Embattled San Antonio lawyer, accused of defrauding clients of millions, files huge bankruptcy case

Embattled San Antonio attorney Christopher “Chris” Pettit and his law firm, accused of defrauding clients of millions of dollars, have filed for bankruptcy protection. Pettit listed assets of almost $27.8 million and debts of $115.2 million in his individual Chapter 11 petition, making it one of the largest individual bankruptcy cases ever filed in San Antonio. His firm, Chris Pettit & Associates, reported assets valued at no more than $50,000. The filings Wednesday trumped plans by six Pettit creditors to file involuntary Chapter 7 cases against him and his firm today, said Raymond Battaglia, their San Antonio bankruptcy lawyer.

The bankruptcy lawyer representing Pettit and his firm has indicated he intends to ask the court to appoint a trustee to oversee the debtors’ estates, Battaglia said. “This case is going to require someone who can trace assets and trace transfers and things that (Pettit’s) done with other people’s monies over the last couple of years,” he added. The bankruptcies come after numerous lawsuits against Pettit and his firm, most alleging they stole millions of dollars from clients. He has given general denials in responses to some of the suits but he and his firm also reached agreed judgment with some plaintiffs who were awarded — at least on paper — millions in economic and punitive damages. Others allege they lost far less but, nonetheless, amounts representing their life savings. “It’s just sad,” Battaglia said. “They trusted him, and that’s a shame. As a lawyer, I’m ashamed that someone would do this. Some of these people were in pretty dire situations at the time he stole their money.” The FBI also is investigating.