Sandy Hook families on Thursday accused InfoWars founder Alex Jones of hiding assets while declaring bankruptcy, The Hill reports.
Attorneys for the families of Sandy Hook victims submitted a filing in federal bankruptcy court alleging that Jones has “systematically transferred millions of dollars” to himself and relatives from his company while claiming bankruptcy.
The filing asked to have a bankruptcy trustee take over Free Speech Systems, InfoWars’ parent company, and asked the court to appoint an oversight committee to oversee Jones’ finances.
“Alex Jones is not financially bankrupt; he is morally bankrupt, which is becoming more and more clear as we discover his plots to hide money and evade responsibility,” said Kyle Farrar, a lawyer for the Sandy Hook families. “He used lies to amass a fortune, and now he is using lies and fictions to shield his money.”
$62 million:
The filing accused Jones of funneling nearly $62 million from his business into other financial vehicles starting in 2018, when the families first sued.
Free Speech Systems then declared bankruptcy, with Jones citing $54 million in debt to PQPR Holdings, a company owned and operated by Jones and his parents.
The debt is “a centerpiece of Jones’ plan to avoid compensating Sandy Hook families,” the filing said.
The filing claims that Jones funneled $11,000 per day and up to 80% of InfoWars’ sales revenue to PQPR after the lawsuits were filed.
The families say the payments are “fraudulent transfers designed to siphon off the debtor’s assets to make it judgment-proof.”
Jones faces big bills:
Jones is facing three defamation lawsuits from families of Sandy Hook victims.
A Texas jury ordered him to pay nearly $50 million to the parents of a child killed in the massacre for lying that the shooting was staged.
But Jones’ profits have also increased amid the trials.
InfoWars sales are up about 50% since the Texas trial to nearly $1 million per week and could reach $450,000 per day by the end of the month, Jones’ reps told the bankruptcy court.
Jones has also raised more than $8 million in donations.
