Ex-San Antonio lawyer Chris Pettit was ‘one-stop fraud shop,’ trustee’s representative says

Ex-San Antonio lawyer Christopher “Chris” Pettit was a “one-stop fraud shop,” an attorney representing the trustee overseeing Pettit’s bankruptcy case said Monday. “Basically, that one stop involved trusts, it involved tax filing, it involved probate, it involved personal injury,” attorney Patrick Huffstickler told Chief U.S. Bankruptcy Judge Craig Gargotta at a hearing. “He was a licensed financial adviser so it involved investments. So there are a lot of documents.” Pettit, a longtime San Antonio attorney, filed for bankruptcy protection and surrendered his Texas law license this month after allegations that he stole millions from clients. One creditor’s lawyer estimated at least $50 million has been misappropriated.

The allegations have triggered an FBI investigation but no charges have been filed. Pettit did not attend Monday’s proceeding. “I will say this on the record: At some point he’s coming to court,” the judge said. “So you can just convey that to him that he’s going to have to come to court at some point in time — live and in person.” Eric Terry, the Chapter 11 trustee, is expected to meet with Pettit sometime this week — possibly as early as Tuesday — to get a better handle on the estate and client files. Pettit listed $27.8 million in assets and $115.2 million in liabilities in his bankruptcy — among the largest ever filed in San Antonio. His law firm, which has been shut down, also entered bankruptcy but has yet to report its assets and debts. The two cases have been consolidated. As trustee, Terry, a San Antonio attorney, will be responsible for locating assets for distribution to creditors.