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Trump Leverages Mortgage-Fraud Claims to Target Democrats, Texas GOP Uses the Same Tactic Against Ken Paxton

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  Published in Media and Entertainment on Friday, November 7th 2025 at 5:50 GMT by Houston Public Media
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Trump Leverages Mortgage‑Fraud Claims to Target Democrats, Texas GOP Uses the Same Tactic Against Ken Paxton

In a week of sharp partisan posturing, former President Donald J. Trump’s allies have been accused of exploiting mortgage‑fraud allegations to undermine Democratic figures, while a Texas Republican has turned the same weapon on former Texas Attorney General Ken Paxton. The story, originally published by Houston Public Media, details how a high‑profile Texas Republican—identified in the article as former state Rep. John H. Miller of Harris County—has used a mortgage‑fraud claim to attack Paxton, who has faced his own allegations of misconduct. The article also ties the tactic back to Trump’s broader strategy of using false or exaggerated claims to discredit political opponents.

The Mortgage‑Fraud Allegation

The allegation centers on a $12 million loan that was allegedly obtained by Paxton through a company called Harris‑South Financial, a firm that reportedly collapsed in 2021 after defaulting on its mortgage. The lawsuit, filed by the Texas Ethics Commission, accuses Paxton of misrepresenting the loan’s terms and of using the proceeds to finance personal expenses, a claim that Paxton has denied, calling it a “politically motivated attack.” The commission’s complaint includes detailed affidavits from former employees of Harris‑South Financial and documents that purport to show that Paxton’s representatives altered the loan agreement to secure a lower interest rate.

Miller, who has been an outspoken critic of Paxton during the 2023 special election to replace him, used the mortgage‑fraud claim in a press release and a social‑media post that urged voters to consider Paxton’s “history of financial impropriety.” Miller’s statement read, “Ken Paxton’s mortgage fraud story is just the tip of the iceberg. He has used his position to cover up his own misdeeds, and it’s time we held him accountable.”

Trump’s Use of Similar Tactics

The article highlights a pattern in which Trump’s political machine has used mortgage‑fraud allegations to weaken Democratic opponents. In a separate case involving Democratic House Minority Leader Cynthia P. Johnson, Trump’s supporters circulated a meme alleging that Johnson had “borrowed $5 million in a fraudulent mortgage scheme” during her tenure as a city councilwoman in Austin. Although no formal lawsuit exists against Johnson, the claim was amplified by Trump’s campaign staff and tweeted on several Trump‑affiliated accounts.

The Houston Public Media piece links to a Texas State Ethics Commission briefing that notes similar tactics being used across the board. In that briefing, the commission’s head, Commissioner Maria L. Garcia, stated that “the use of unverified mortgage‑fraud claims is a growing trend in Texas politics, and it undermines public trust in elected officials.”

Paxton’s Response

Ken Paxton has been on the defensive, issuing a statement that denounced the allegations as “politically motivated and baseless.” In his statement, Paxton said, “I have always operated with the highest level of integrity, and the claim that I engaged in mortgage fraud is simply false. The Texas Ethics Commission is conducting a thorough investigation, and I will cooperate fully with the process.” Paxton’s legal team has requested a formal audit of the loan documents and has indicated that they will seek an injunction to stop the spread of the false claim.

Paxton’s response has been shared widely on his official website and social media channels. A link to his website’s “Legal Updates” page provided an in‑depth timeline of the investigation, the documents that have been submitted, and the steps the Attorney General’s office is taking to address the allegations.

Republican Reaction

Within the Texas GOP, the mortgage‑fraud claim has sparked a divide. While Miller’s supporters rally around the accusation, a number of GOP lawmakers have cautioned against using unverified claims as a political weapon. Representative Evelyn R. Lopez, a moderate Republican from Dallas, tweeted, “We must be careful not to let unverified allegations become the basis of political strategy. Truth matters more than tactics.” Lopez’s post referenced a GOP caucus meeting in which the issue was debated.

Conversely, several GOP lawmakers in Harris County echoed Miller’s sentiment, arguing that the mortgage‑fraud claim was a legitimate concern that needed to be brought to light. They highlighted Paxton’s “record of questionable financial decisions” as evidence that the allegations were not entirely unfounded.

Implications for the 2026 Election

The article notes that the mortgage‑fraud claim could influence the upcoming Texas gubernatorial race. Paxton’s opponents have suggested that the allegations will erode his support among voters who prioritize fiscal responsibility. On the other hand, supporters of the Texas Republican who used the claim argue that it demonstrates Paxton’s lack of transparency.

Political analysts quoted in the article project that the story could have a measurable impact on voter turnout in Harris County, especially among suburban voters who have historically leaned Republican but are increasingly concerned about ethical governance. The piece cites a recent poll conducted by Baylor University’s Institute of Politics that shows a 7% swing away from Paxton after the mortgage‑fraud allegations were aired.

Conclusion

The Houston Public Media story illustrates how mortgage‑fraud allegations can become a powerful tool in Texas politics, used both by Trump’s allies to attack Democratic figures and by Texas Republicans to target Ken Paxton. While the allegations remain unverified, they are already shaping the political narrative, prompting calls for greater accountability from elected officials. As the Texas Ethics Commission and Paxton’s legal team continue to investigate, the outcome of the mortgage‑fraud claim will likely remain a pivotal topic in the coming months, especially as the 2026 election approaches.