From Bankruptcy in Texas to Sanctions in Connecticut, Alex Jones’ Legal Troubles Are Just Beginning
It’s been a bad week for Alex Jones, and even worse for his lawyers.
On Friday, US Bankruptcy Judge Christopher Lopez called an emergency hearing regarding Free Speech Systems (FSS), the parent company of Infowars, where Jones spews his bile for millions every day. It is the second bankruptcy in the last five months for an entity linked to Jones, after the shitposter placed three worthless front companies into bankruptcy in a futile effort to end defamation lawsuits brought by the families of the victims of Sandy Hook. Since then, he “remembered” that FSS owed over $60 million to a Nevada LLC called PQPR Holdings Limited LLC for supplements already provided, forcing FSS to file for bankruptcy. And hey you don’t knowit turns out that PQPR is 100% owned by Alex Jones and his parents, David and Carol.
What are the chances!
Jones cried poor for years after being shunned from mainstream social media sites, even testifying on the stand at Sandy Hook’s first trial that any jury award over $2 million would ruin him financially. It appears that, not really. Indeed, FSS demand Friday’s emergency hearing because after the trial, sales skyrocketed beyond the $600,000/week forecast to between $800,000 and $900,000. Loyal Infowars customers sucked up those iodine pills like candy after watching Alex Jones martyred for free speech, so now FSS needs more money from the estate to pay its vendors — or, uh , “sellers” as the case may be.
Sandy Hook plaintiffs oppose increasing the draw on the theory that the sellers are entities related to Jones, and therefore the court is being asked to put even more money directly into Jones’ pocket. Besides the obvious issues with PQPR, who suddenly realized he needed to be prepaid, creditors are challenging Jones’ decision to outsource the execution of FSS loot sales to a logistics company formed by his personal trainer. about ten minutes before the bankruptcy filing.
And no, This is not a joke. Patrick Reiley, owner of new logistics company Blue Ascension, said Jones hired him in 2016 “to help him and his dad stay healthy and be a beacon of well-being.” Reiley’s responsibilities grew to include “handling issues as they arose” and acting as a go-between for people who wanted to get in touch with Jones.
When shit was about to hit the fan with the tort lawsuits, Jones came to Reiley with a business opportunity. How would Reiley like to hire Jones’ maritime employees to do the exact same job, but for an outside entity? What if Jones added the storage space and equipment for free?
“Sweeeeeeet, man,” we imagine he replied, while making the ten sign. And that’s how FSS came to remove its shipping responsibilities from the books. Additionally, Jones threw in a personal check for $400,000 the day before Reiley testified. LOL!
In the event, Judge Lopez granted the requested relief for a few weeks, but promised more oversight and a possible recovery.
Then on Monday, Jones received bad news from US bankruptcy judge Julie Manning in Connecticut, who fired Connecticut plaintiffs’ Sandy Hook libel suit in state court. That means the big trial with more than a dozen plaintiffs can go ahead as planned next month against Jones alone.
“On multiple occasions, plaintiffs have had to pursue their claims in the United States District Court for the District of Connecticut, the United States Bankruptcy Court for the Southern District of Texas and this Court. During jury selection and only weeks before the start of the trial in Connecticut Superior Court, the plaintiffs were involuntarily remanded to this Court,” the court wrote, noting years of dilatory filings by Jones and his companies. “The plaintiffs’ claims are ready for adjudication in Connecticut Superior Court. If removal does not occur, the harm to the claimants far outweighs any possible harm to FSS. »
It was bad news for longtime Jones attorney Norm Pattis, who tried to block Connecticut Superior Court Judge Barbara Bellis to sanction him on the theory that she no longer had jurisdiction over the case. The court is investigating allegations that Pattis improperly passed on the Connecticut plaintiffs’ confidential medical records to Alex Jones.
During the trial in Texas, plaintiffs’ attorney Mark Bankston dramatically confronted Jones on the witness stand, saying, “Did you know your attorneys screwed up and sent me your entire history of your SMS 12 days ago?”
In fact, Jones’ Texas attorney, Andino Reynal, appears to have shared all of Jones’ phone content with the opposing attorney, which is how Bankston and everyone else involved discovered that the medical and psychiatric records of the Connecticut plaintiffs were forwarded willy-nilly.
Judge Barbara Bellis quickly summoned Pattis and Reynal to her courtroom to explain. In a brief virtual audition this morning, she gave the case to Reynal, noting that this is the fourth time in this case in which the court met to consider sanctions against a lawyer. The parties have been instructed to schedule evidentiary hearings before the trial begins in September.
Pattis’ part took place in person, but Connecticut Public Radio reporter Frankie Graziano reports that Pattis’ first character witness was the former chief state attorney, who was expelled three months ago in a hiring scandal. That’s about what you’d expect from a lawyer who pulls his pants down and shouts racial epithets for “comedy” or laughs while his client calls the opposing attorney “a white Jewish little son of a bitch” on the spot. ‘antenna.
The procedure will be joined with Reynal’s hearing and will continue on August 25, since the evidence and the underlying act overlap.
Auspicious omens all around!
Bankruptcy of Free Speech Systems LLC [Docket via Court Listener]
Dye Liz lives in Baltimore where she writes on law and politics.