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Part of the real estate transferred by Chris Pettit before the bankruptcy filing will be returned as part of an agreement

SAN ANTONIO — A judge this week approved a settlement involving numerous properties that former San Antonio attorney Christopher “Chris” Pettit transferred before filing for bankruptcy in June.

As part of the deal, seven properties he transferred to Sin Reposo LLC — including buildings formerly occupied by his now-defunct law firm — will be handed over to his bankruptcy. The Chapter 11 trustee overseeing the bankruptcy assets simultaneously received court approval to retain the services of a real estate broker to sell them.

“It makes a lot of sense and reflects what I think will likely be a pretty large return to the estate,” U.S. Chief Bankruptcy Judge Craig Gargotta said of the settlement during a court hearing on Wednesday.

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“These funds will hopefully at some point go back to the creditors in this case, which of course are the people Mr. Pettit has represented during the course of his law practice,” the official said. judge. “So every day there is a delay is a delay for these individuals to get back some of their money that they entrusted to Mr. Pettit.”

Pettit’s law firm reported $13.8 million in assets and $112.8 million in liabilities in its latest bankruptcy schedules.

A building at 11923 Rustic Lane that former San Antonio attorney Christopher “Chris” Pettit used to make introductions to potential clients is among the properties returned to the bankruptcy estate as part of a settlement agreement.

He filed for bankruptcy for himself and his firm and gave up his lawyer’s license amid allegations that he stole tens of millions of dollars from his clients. He specialized in estate planning and personal injury cases, but also provided financial advice and investment management services.

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Pettit has been in jail since September 8, when Gargotta found him in contempt for violating a court order. Pettit, who attended Wednesday’s hearing by telephone, did not object to the settlement.

Pre-bankruptcy transactions

Under the agreement, Pettit and related entities entered into a series of real estate transactions from January through April. Sin Reposo bought nine properties for nearly $4.8 million, including closing costs and fees. Sin Reposo said the transactions freed up nearly $15 million in debt belonging to Pettit.

An apartment building at 488 Olmos Drive that former San Antonio attorney Christopher

An apartment building at 488 Olmos Drive that former San Antonio attorney Christopher “Chris” Pettit has agreed to sell is among the properties returned to his estate from bankruptcy as part of a settlement agreement.

Pettit needed money to pay Dr. Salvador Ortiz, a client who filed a lawsuit alleging Pettit took for his own benefit nearly $11 million that Ortiz handed over to fund an irrevocable trust. In March, Ortiz won a court judgment for nearly $11.8 million, a figure that later rose to over $13 million with interest, against Pettit and his company.

Ortiz received approximately $2.6 million from Pettit’s various property sales, according to the settlement.

Former San Antonio attorney Christopher

Former San Antonio attorney Christopher “Chris” Pettit completed a series of real estate deals before filing for bankruptcy. A number of those transactions were essentially canceled following a settlement agreement approved this week.

Jerry Lara, San Antonio Express-News/Staff Photographer

Eric Terry, the Chapter 11 trustee, claimed he could essentially reverse the transactions with Sin Reposo because Pettit and related entities entered into them with “the real intent to obstruct, delay or defraud creditors.” . The “avoid transactions” power prevents pre-bankruptcy payments to one creditor at the expense of other creditors.

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Among the properties transferred by Pettit to Sin Reposo were:

• 11902 Rustic Lane, San Antonio. It was the building that housed Pettit’s main law office and was appraised at $650,000.

• 11923 Rustic Lane. Pettit used the building to give presentations to potential clients. It was appraised at $700,000.

• A single-family home in the 15700 block of Deer Crest, San Antonio, where Pettit’s brother, Charles Joseph Pettit, was found dead in July. The police believe he committed suicide. The property was appraised at $386,000.

• A small apartment building at 488 Olmos Drive in Olmos Park worth approximately $800,000.

• A house on Canyon Lake worth $865,000.

• A beachfront condo in Port Aransas valued at $720,000.

However, not all transactions can be undone. Sin Reposo then sold two residential properties – one on Contour Drive and the other on Alameda Drive in Olmos Park – for a total of $4.3 million.

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Sin Reposo has also entered into a contract to purchase the property at 555 Argyle Ave. overlooking Olmos Dam in Alamo Heights for around $2 million. This agreement will be terminated as part of the settlement.

Former San Antonio attorney Christopher

Former San Antonio attorney Christopher “Chris” Pettit had entered into a contract to sell the property at 555 Argyle Ave. overlooking Olmos Dam at Alamo Heights in Sin Reposo for around $2 million. This contract will be terminated pursuant to a settlement agreement.

Sin Reposo valued the properties at $13 million, according to the settlement agreement.

About Sin Reposo

Its sole director and member is Garrett Glass, a San Antonio promoter who served as chief financial officer of EF EnergyFunders Inc., an oil and gas investment firm based in Calgary but which maintains its executive offices in San Antonio. He was appointed to this post in March.

Pettit had served on the board of EnergyFunders, but resigned in May after news broke that he had been sued by customers. Pettit and Glass met in January, Glass testified on Wednesday.

“Sin Reposo is very sensitive to the damage caused by the actions of Mr. Pettit and is very disappointed that anyone in our community is involved in such alleged transgressions,” Christopher Adams, a lawyer for the company, said in an e email of September 7. “Sin Reposo was not involved in any of these alleged transgressions and believes he was also misled by Mr. Pettit.”

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Adams could not be immediately reached on Friday.

Sin Reposo disputed any liability for the bankruptcy assets. He believes he only purchased two of the properties – 488 Olmos Drive and the Contour Drive property – and that the other transactions were not “true sales” because Pettit and related entities had the opportunity to buy them out. .

It also believes that the transactions were arm’s length and that Pettit and his entities received “significantly more in value for the properties than the consideration they transferred to Sin Reposo,” the settlement says.

Sin Reposo has a secured debt of approximately $740,000, which represents the purchase price and costs of the nine properties less the proceeds it received from the two properties it sold and a “litigation adjustment” of $275,000.

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