DOJ questions Alex Jones’ bankruptcy filing; Sandy Hook’s lawyer calls it ‘sinister’

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The Justice Department challenged a bankruptcy filing by far-right Infowars radio host Alex Jones three companies after losing defamation lawsuits filed by families of victims of the Sandy Hook massacre.

The Chapter 11 filing “raises numerous questions—the answers to which may show these cases are one Abuse of the bankruptcy system‘ said court documents filed Thursday by the U.S. Trustee Program, the Justice Department’s bankruptcy watchdog.

Chapter 11 filings allow a company to continue its operations — and pause civil litigation — while it devises a plan to get out of debt.

Jon Beatty, an attorney for the families of Sandy Hook victims, described Jones’ move as one “dark” strategy to avoid liability in his comments Friday at a federal bankruptcy hearing in Texas, where Jones lives. Another plaintiffs attorney, Cliff Walston, told the judge that Jones and his companies had filed a complaint $56 to $78 million a year in sales, according to the Austin American-Statesman.

The families intend to file a motion to dismiss the bankruptcy reorganization suit.

The conspiracy theorist and his companies were found liable in Connecticut and Texas last year after Jones repeatedly claimed the 2012 shooting of 20 children and six adults at Connecticut’s Sandy Hook Elementary School was staged by “crisis actors”. “Joke” used to be part of an anti-gun stunt. He now admits that the massacre happened.

Not only did Jones benefit from his lies, but the families of the dead children were also subjected to death threats, hate mail and phone calls from his supporters after Jones attacked the families on his radio program.

An upcoming trial was scheduled to determine the amount of damages Jones and his companies had to pay. But last Sunday, Jones, a multi-millionaire, filed for bankruptcy protection InfoW who owns copyrights and domain names associated with InfoWars.com, IWHealth, and Prison Planet TV.

The US trustee program is urging the judge to deny Jones’ request to appoint supervisors to oversee a proposed limited victim compensation fund. The strategy “appears to be only the first step for debtors to implement Jones’s … scheme to avoid the burdens of bankruptcy reap its benefits‘ the trustee said in court filings.

Kyung Lee, an attorney for Jones’ company, insisted the move was a “endeavor in good faith here to do something constructive” that would “allow for a resolution of the dispute that has been going on for 10 years,” Bloomberg reported.

A court filing earlier this month by the parents who are suing Jones already blamed him Divert millions of dollars to an “alphabet soup” of shell companies to avoid damage by squandering his fortune. The lawsuit claims he withdrew $18 million from his businesses after the first lawsuit was filed against him in 2018.

“If I am a plaintiff, I don’t trust any of itPatrick Jackson, a Delaware-based restructuring attorney who has handled cases involving similar litigation, told Bloomberg. “There is a good argument here that these companies have no business being in bankruptcy.”

Attorneys representing Jones and his companies had argued that the defamation lawsuits were designed to stifle freedom of expression on matters of public interest.

There was no verdict in the bankruptcy proceedings on Friday. Next, the parties will meet on April 29 for a status conference.

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