As a jury in Connecticut Wednesday announced damages totaling nearly $1 billion against conspiracy theory-spreader Alex Jones, the far-right personality proclaimed his poverty.
Aint going to be happening, aint no money, Jones asserted on his livestream.
Few believe that, of course. One expert testified in an earlier trial that Jones and his companies were worth between $130 million and $270 million. Still, Jones and his lawyers have taken extraordinary steps in an apparent effort to obfuscate the amount and location of his wealth, leading many to wonder if the plaintiffs in the Sandy Hook defamation cases will ever see even a fraction of the judgment they fought for years to win in court, assuming it holds after post-trial motions and appeals.
The families could collect Jones current assets and future earnings, as long as theyre willing to pay attorneys to chase down and untangle his financial dealings, financial dispute experts told Grid.
It becomes a cat-and-mouse exercise, said James E. Berger, a partner at DLA Piper and an expert in judgment enforcement and asset recovery. The legal tools available to plaintiffs can sometimes be plodding and slow, but the statutory tools are in place to ensure that a judgment creditor can find whats out there.
The familys attorneys seem plenty willing to try.
We are going to chase Alex Jones to the ends of the earth, Joshua Koskoff, an attorney representing the Sandy Hook families, told MSNBC.
Some assets would seem easy to spot. For instance, Jones owns five houses in the Austin, Texas, area worth a combined $7.5 million, Forbes reported. Early this year, as the defamation trials neared, Jones transferred one of these homes, with an estimated worth of over $3.5 million, to his wife, Erika Wulff Jones, according to reporting by the New York Post.
But Jones has tied up much of his wealth in a complex knot of entities, financial transactions and bankruptcy proceedings. Jones primary corporate entity, Free Speech Systems, declared bankruptcy in July, a move widely interpreted as an effort to frustrate efforts to collect legal judgments against him. Also, Jones and his relatives have set up an alphabet soup of holding companies, some of which appear to exist only on paper, with opaque purposes. The families claim Jones has used the entities to shuffle money around and mask his true wealth.
A map of companies connected to Alex Jones, their owners, and select financial transactions. Sources: Court filings; OpenCorporates. (Grid; Saul Loeb/ Getty)
As well, Jones has reportedly moved millions into a family trust and repeatedly refused to comply with court-ordered discovery about the transactions, further complicating efforts to understand his financial status.
Until bankruptcy proceedings for Free Speech Systems are sorted out, assets connected to Jones or his companies will be virtually untouchable by the families. But those companies and their financial activities will come under increased scrutiny by the families attorneys and investigators.
Hes going to have to maintain his lifestyle, and in order to do that, you have to have access to money, said Christopher Weil, managing partner at Mintz Group, an investigative firm that specializes in global asset tracking. Thats the interesting piece here paying attention to what he does and what kinds of fingerprints he leaves.
Youll find the assets, even if its a painstaking process, said Berger. Whenever you have a high-profile judgment debtor who is very well known, there are likely to be both public sources of information and people who may be willing to talk, all of which can be very helpful to investigators.
Weil concurred. A lot of people will probably be willing to speak, its just about finding them.
The historic judgment against Jones is the result of Jones years of claims that the shooting was a false flag. Regardless of the amounts Jones ultimately pays out, experts agreed the judgment will likely follow Jones and his businesses for the rest of his life.
Bankruptcy Judge Christopher M. Lopez has authorized increased scrutiny of Jones companies due to their lack of candor during the bankruptcy proceedings.
In a subpoena filed the same day as the Connecticut verdict, the trustee overseeing the Free Speech Systems bankruptcy demanded information from several of the companies controlled by Jones and his family members; from Jones father, David Jones; from a company controlled by his sister, Marleigh Jones Rivera; and from Jones personal trainer and associate Patrick Riley.
Riley has come under recent scrutiny in the case because of a $400,000 payment and transfer of warehouse operations to his company, Blue Asension [sic] Logistics. The trustees subpoena came in response to the court directing them to investigate Free Speech Systems books.
Jones and his attorney, Norman Pattis, did not respond to a request for comment, but Jones has denied the fraud allegations to other publications. Jones and his attorneys have claimed there is nothing unusual about the companies he has set up and that any recent transfers of money were for Jones estate planning.
Sensing opportunity, Jones used the verdict as an opportunity to shake his proverbial tin cup at his online followers, promising them their donations were shielded from paying out his awards.
The money you donate does not go to these people, it goes to fight this fraud, and it goes to stabilize the company, Jones said on his show Wednesday as the judgments against him were read aloud. As of Monday, Jones donation page had over $230,000 donations, with more flowing every couple of minutes.
Not so fast, said lawyers with whom Grid spoke.
The Sandy Hook families may be entitled to future earnings of Free Speech Systems. Theres a catch: Pursuing future earnings could tie the size of their payouts to the success of the InfoWars empire. The families may not find that tolerable.
The bankruptcy court could also order the company to liquidate its assets, which would then go to the families and any other creditors, according to Avi Moshenberg, an attorney representing the families in the bankruptcy case in Texas.
Jones is transparent about his strategy to counter the families collection efforts: delay, appeal, frustrate.
For hundreds of thousands of dollars, I can keep them in court for years, I can appeal this stuff, we can stand up against this travesty, against the billions of dollars they want. Its a joke, Jones told his audience last Wednesday.
Perhaps, say experts. But keeping that strategy going can be harder than it sounds.
Its very easy to build complex structures. Its very hard to maintain them, explained Weil of the Mintz Group. What we find is that the people who have helped maintain these things have to be paid. They have to be induced to continue to operate the [businesses]. If money is drying up, if theres a big award out there, that will cause problems, Weil said. Peoples professional and personal interests wont align anymore.
Thanks to Lillian Barkley for copy editing this article.
View original post here:
Alex Jones claims bankruptcy: How will Sandy Hook families get paid? - Grid
- Alitalia Files for Bankruptcy, but Italy Balks at a Third Bailout - New York Times - May 3rd, 2017 [May 3rd, 2017]
- A Slow Bankruptcy Process Stops Locale-Reviving Jobs - Wall Street Journal (subscription) - May 3rd, 2017 [May 3rd, 2017]
- Bankruptcy auction for property of NASCAR artist Sam Bass ... - Charlotte Observer - May 3rd, 2017 [May 3rd, 2017]
- Obamacare helped make a 50% dent in personal bankruptcies ... - MarketWatch - May 3rd, 2017 [May 3rd, 2017]
- Pennsylvania Toy Seller Files For Bankruptcy - Wall Street Journal (subscription) - May 3rd, 2017 [May 3rd, 2017]
- Puerto Rico Enters Bankruptcy - Wall Street Journal (subscription) - May 3rd, 2017 [May 3rd, 2017]
- Puerto Rico Declares a Form of Bankruptcy - New York Times - May 3rd, 2017 [May 3rd, 2017]
- Farmer Mac Early Exclusive: Farm Bankruptcy Rates Low - AgWeb - June 6th, 2017 [June 6th, 2017]
- Washington weighs in on Westinghouse bankruptcy | News ... - Aiken Standard - June 6th, 2017 [June 6th, 2017]
- 4 Reasons Why Puerto Rico's 'Bankruptcy' Process Matters to US Residents - NBCNews.com - June 6th, 2017 [June 6th, 2017]
- Valeant: There Is Significant Bankruptcy Risk Here - Seeking Alpha - June 6th, 2017 [June 6th, 2017]
- Westinghouse bankruptcy draws federal scrutiny as VC Summer nuclear project's future remains unclear - Charleston Post Courier - June 6th, 2017 [June 6th, 2017]
- Bebe Avoids Bankruptcy Filing With Real-Estate Deals - Wall Street Journal (subscription) - June 6th, 2017 [June 6th, 2017]
- rue21 Bankruptcy Objections Filed - Bankrupt Company News (press release) (blog) - June 7th, 2017 [June 7th, 2017]
- ISH to emerge from bankruptcy as Seacor subsidiary - WorkBoat (blog) - June 7th, 2017 [June 7th, 2017]
- Curtains for the Pearl, as the Theater Company Files for Bankruptcy - New York Times - June 7th, 2017 [June 7th, 2017]
- Bankruptcy fraud earns Pepperell man 18 months | Boston Herald - Boston Herald - June 9th, 2017 [June 9th, 2017]
- Vikki Lindemuth favors appointment of trustee to handle husband's bankruptcy - Topeka Capital Journal - June 9th, 2017 [June 9th, 2017]
- Creditors seek to force bankruptcy of Tinley Park firm - Chicago Tribune - June 9th, 2017 [June 9th, 2017]
- Abengoa Bankruptcy Liquidation Plan Confirmed - Bankrupt Company News (press release) (blog) - June 9th, 2017 [June 9th, 2017]
- Retailer BCBG Unveils Going-Concern Bankruptcy Sales - Wall Street Journal (subscription) - June 9th, 2017 [June 9th, 2017]
- For Hartford, bankruptcy not an easy way out - The CT Mirror - June 9th, 2017 [June 9th, 2017]
- Why Students Should Be Able To Declare Bankruptcy On Their Loans - ATTN: - June 10th, 2017 [June 10th, 2017]
- Bankruptcy forces curtain to fall on community theater - Chicago Tribune - June 10th, 2017 [June 10th, 2017]
- Ex-Pepperell man jailed in bankruptcy case - Lowell Sun - June 10th, 2017 [June 10th, 2017]
- Owner of Joe's Crab Shack files for bankruptcy | Jacksonville News ... - Florida Times-Union - June 11th, 2017 [June 11th, 2017]
- Why test for bankruptcy law is a larger test for India - The Indian Express - June 11th, 2017 [June 11th, 2017]
- Tax trouble firms' most likely road to bankruptcy - Albuquerque Journal - June 12th, 2017 [June 12th, 2017]
- Darius Miles' Bankruptcy Sale Includes Signed LeBron James, Larry ... - Bleacher Report - June 12th, 2017 [June 12th, 2017]
- Winter Haven attorney gets prison for concealing assets in ... - News Chief - June 12th, 2017 [June 12th, 2017]
- Children's retailer Gymboree files bankruptcy, closing up to 450 stores - USA TODAY - June 12th, 2017 [June 12th, 2017]
- Another retailer has filed for bankruptcy - mySanAntonio.com - June 13th, 2017 [June 13th, 2017]
- Esperanza Unida bankruptcy delays city redevelopment efforts - BizTimes.com (Milwaukee) - June 13th, 2017 [June 13th, 2017]
- Square 1 Burgers files bankruptcy, blames over-saturated restaurant market - Orlando Sentinel - June 13th, 2017 [June 13th, 2017]
- Big KC manufacturer files for bankruptcy - Kansas City Business Journal - June 13th, 2017 [June 13th, 2017]
- Canadians Have Been Refinancing To Delay Bankruptcy - Seeking Alpha - June 13th, 2017 [June 13th, 2017]
- Gymboree Files For Bankruptcy, Plans To Close At Least 375 Stores - Forbes - June 13th, 2017 [June 13th, 2017]
- Sears, J. Crew, Claire's Are Bankruptcy Risks (SHLD) | Investopedia - Investopedia - June 14th, 2017 [June 14th, 2017]
- Tampa's Square 1 Burgers files for bankruptcy protection - Tampabay.com - June 14th, 2017 [June 14th, 2017]
- RBI, Banks And NPAs - First, Reform India's Bankruptcy Code, Then Force Defaulters Into It - Forbes - June 14th, 2017 [June 14th, 2017]
- Retail bloodbath: Bankruptcy filings pile up - CNNMoney - June 14th, 2017 [June 14th, 2017]
- Bankruptcy cases show we've become a nation of selective justice - New York Daily News - June 14th, 2017 [June 14th, 2017]
- Soupman of 'Seinfeld' Soup Nazi fame files for bankruptcy protection - USA TODAY - June 14th, 2017 [June 14th, 2017]
- Strack & Van Til bankruptcy case moved to Illinois - nwitimes.com - June 16th, 2017 [June 16th, 2017]
- Lawsuit: Wells Fargo revised mortgages in bankruptcy without permission - USA TODAY - June 16th, 2017 [June 16th, 2017]
- France's CGG files for bankruptcy protection - MarketWatch - June 16th, 2017 [June 16th, 2017]
- 'Soup Nazi' company files for bankruptcy - CNNMoney - June 16th, 2017 [June 16th, 2017]
- France's CGG Group Files for Bankruptcy Protection - Wall Street Journal (subscription) - June 17th, 2017 [June 17th, 2017]
- Company of businessman behind polo facility expansion files for bankruptcy protection - Fauquier Times - June 17th, 2017 [June 17th, 2017]
- Vehicles involved in Dusty Old Cars bankruptcy to be auctioned - WMUR Manchester - June 17th, 2017 [June 17th, 2017]
- Could Illinois be the first state to file for bankruptcy? - CBS News - June 17th, 2017 [June 17th, 2017]
- Takata Said to Ready Bankruptcy Filing Ahead of Sale to Rival - New York Times - June 17th, 2017 [June 17th, 2017]
- Greece escapes brush with bankruptcy but austerity still bites - FRANCE 24 - June 17th, 2017 [June 17th, 2017]
- Pawnbroker A-OK cites embezzlement in multimillion-dollar bankruptcy - Wichita Eagle - June 18th, 2017 [June 18th, 2017]
- Clock is Ticking on India's Bad Bank Debts Under Bankruptcy Laws - Bloomberg - June 18th, 2017 [June 18th, 2017]
- Surveyor dealing with fine, bankruptcy - Muncie Star Press - June 18th, 2017 [June 18th, 2017]
- Mode Media Assets Acquired by Wedding Ad Network BrideClick in Bankruptcy Deal - Variety - June 18th, 2017 [June 18th, 2017]
- San Bernardino officially out of bankruptcy - San Bernardino County Sun - June 20th, 2017 [June 20th, 2017]
- 22 retailers that are at serious risk of bankruptcy - Chron.com - June 20th, 2017 [June 20th, 2017]
- What to expect in defective air bag maker Takata's looming bankruptcy - USA TODAY - June 20th, 2017 [June 20th, 2017]
- Could Illinois file for bankruptcy? - FOX Illinois - June 20th, 2017 [June 20th, 2017]
- Exploding airbags: Takata shares plummet 17% on bankruptcy reports - CNNMoney - June 20th, 2017 [June 20th, 2017]
- These 14 Stores May Be on the Brink of Bankruptcy | NBC Southern ... - NBC Southern California - June 21st, 2017 [June 21st, 2017]
- Medical bankruptcies - WEAR - June 21st, 2017 [June 21st, 2017]
- After five long years, San Bernardino is officially out of bankruptcy. What's next? - Los Angeles Times - June 21st, 2017 [June 21st, 2017]
- Takata to file for bankruptcy Monday, SMFG to provide bridge loan: sources - Reuters - June 22nd, 2017 [June 22nd, 2017]
- Sears Canada files for bankruptcy - CNNMoney - June 22nd, 2017 [June 22nd, 2017]
- Foundation Healthcare Chapter 11 Bankruptcy - Bankrupt Company News (press release) (blog) - June 23rd, 2017 [June 23rd, 2017]
- Implant Sciences Bankruptcy Objections Filed - Bankrupt Company News (press release) (blog) - June 23rd, 2017 [June 23rd, 2017]
- Puerto Rico Bankruptcy: Uncertainty, But Also Stock Profit Opportunity - Seeking Alpha - June 23rd, 2017 [June 23rd, 2017]
- Lakeland day care files for bankruptcy without paying workers - wreg.com - June 23rd, 2017 [June 23rd, 2017]
- Sears Canada Closing 59 Stores as It Seeks Bankruptcy Protection - Fortune - June 23rd, 2017 [June 23rd, 2017]
- Takata to file for bankruptcy Monday, SMBC to provide bridge loan: Sources - CNBC - June 23rd, 2017 [June 23rd, 2017]
- How Sears Canada's Bankruptcy Impacts Sears Holdings Corp. - Seeking Alpha - June 23rd, 2017 [June 23rd, 2017]
- Augusta native sworn in as newest Bankruptcy Court judge - The Augusta Chronicle - June 24th, 2017 [June 24th, 2017]
- Takata reportedly planning to file for bankruptcy - CNBC - June 24th, 2017 [June 24th, 2017]
- Bankruptcy - money_selfhelp - June 24th, 2017 [June 24th, 2017]
- Japan press - Takata expected to file for bankruptcy protection in Tokyo - ForexLive - June 26th, 2017 [June 26th, 2017]
- Bankruptcy guru Edward Altman sees similarities to 2007 in the credit market today - Yahoo Finance - June 26th, 2017 [June 26th, 2017]
- Takata's woes expected to continue beyond bankruptcy filing amid mounting recall costs - CNBC - June 26th, 2017 [June 26th, 2017]