Attorneys: Alex Jones hiding assets from Sandy Hook families

Nine families of children killed in the mass shooting at Sandy Hook Elementary School have requested a Texas judge to further consider an alleged debt owed between two companies controlled by Alex Jones, arguing it was set up to avoid liability and shepherd funds to him.

Attorneys Avi Moshenberg, Jarrod Martin, Ryan Chapple and Randy Williams filed the motion, which concerns a $54 million debt allegedly owed by Free Speech Systems LLC to PQPR Holdings Limited on Thursday in U.S. Bankruptcy Court in Houston.

“The debtor claims these payments are part of a ‘financial disentanglement between the two companies,’” the attorneys wrote in the court filing. “The

Sandy Hook families claim they are fraudulent transfers designed to siphon off the debtor’s assets to make

it judgment-proof.”

In June 2021, representatives of FSS testified they were “unaware” of any debt the company had taken on since 2012, the families alleged in court documents

At the time, the company would have “owed over $50 million to PQPR under two promissory notes and a security agreement,” the families alleged in the filings.

But in June 2022, a different company representative said FSS had accrued the debt by outsourcing the handling of orders and warehousing for InfoWars products, beginning in December 2014.

“When asked who authorized the debtor to assume this supposed debt, the debtor’s June 2022 testimony was that, ‘I don’t think it was a conscious decision on anyone’s part . ... I don’t think I would use the word ‘authorized,’” attorneys representing the Sandy Hook families noted in the court filing.

The FSS representative testified the company had “received monthly invoices from PQPR requesting payment for product,” but it had not produced such documents over the course of the case, despite requests, attorneys said.

FSS started paying PQPR between $11,000 a day and $11,000 per week, as well as a portion of its sales’ revenue, beginning in the summer, the attorneys alleged.

In June, Jones also “testified that PQPR pays FSS most of its profits to compensate FSS for advertising,” despite the debt owed, according to the motion.

Jones said he knew the most about the arrangement in the company, but forgot the exact details, the attorneys wrote in the court filing.

In the motion, the families asked a judge to appoint a committee to investigate the matter and remove FSS’ alleged debt from its books.

“The debtor alleges it meets the subchapter V debt limits — which it has the burden to prove — by securing alleged debt with an entity subject to Jones and his family’s control and filing bankruptcy before the Sandy Hook families’ claims were liquidated,” the attorneys said. “But FSS’ conduct leading up to and since filing this bankruptcy reveals an out-of-control debtor that is still operated by Jones for the sole benefit of Jones.”

A person appointed as a chief restructuring officer for FSS had failed to make progress, the families said, alleging he also had a conflict of interest in the matter by working on behalf of InfoWars debtors and FSS simultaneously.

Jones allegedly took between $18 million and $62 million from FSS during the lawsuits, attorneys alleged in the court filings.

Jones also allegedly received between $4 and $5 million in cryptocurrency on behalf of FSS, the families said in the court filing, but placed the funds into his personal bank account.

Attorneys Raymond Battaglia, Kyung Lee and R.J. Shannon, representing Free Speech Solutions LLC in the bankruptcy case, did not immediately respond to a request for comment Saturday.

A Texas jury earlier this month awarded $49 million in damages to the parents of a slain Sandy Hook boy Jones defamed when Jones called 2012 slaying of 20 first-graders and six educators at Sandy Hook Elementary School “staged,” “synthetic,” “manufactured,” “a giant hoax,” and “completely fake with actors.”

A second jury trial is scheduled for next month in Connecticut to determine how much Jones must pay the FBI agent and eight families he defamed.

Sergio Flores / Getty Images The attorneys for nine Sandy Hook families claim in a new court filing that Alex Jones has been making “fraudulent transfers” between his companies to hide assets.