Ex-lawyer Christopher Pettit dealing with ‘medically related issues’
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He’s also working with “medically relevant concerns,” his attorney disclosed for the duration of the to start with listening to in Pettit’s large individual bankruptcy case.
Bankruptcy lawyer Michael Colvard declined to reveal his client’s medical difficulties but informed a San Antonio decide Wednesday that Pettit was referred to another attorney who will work carefully with the Texas Lawyers Aid Program.
The method allows attorneys who have “substance use and other psychological health problems,” according to its website.
“He’s getting therapy,” Colvard stated to Chief U.S. Bankruptcy Judge Craig Gargotta. “He may perhaps be searching for remedy in in-care amenities for those medical ailments.”
Pettit, who specialised in estate setting up and private-damage regulation, has been sued at the very least 14 times by previous customers who say he stole hundreds of thousands of dollars from them. He has issued general denials to the allegations in some of the instances but has entered into judgments with some plaintiffs — agreeing to pay them genuine and punitive damages.
Pettit and his legislation firm submitted for Chapter 11 individual bankruptcy defense June 1, in essence placing a hold on the pending litigation. He mentioned $27.8 million in belongings and $115.2 million in liabilities in his individual bankruptcy, making it a single of the major ever filed in San Antonio.
He has provided up his law license in lieu of disciplinary motion by the Point out Bar of Texas.
Gargotta agreed to the appointment of a Chapter 11 trustee who will in essence act as a CEO or manager to shepherd the personal bankruptcy circumstances and appoint industry experts, like forensic accountants to keep track of down money and other belongings for the profit of Pettit’s previous customers and other lenders.
“A sizeable quantity of that money is lacking — and we’re chatting $50 million or additional,” Raymond Battaglia, who signifies one particular of Pettit’s former clientele, stated in the course of the listening to.
It will be up to the U.S Trustee’s business, which administers individual bankruptcy situations, to find the trustee.
Pettit’s bankruptcy papers present he owns a number of residences together with a 7,300-square-foot mansion in Disney Earth which is mentioned for sale for $8.9 million, and a dwelling at 555 Argyle Ave. in Alamo Heights overlooking Olmos Dam. It is valued at $3.6 million.
Pettit is less than investigation by the FBI and, in accordance to a supply, the Internal Earnings Service.
Colvard stated that just before he agreeed to characterize Petitt and his organization, Pettit gave assurances of his cooperation. But it may possibly not be complete.
“Mr. Pettit has no intention of waiving his Fifth Amendment rights” from self-incrimination, Colvard instructed the choose. “At some stage in time, (people legal rights) may perhaps be asserted in just these proceedings.”
“I’m confident you have explained to him the repercussions of invoking the Fifth Modification in the context of a civil proceeding, and how the court docket could view that,” Gargotta replied.
Unlike in a felony situation, a decide in a bankruptcy continuing can attract an adverse inference from a witness who cites the Fifth Amendment in refusing to response thoughts or testify.
Pettit also hasn’t waived his correct to deny the allegations in opposition to him, Colvard claimed.
Pettit did not seem at Wednesday’s courtroom listening to. It’s achievable he’ll be subpoenaed to appear for future hearings.
Gargotta directed him to surrender his passport to Colvard to turn over to the U.S. Trustee’s place of work.
The breadth and scope of Pettit’s alleged fraud has angered attorneys included. They say he’s still left an indelible stain on their job.
“Frankly, I believe the Condition Bar of Texas should be down right here cleaning up their have mess, and need to be below to support us not have to spend the value of seeking to get dollars back again from him,” attorney Dean Greer, who represents some lenders, stated through the hearing.
Chapter 11 is typically used by companies and people with large estates to reorganize their money owed. There is no expectation that will transpire in Pettit’s scenario. There is a possibility that the individual bankruptcy cases, which have been consolidated into 1 circumstance, could be converted to a Chapter 7 liquidation.
In personal bankruptcy, the court can grant a “discharge” that eliminates a debtor’s legal obligation to repay debts. On the other hand, Pettit is getting ready to “waive his discharge,” his attorney reported.
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