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Lt. Gov. David Dewhurst is being investigated by the Travis County Attorney’s Office because of an alleged failure to fully disclose his financial records.
Travis County Attorney David Escamilla is reviewing a formal complaint submitted by Texans for Public Justice, a campaign watchdog group, to determine if Dewhurst failed to abide by Texas law.
Dewhurst stands as one of the richest Texas lawmakers with a net wealth in the hundreds of millions, but most of the major assets of his wealth, contained in the Dewhurst Trust, are not disclosed.
“The lieutenant governor should fulfill his disclosure obligations under the law,” said Craig McDonald, director of the watchdog group. “One of the most powerful state officials should not be allowed to hide his assets from the public.”
The group filed the complaint in September, because in Dewhurst’s personal financial statement, he lists a trust earning more than $25,000 a year without listing any assets, which are likely to be higher than $500 each, McDonald said.
Under Chapter 572 of Texas code, state officers are obligated to disclose a personal financial statement naming every asset in their trust that earns more than $500 a year. The criminal charge against Dewhurst is a Class B Misdemeanor, punishable by a fine up to $2,000 and up to 180 days in jail.
Defense attorney Ron Minton will represent Dewhurst in court and said they are willing to cooperate with the investigation.
In a statement, Dewhurst said he followed the advice of his attorneys when filing his financial statement to fully comply with the law.
“It is a fact: I do not know the assets in my trust from which I have received income in excess of $500,” according to the statement.
Dewhurst has often said he was a major stockholder in a Houston energy and investments company and has ranching and real estate investments in Fredericksburg, Bastrop County, Austin and Houston. But the state disclosure forms list no such details about the trust, according to the Austin American-Statesman.
A state official can have by law a “blind trust,” which does not allow the trust’s beneficiaries to have any knowledge of the assets that make up the fund.
Minton told the watchdog group it was impossible to identify which assets are producing more than $500 because the proceeds are “mixed up all together with all the other income,” according to a letter written by McDonald to Escamilla.
The group said that since the trust is considered “non-blind” under the law, the argument
is irrelevant.
“Professing ignorance cannot and does not erase this important disclosure requirement,” the letter said.
McDonald said the state upholds disclosure laws so that constituents can judge for themselves if their leaders are invested in something that may be a conflict of interest.
“We don’t hope that [Dewhurst] is charged with a crime,” McDonald said. “We hope that he will fix the problem and bring all the information to light.”
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