(Bloomberg) -- Austin real estate developer Nate Paul, an associate of Texas Attorney General Ken Paxton, was indicted on charges of making false statements to influence financial institutions over loan applications.

The charges come less than two weeks after the attorney general was impeached and suspended from office pending his trial in the state Senate. His name doesn’t appear in the indictment.

Read More: Texas AG Ken Paxton Impeached by Republican-Led State House 

According to the indictment, returned Tuesday by a federal grand jury in Austin and unsealed Friday, the affected lenders were based in Texas, New York, Connecticut and Ireland, and the alleged violations took place between March 2017 and April 2018. Prosecutors say that in one instance Paul sought a loan while falsely claiming one of his accounts had $31.6 million in cash, when in fact it held less than $500,000.

The law office of Gerry Morris, who represents Paul, said it had no comment on the charges. 

Read the US Justice Department statement here

Paul is a central figure in the alleged misdeeds that resulted in Paxton’s impeachment last month at the hands of fellow Republicans in the Texas House. Whistleblowers in his office claim they were fired for reporting bribery and other misconduct to the Federal Bureau of Investigation. 

Among other claims, they say Paxton tried to use the powers of his office during the pandemic to help Paul by preventing real estate foreclosure sales and retained a lawyer to investigate the developer’s adversaries. The FBI has opened an investigation into the allegations, but no charges have been filed. 

The charges against Paul complicate things for Paxton by highlighting that he was involved with an alleged grifter and raise the prospect that the developer could decide to provide evidence against Paxton as part of a plea deal, according to Mark Jones, a political science professor at Rice University in Houston.

“It’s one more unknown that he and his legal team will have to contend with,” Jones said, in reference to Paxton.

Read More: Texas AG Paxton’s Impeachment Trial Draws Major Legal Minds 

Paxton has denied wrongdoing. His office didn’t immediately respond to an email and a call seeking comment on Paul’s indictment.

Paul was indicted on eight counts. Each carries a maximum penalty of up to 30 years in prison if he is convicted, according to prosecutors, although under federal sentencing guidelines the term could be shorter. He made his initial court appearance on Friday in Austin and was released on bond.

The case is US v. Natin Paul, 23-cr-100, US District Court, Western District of Texas (Austin).

--With assistance from Brendan Walsh.

(Adds details from indictment in third paragraph.)

©2023 Bloomberg L.P.