Pettit testified Wednesday and said he will stay in San Antonio to be with his son and look for work.
The FBI has been investigating the allegations against him. Representatives from the Justice Department attended Wednesday’s court proceedings. Pettit’s attorney told the judge he’s offered to sit down with the DOJ to talk about many issues involving the case, includingGargotta expressed reservations about allowing Pettit’s release, saying he was not convinced Pettit had fully complied with the court’s order.
Keeping Pettit in jail won’t accomplish what the trustee is trying to do in getting his cooperation as the bankruptcy moves forward to the next phase — the investigation into possible legal claims against other parties, Gargotta said. Terry has argued that the assets were acquired with money misappropriated from Pettit’s former clients. During the hearing, though, Pettit’s lawyer said he made “legitimate money” that went into his home, retirement accounts and insurance policies.
Smeberg added that he believes Pettit has had a “change of heart” and will work with the trustee and creditors for the benefit of the bankruptcy estate.Gargotta had set 17 conditions for Pettit to satisfy to be released from jail. Atop the list was turning over his business laptop to the trustee. Pettit still has not done that, testifying that he doesn’t have it or know where it is. The laptop purportedly contains information the trustee wants regarding Pettit’s client’s and their funds.
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