San Antonio bankruptcy judge denies Chris Pettit’s bid to get out of jail on contempt of court charge

Christopher “Chris” Pettit will remain in jail after a bankruptcy court judge ruled Wednesday that the disgraced former lawyer had not done enough to clear himself of a contempt of court charge. Pettit, who is accused of stealing millions of dollars entrusted to him by his one-time clients, has been locked up for about two months at the Karnes County Detention Facility for failing to comply with court orders. Telling Pettit he holds the keys to his jail cell, Chief U.S. Bankruptcy Judge Craig Gargotta set 17 conditions the ex-attorney must satisfy to be released. First on the list is that Pettit turn over a business laptop to the trustee administering the bankruptcy estate. Pettit has given conflicting accounts regarding its whereabouts.

“It would really move things along if Mr. Pettit would come clean about what happened with regard to the laptop, good or bad, so we could move on in this case,” Gargotta said. The laptop purportedly contains information the trustee wants regarding Pettit’s clients and their funds. “I’m not suggesting he say this, but if Mr. Pettit were to say, ‘I destroyed it’ … then if that really was the truth, then we would know … that as a result (the trustee and creditors are) not going to get that information,” the judge added. “Really, what’s at issue here is just saying where it is.” The judge was not convinced that Pettit, who appeared for the hearing via video, has been forthcoming about the laptop’s location. Counsel for the trustee previously reported that Pettit failed to disclose his ownership of two Mercedes-Benz automobiles. On Wednesday, it was revealed he also failed to report ownership of a mobile home that has been used by the family of a woman taking care of Pettit’s minor son. Pettit, 55, filed bankruptcy protection for himself and his law firm June 1 after allegations surfaced that he had absconded with money belonging to his clients. He surrendered his law license in lieu of discipline and shuttered his law practice. The FBI has been investigating the allegations. Roughly $260 million in claims have been submitted by creditors in the bankruptcy cases, making it among the largest ever filed in San Antonio.