Four years after completing a federal prison sentence for mortgage fraud, North Texas homebuilder Scott Sherman’s new venture, a construction materials business, received a substantial financial boost of $600,000.
This investment originated from a blind trust designed to prevent any conflicts of interest involving Texas Attorney General Ken Paxton and his wife, state Senator Angela Paxton. However, documents unearthed during the attorney general’s 2023 impeachment investigation reveal that the trust was anything but blind, allowing the Paxtons to remain involved in its business dealings, including the investment in Sherman’s enterprise.
Wildcatter Sand Services and Grayson County Sand and Gravel, companies founded by Sherman and his father, rapidly expanded into a significant business with numerous locations and subsidiaries. During this growth, some of these companies ceased paying local taxes, including those owed to school districts.
Despite accumulating tax debts, Wildcatter entities transferred tens of thousands of dollars to the Paxtons in the months leading up to and during Paxton’s impeachment over allegations of corruption and bribery. Ultimately, he was acquitted by the Legislature and is currently engaged in a highly competitive race for a U.S. Senate seat against Democrat James Talarico.
While Paxton has served in public office for over two decades, the blind trust formed at his ascension to the attorney general’s office has shrouded his business activities in secrecy. The Paxtons’ investment in Wildcatter sheds light on the limitations of that trust and the attorney general’s financial ties to business figures he typically prosecutes.
“In Texas, we fight fraud head-on and will not rest until every last corrupt actor is brought to justice,” Paxton stated in a press release last year. In a recent social media post promoting a new campaign ad, he asserted, “As Attorney General, I’ve made big pharma and fraudsters pay billions.”
Engaging with a recently convicted felon undermines this narrative and damages public trust in Paxton’s capacity as the state’s leading anti-fraud enforcer, according to ethics experts.
Richard Painter, former chief ethics lawyer for President George W. Bush, expressed disbelief that the Texas attorney general would choose to associate with a convicted felon. “Why is the attorney general of Texas dealing with those kinds of people?” he questioned.
Wildcatter Sand Services faced a tax warrant due to back taxes and was involved in a lawsuit initiated by local governments. Ken Paxton did not respond to inquiries regarding the investment in Wildcatter or his awareness of Sherman’s criminal past. Previously, he defended his business dealings, claiming adherence to ethics laws. A spokesperson for Angela Paxton, who filed for divorce last year, indicated that she was unaware of Sherman’s conviction.
In 2014, Sherman pled guilty to mortgage fraud charges while operating his homebuilding firm, Artisan Operating LP. The scheme involved inflating home prices to secure larger loans for numerous properties in the Dallas-Fort Worth area. Sherman did not respond to attempts for comment.
Paxton’s ties to Sherman represent the latest in a series of revelations about the attorney general’s interactions with individuals facing federal charges. Recent reports indicated that Paxton celebrated New Year’s Eve 2024 in Dubai with two Americans who were indicted on federal healthcare fraud charges. A spokesperson for Paxton did not address this association but claimed he has been “politically persecuted for years.”
A review of impeachment investigation records revealed that Ken Paxton had some awareness of the blind trust’s investments, which may violate the terms established when the trust was created.
This knowledge could also conflict with U.S. Senate regulations, which would apply if Paxton is elected. Ethics expert Donald Kettl noted that senators with a blind trust must have no knowledge of its investments, raising questions about Paxton’s compliance with these rules.
Under the trust’s setup, the Paxtons designated their acquaintance Chip Loper to manage the assets independently, without any investment instructions from them. Loper did not respond to requests for comment regarding the Paxtons’ involvement in investment selections.
However, text messages revealed during the impeachment inquiry indicated discussions between Loper and Ken Paxton about certain investments. Mortgage and deed records show Paxton acquired eight properties between 2015 and 2026 before transferring them into the trust.
The investment in Wildcatter also appears to have bypassed the established firewall. Angela Paxton served on a Wildcatter advisory board starting in 2022, although no documentation detailing her responsibilities was located. During her tenure, she supported legislation favoring a subsidiary regarding specific environmental complaints.
Additionally, the Paxtons reported over $93,000 in losses from Wildcatter Sand Services and Grayson County Sand and Gravel on their 2020 federal income tax return, indicating a lack of true separation from the trust’s transactions.
After receiving the investment from the Paxtons’ trust, Sherman made significant purchases, including a sand mine in Denison and a concrete plant in Gunter. Residents nearby reported disturbances from dust generated by Wildcatter and other companies, prompting complaints to Texas environmental regulators.
In 2021 and 2022, the Texas Commission on Environmental Quality issued violation notices to Wildcatter Redi-Mix, the operator of the Gunter facility. Some violations were addressed when a road leading to the plant was paved, but concerns from local residents persisted.
Angela Paxton later joined the advisory board of Wildcatter Materials, which oversees Wildcatter Redi-Mix. The IRS classifies advisory boards as lacking legal and financial authority, yet she continued to serve on the board as of her last financial disclosure in 2025.
Despite ongoing complaints against the company, state Senator Drew Springer dismissed residents’ concerns as “abusive” and proposed legislation that would limit the Texas Commission on Environmental Quality’s ability to respond to complaints. Angela Paxton voted in favor of this bill, which critics argue undermined residents’ rights and failed to clarify what constituted an unsubstantiated complaint.
Welch, a spokesperson for Angela Paxton, emphasized the bipartisan support for the legislation, asserting it aimed to prevent the misuse of taxpayer resources by environmental activists. He claimed that Angela Paxton was unaware of any complaints against Wildcatter and did not see a conflict due to the bill regulating an entire industry.
Ethics experts contend that Angela Paxton should have disclosed her relationship with Wildcatter and recused herself from voting on the bill, as state law prohibits lawmakers from voting on legislation benefiting themselves or their businesses. However, this restriction does not extend to broader industry regulations.
Residents near the Gunter plant expressed feelings of disillusionment, believing lawmakers were indifferent to their plight. One advocate, Deirdre Diamond, moved away due to health fears associated with the plants and the perception that regulatory bodies favored corporate interests.
Bank statements from the Paxtons’ blind trust revealed multiple deposits from Wildcatter in early 2023, with over $73,000 transferred across various payments. Notably, approximately $10,000 arrived shortly before Angela Paxton’s vote on the contentious environmental legislation.
These transactions occurred while Wildcatter companies were failing to pay local property taxes, with Wildcatter Sand Services alone owing over $31,000 in back taxes at that time, as per Grayson County records.
As Ken Paxton faced various controversies, including a federal investigation into allegations of misconduct, the financial entanglements with Wildcatter raised further scrutiny. The U.S. Justice Department had taken over inquiries into accusations made by Paxton’s former aides, although the investigation was dropped in 2025.
Payments from Wildcatter to the Paxtons’ trust continued during a House committee investigation into allegations regarding Paxton’s actions. Notably, a $9,000 payment was made to attorney Mitch Little’s firm just prior to Paxton’s impeachment, although it remains unclear if these funds were allocated for legal representation.
Overall, Wildcatter companies made 15 payments to the Paxtons’ trust between January and June 2023, totaling over $83,000. It is uncertain if these payments persisted beyond June, but later records indicated that two of the companies became delinquent on property taxes exceeding $200,000 in 2023.
Local governments were compelled to take legal action to recover the owed amounts, prompting questions about the financial practices and oversight of companies linked to state officials.
