← Back to Legal News
Texas AG's Office Under Fire for Donor Hotel Room Reallocations Amidst Audit
Key Takeaways
- •Texas AG's office reallocated taxpayer-funded hotel rooms to private citizens and donors.
- •Some individuals failed to cover room costs until a state audit of agency finances began.
- •Two senior AG officials resigned after booking errors were flagged post-audit reopening.
- •The reallocation process bypassed proper state procedures, raising ethical and public funds misuse concerns.
- •The incident follows AG Paxton's 2023 impeachment, also involving donor relationships.
Hey, let's talk about something happening in Austin that really makes you think about how our state government spends money. The Texas Attorney General's office is facing serious questions. It turns out, they let some private citizens – including major donors – use hotel rooms that taxpayers originally paid for.
Here’s the rundown: Ken Paxton's office was scrutinized after agency staff gave these publicly funded rooms to non-employees. What makes it worse? Some of these folks didn't even pay for their stay until state auditors started looking into the agency's books earlier this year. When the comptroller's office began a routine audit, that's when payments for some of these rooms finally came through.
Two top officials who knew about this mess actually quit their jobs right after agency leadership caught wind of the situation. It's a tough look, especially since Paxton himself was impeached not too long ago in 2023 over claims of bad relationships with a donor. Now he's in a big Senate runoff race, so this comes at a tricky time for him.
The whole thing started with hotel rooms the AG's office booked for its employees. They were supposed to go to Washington, D.C., for two big events: President Donald Trump’s inauguration and Supreme Court arguments. Paxton’s team was defending a new Texas law requiring adult websites to verify users' ages in that Supreme Court case.
The agency dropped more than $20,000 on a block of ten nonrefundable rooms at a Courtyard Marriott. But then, a winter storm hit. Many of the state employees couldn't make it to D.C. This left the agency on the hook for about $16,000 in unused rooms. That's a lot of your tax dollars potentially wasted, right?
So, what did the agency do? They found private citizens who wanted the rooms and said they’d pay for them out of their own pockets. The idea, according to Deputy First Assistant Attorney General Ralph Molina, was to keep the state from having to pay for those empty rooms. Sounds okay on the surface, but the details get messy.
Who got these rooms? The list included some big names in the donor world: Terry and Jennifer Lacore, Bashkim Ulaj (a controversial Albanian businessman), and Fatmir Mediu, who chairs the Albanian Republican Party. Pastor Keith Craft from Elevate Life Church in Frisco also got a room. Even State Sen. Angela Paxton, Ken Paxton’s wife, used one of the rooms, though she covered her own costs. She’s the one who wrote the bill that went before the Supreme Court.
The problem is, the state employees skipped the proper steps for transferring these rooms. And it gets trickier: two of the private citizens who were supposed to use the rooms never showed up. But guess what? Their names were still attached to the charges, and the AG's office ended up getting billed for those rooms anyway.
Apparently, the employees handling this didn't tell their bosses about the billing problem. Instead, they asked the private individuals to pay the hotel directly *after the fact*. The hope was the hotel would then refund the AG's office. This whole shuffle managed to save the agency $7,296, but they still ended up paying $8,339 for rooms that went unused and were nonrefundable. It's like patching a small hole while a bigger one leaks.
Things really heated up in June when the state comptroller’s office announced a “routine post-payment audit.” They were going to check payroll, purchasing, and travel expenses. A few weeks after that, guess who paid for their rooms? Craft and another guest. The hotel then reimbursed Paxton’s office.
That audit actually hit a snag when Comptroller Glenn Hegar left office, with Kelly Hancock stepping in as acting comptroller. The investigation paused. But in October, senior aides Michele Price (CFO) and Lesley French (Chief of Staff) started emailing about these travel issues. The conversation cooled down until *after* the March 3 primary election, when acting Comptroller Hancock reopened the audit.
Soon after the audit restarted, French warned other senior officials about “errors and mistakes” in the hotel bookings. She worried these issues “could potentially be misconstrued in an audit.” The very next day, she resigned. A few days later, Price also resigned.
Neither of them mentioned the investigation or the audit in their resignation letters. French simply said she'd taken another job, and Price didn't give a reason. The Attorney General’s office hasn't said anything about the investigation or why French and Price left.
This whole situation raises serious questions about public trust, the ethical use of taxpayer money, and transparency in government. When public officials reallocate state resources, especially to donors, it calls into question whether they're prioritizing the public's interest or private connections. It’s a classic example of how even small procedural shortcuts can lead to big issues when public funds are involved.
Original source: Texas State Government: Governor, Legislature & Policy Coverage.
