple Federal Building, Thursday, Jan. 15, 2026, in Minneapolis. (AP Photo/Adam Gray)

A woman covers her face from tear gas as federal immigration officers confront protesters outside Bishop Henry Whipple Federal Building, Thursday, Jan. 15, 2026, in Minneapolis. (AP Photo/Adam Gray)

A protester throws back a tear gas canister during a protest after a shooting on Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/John Locher)

A protester throws back a tear gas canister during a protest after a shooting on Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/John Locher)

Federal immigration officers confront protesters outside Bishop Henry Whipple Federal Building, Thursday, Jan. 15, 2026, in Minneapolis. (AP Photo/Adam Gray)

Federal immigration officers confront protesters outside Bishop Henry Whipple Federal Building, Thursday, Jan. 15, 2026, in Minneapolis. (AP Photo/Adam Gray)

Minneapolis City Council Member Jason Chavez, second from left, blows a whistle with other activists to warn people of federal immigration officers Thursday, Jan. 15, 2026, in Minneapolis. (AP Photo/John Locher)

Minneapolis City Council Member Jason Chavez, second from left, blows a whistle with other activists to warn people of federal immigration officers Thursday, Jan. 15, 2026, in Minneapolis. (AP Photo/John Locher)

Tear gas surrounds federal law enforcement officers as they leave a scene after a shooting on Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/John Locher)

Tear gas surrounds federal law enforcement officers as they leave a scene after a shooting on Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/John Locher)

A child and family are escorted away after federal law enforcement deployed tear gas in a neighborhood during protests on Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/Adam Gray)

A child and family are escorted away after federal law enforcement deployed tear gas in a neighborhood during protests on Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/Adam Gray)

A protester holds an umbrella as sparks fly from a flash bang deployed by law enforcement on Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/Adam Gray)

A protester holds an umbrella as sparks fly from a flash bang deployed by law enforcement on Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/Adam Gray)

Monica Travis shares an embrace while visiting a makeshift memorial for Renee Good, who was fatally shot by an ICE officer last week, Monday, Jan. 12, 2026, in Minneapolis. (AP Photo/John Locher)

Monica Travis shares an embrace while visiting a makeshift memorial for Renee Good, who was fatally shot by an ICE officer last week, Monday, Jan. 12, 2026, in Minneapolis. (AP Photo/John Locher)

A protester yells in front of law enforcement after a shooting on Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/John Locher)

A protester yells in front of law enforcement after a shooting on Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/John Locher)

Tear gas surrounds federal law enforcement officers as they leave a scene after a shooting on Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/John Locher)

Tear gas surrounds federal law enforcement officers as they leave a scene after a shooting on Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/John Locher)

Protesters shout at law enforcement officers after a shooting on Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/Abbie Parr)

Protesters shout at law enforcement officers after a shooting on Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/Abbie Parr)

Law enforcement officers stand amid tear gas at the scene of a reported shooting Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/Adam Gray)

Law enforcement officers stand amid tear gas at the scene of a reported shooting Wednesday, Jan. 14, 2026, in Minneapolis. (AP Photo/Adam Gray)

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