Judge orders Chris Pettit’s release from jail after ex-lawyer clears himself of contempt charge

A San Antonio bankruptcy judge ordered Christopher “Chris” Pettit’s release from jail Wednesday after finding the ex-lawyer had cleared himself of a contempt of court charge. Pettit, who is accused of stealing millions of dollars from his former clients, had been in jail for three months for failing to comply with a court order in his bankruptcy case. He was expected to be released Wednesday afternoon. Pettit took the witness stand Wednesday morning to say he intends to stay with friends until he finds another place to live. “My plans are to see my son and look for work,” Pettit said, adding that he will remain in the San Antonio area. He has a minor son who has been living here with his nanny. Before being sent to jail, Pettit had been living in a Florida mansion at Disney World.

Chief U.S. Bankruptcy Judge Craig Gargotta issued his order after Pettit agreed to surrender his $1.8 million Stone Oak home, retirement accounts valued at about $500,000 and various life insurance policies to the bankruptcy estate as part of a compromise with the Chapter 11 trustee overseeing assets. Pettit had been held in the Karnes County Detention Facility since Sept. 8. His incarceration came after the trustee had asked the judge to hold Pettit in civil contempt for violating a court order prohibiting him from transferring or disposing of any personal property. He filed for bankruptcy for himself and his law firm June 1 after about a dozen lawsuits were filed by his former clients alleging that he had absconded with their money. Pettit gave up his law license and closed his law office, which specialized in estate planning and personal injury cases. Creditors have submitted claims in the bankruptcies totaling about $260 million. The FBI has been investigating the allegations against him and representatives from the Justice Department attended Wednesday’s court proceedings. Pettit’s attorney told the judge he’s offered to sit down with the DOJ to talk about many issues involving the case, including Pettit’s claim that he had been blackmailed by former employees of his law firm.