Ken Paxton’s Financial Disclosures Appear to Violate Federal Ethics Law, Experts Say

Photo collage by ProPublica. Source imagery by Texas-tribune" class="entity-link entity-organization" data-entity-id="20686" data-entity-type="organization">The Texas Tribune, with documents acquired by ProPublica. Texas Attorney General Ken Paxton appears to have violated federal ethics law in significant ways when filing recent disclosures of his assets and liabilities, creating confusion about his net worth and holdings, a review by ProPublica and Texas-tribune" class="entity-link entity-organization" data-entity-id="20686" data-entity-type="organization">The Texas Tribune found. Among them: Paxton, the Republican nominee for U.S. Senate, reported owning seven homes but said he earned no income from any. Yet all but one was listed for rent during the reporting periods, and some current residents and neighbors at those addresses confirmed that the properties were rented, the news organizations found. Receiving income and not reporting it is a violation of federal disclosure law, three ethics experts said.  Additionally, Paxton did not disclose mortgages for three condos at a Utah golf resort that federal law requires him to list as liabilities if they are not personal residences.  He also valued his stake in a vacant plot of Texas land at up to $50,000 on last year’s filing, but his business partner told the newsrooms Paxton’s share for years has been worth about $1 million. federal financial disclosure law requires property to be listed at fair market value. The apparent errors and omissions the newsrooms found obscure the extent of Paxton’s income streams, assets and debt, making it difficult for voters to make sense of his finances as they mull whether to support him in November’s election, the ethics experts said. “It reflects either pure sloppiness on Paxton’s part or a deliberate effort to conceal some of his investments and property holdings,” said Craig Holman, a government affairs lobbyist for the nonpartisan good-government group Public Citizen. In Paxton’s filings reviewed by ProPublica and Texas-tribune" class="entity-link entity-organization" data-entity-id="20686" data-entity-type="organization">The Texas Tribune, he valued an undeveloped plot of land as worth up to $50,000 in 2025, first image, but then listed it the following year at between $1 million and $5 million, second image. Obtained and highlighted by ProPublica and Texas-tribune" class="entity-link entity-organization" data-entity-id="20686" data-entity-type="organization">The Texas Tribune If Paxton wins, an incomplete picture of his finances could prevent watchdogs from evaluating his conflicts of interest as a senator, Holman and others said. The apparent omissions are part of a pattern for Paxton. Over three terms as attorney general, he has withheld financial information that could explain how he became a multimillionaire and had the resources to purchase more than a dozen properties in five states. He began including many of these on his state disclosures only after the Texas Ethics Commission closed a loophole in 2024 that Paxton had cited to leave them off. Most were acquired while Paxton earned a government salary of $153,750. In the new federal disclosure, filed in August after Paxton received a three-month extension, he reported a net worth between $1 million and $27 million. That is a significantly higher range than the negative $1.9 million to $11.1 million net worth he reported a year ago, before he had secured the Republican nomination but after he had declared his candidacy for federal office. The spike was driven not by Paxton’s acquisition of more assets but because the reported value on several of his properties soared.  Paxton’s report omitted listing as assets seven properties worth about $5.2 million collectively, including the Utah condos for which he did not disclose mortgages. He co-owns all of his known real estate holdings with his estranged wife, state Sen. Angela Paxton, property records show. The eight he reported are held by their blind trust, which is managed by a family friend. Federal rules do not require candidates to report as assets personal homes or properties from which they don’t earn money, even if the properties are worth millions. At a time when voters feel anxious about their own personal finances and dislike the idea of politicians getting rich in office, it would be wise for Paxton to be more transparent about his wealth, said Texas ethics and campaign finance lawyer Andrew Cates. “If it were me trying to get people’s vote, I would err on the side of transparency rather than not,” Cates said. Paxton declined to be interviewed and did not answer detailed questions about how he filled out the disclosure forms. Madison Cercy, a spokesperson for his campaign, said Paxton “has had a long and successful career outside of public service, including running his own small business as a lawyer. Stirring up partisan allegations is nothing more than a bad attempt to manufacture controversy where none exists.” Before being elected to the state Legislature in 2002, Paxton worked at a law firm in the Dallas area and was a corporate attorney for JCPenney. His state financial disclosure for 2001 listed assets totaling no more than $170,000, a ProPublica and Tribune analysis found. By 2015, his household net worth had grown to $5.4 million, according to financial records lawmakers subpoenaed in 2023 after impeaching Paxton on charges that he took bribes in exchange for helping an Austin real estate investor. The records, few of which were admitted into evidence during the 10-day Senate trial that resulted in his acquittal, document how Paxton built a diverse portfolio that included investments in a cellphone tower , an HVAC company, a cement supplier and a police body camera manufacturer. He netted $2.2 million when Motorola acquired the body camera firm in 2019 , according to his income tax return from that year.  Shortly after, he went on a real estate buying spree, snapping up six properties in Oklahoma, Florida, Utah and Hawaii. His impeachment defense team said Paxton made a prudent shift toward real estate at a time of rock-bottom interest rates. Questions about Paxton’s integrity have dogged him in the race for U.S. Senate. His opponent, Democratic state Rep. James Talarico, entered September with a narrow polling lead — uncharted territory in a state where Republicans have not lost a statewide race in 32 years.  A University of Texas/Texas Politics Project poll released last week found that just a third of respondents viewed Paxton as “honest and trustworthy.” The same day the statewide poll was published, a super PAC supporting Talarico hit the airwaves with an ad that labeled the attorney general as “the most corrupt politician in Texas.” The commercial included a reference to Paxton’s recently disclosed net worth. Talarico’s net worth, according to his most recent personal financial disclosure, was between $67,000 and $305,000. The range changed little from the previous year. Like Paxton, Talarico did not include his single personal residence among his reported assets.  James Henson, director of the Texas Politics Project, said the questions surrounding Paxton’s latest financial disclosures reinforce a longstanding narrative that the attorney general is secretive about his finances and may have leveraged his public position for personal gain. “It’s his choice how much he explains or doesn’t explain,” Henson said. “But I think that comes with a potential cost, and we’re seeing that in public opinion.” Paxton’s pivot to real estate appears to be a way to supplement his salary as attorney general. The newsrooms found recent rental listings for six of the properties he disclosed but for which he said he derived no income: two homes in Ocala, Florida; a home and a condo in Austin; a home in College Station, Texas; and a vacation lodge in Broken Bow, Oklahoma.  A tenant confirmed to the newsrooms she’s living at one of Florida houses. At the Austin condo complex, a next-door neighbor said Paxton’s unit has a renter. And the five-bedroom, three-story Oklahoma lodge he owns is listed online as a short-term rental for up to $1,200 a night, with fall bookings filling up fast. On his disclosure forms, which require real estate income to be reported, Paxton for each property selected the option “None (or less than $201).” Federal law requires candidates who aren’t currently in Congress to report all loans exceeding $10,000, except those for personal residences. Paxton did not report three mortgages totaling $1.3 million for condos at the Black Desert Resort in southwest Utah, renowned for its world-class golf course. He purchased the properties in February; the reporting period for the most recent disclosure ran through mid-May.  Reporters found the mortgage documents in local land records. Each contains an addendum to the mortgage that is used for rental properties, said New Jersey real estate lawyer Daniel M. Shlufman. That addendum removes a requirement that the unit be owner-occupied and allows the lender to collect rent directly from tenants if Paxton were to default on the loan. Paxton purchased another condo at the resort in 2025, which he disclosed on his most recent report as an asset and a liability. The land records show he obtained a $640,000 mortgage for it. The resort advertises a program in which it leases units purchased by investors, but it declined to say if Paxton’s properties were enrolled in it. “It’s kind of mind-boggling to think about having four homes at one resort property and imagining those are for personal use,” said Cynthia Brown, a senior lawyer at the government watchdog Citizens for Responsibility and Ethics in Washington. The most significant changes between Paxton’s 2025 and 2026 reports were the valuations of the Oklahoma lodge and a plot of land outside of Fort Worth, whose value he said had increased by millions of dollars. He appears to have switched from reporting the properties’ assessed values, which are set by the local county, to the loftier estimates of what they would fetch on the open market.  Paxton’s initial use of the lowball values appears to defy federal rules aimed at bringing candidates’ disclosed property values in line with what they’re actually worth. While the Senate Ethics Committee instructs filers that they can use a recent tax assessment to set the worth of certain property, they must adjust it to market value if it is assessed below that. In these cases, valuations must be disclosed as a specific dollar figure rather than a range. On both his annual reports as a Senate candidate, Paxton listed ranges for the value of each property he disclosed. Last year, Paxton reported the Oklahoma lodge, just north of the Texas border, as worth between $100,001 and $250,000. The local county assesses the property at $176,000. Its estimated market value, meanwhile, is more than $1.5 million, according to real estate websites. This year, Paxton’s disclosure valued the property at between $1 million and $5 million.  Likewise, Paxton valued a 42-acre plot of undeveloped land in Johnson County, south of Fort Worth, at between $15,001 and $50,000 last year. The county assesses the property as farmland worth $20,008, but estimates its market value is $2.9 million. This year, Paxton’s disclosure said the property was worth between $1 million and $5 million. Paxton bought the property in 2006 with a group of investors including Rob Orr, with whom he served in the Texas House of Representatives. Orr, who manages the investment, said in an interview that Paxton’s 20% stake is worth about $1 million. “It would have been around a million for quite a while, probably the last four or five years,” Orr said. “It has increased in value because of zoning and because of time.” The group bought the plot to hold onto, Orr said, until creeping growth from the Dallas-Fort Worth area made it attractive for redevelopment. He said the group is negotiating a sale to a developer. Last year, Orr persuaded the City Council in Burleson to rezone the land, which had been restricted to agriculture, to permit retail and housing. Ken Paxton Touts His Efforts to Fight Voter Fraud. His Senate Opponent Is Now Accusing Him of Committing It. Paxton’s move to significantly revalue his assets without explaining why is “very strange,” said Margaret Dylus-Yukins, senior counsel for ethics at the nonpartisan Campaign Legal Center, which advocates for strong disclosure rules. Dylus-Yukins, who worked for six years analyzing executive branch officials’ financial disclosures for the U.S. Office of Government Ethics, said the agency would ask filers to explain major changes in writing. “When you have public officials that appear to be fudging the numbers on their disclosure forms, and the Senate Ethics Committee is letting that slide, then you’re not only eroding trust in the committee but the candidate himself,” Dylus-Yukins said, referring to the significant differences between the filings.  The ethics committee did not respond to requests for comment. Candidates or senators who willingly falsify financial disclosures can be fined up to $50,000 or prosecuted for making a false statement to the government, a felony. The committee rarely investigates senators and has not formally sanctioned a member in 19 years . Candidates do not have to file any more federal financial disclosures before the November election. 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