Efforts are ramping up to recover assets for the estate of disgraced ex-San Antonio lawyer Chris Pettit, with lawsuits aimed at a breadth of associates including his friends, banks, and even one of his victims. According to an Express News report, Eric Terry, the trustee in Pettit’s bankruptcy case, alleges that Pettit funded a luxurious lifestyle with funds that should have gone to repaying defrauded clients. The trustee claims that these were fraudulent transfers, and accordingly, he has filed 13 lawsuits in an attempt to undo these transactions and salvage what can be recovered.
Terry suggests Pettit engaged in financial misdeeds with his "inner circle of friends and intimate partners," with sizable amounts of money—reaching into the hundreds of thousands—allegedly shared among them. These actions, in the view of the trustee, effectively diverted assets from Pettit's clients, who have since become creditors in the bankruptcy case. Among those sued are associates believed to have received cars and other lavish gifts bought with embezzled funds. These creditors have filed more than $250 million in claims, but so far, little has been reimbursed, as highlighted by the same Express News article.
Frost Bank and the Bank of San Antonio are also embroiled in the legal actions, accused by Terry of turning a blind eye to Pettit's suspicious transactions that facilitated his fraudulent scheme. Moreover, a separate lawsuit names Wells Fargo Bank as a "willing participant in the scheme," accusing it of aiding Pettit due to the potential movement of millions through accounts at the institution. This complaint, outlined by Express News, amplifies the scrutiny on financial entities associated with Pettit’s dealings.
Among the individuals targeted in the lawsuits are two Florida men, Justin Hebert and Brian Beehler, who the trustee says received substantial monetary gifts including vehicles such as a 2021 Porsche Cayenne and a 2020 Porsche Taycan. There are also allegations of nearly 3,400 transactions for the sole benefit of Hebert, per the information obtained by Express News. Meanwhile, victims of Pettit's fraud scheme continue their wait for possible restitution as legal proceedings unfold.
The broad scope of litigation reflects the large scale of Pettit’s financial crimes, for which he is currently serving a 50-year prison sentence after pleading guilty to wire fraud and money laundering. While Pettit’s actions have had clear repercussions on a wide circle of associates and institutions, the path to recompense for his victims remains fraught with challenges, as not all stolen funds can be effectively traced or recovered, according to the trustee’s statements in the lawsuits. Efforts to reach the defendants for comment have been largely unsuccessful, adding another layer of complexity to the ongoing attempts at asset recovery.
