Conspiracy Theorist Alex Jones' Bankruptcy Plans Clash with Sandy Hook Families
Conspiracy theorist Alex Jones' latest bankruptcy plan has sparked controversy as it proposes to pay Sandy Hook families a minimum total of $55 million over 10 years. This amount is significantly lower than the nearly $1.5 billion awarded to the relatives in lawsuits against Jones for calling the 2012 Newtown school shooting a hoax.
In response, the families have taken matters into their own hands and filed their own proposal. Their plan seeks to liquidate nearly all of Jones' assets, including his media company Free Speech Systems, and distribute the proceeds to them and other creditors.
Both plans were filed late Friday in U.S. Bankruptcy Court in Houston and will be subject to debate and challenges over the next two months. Hearings are scheduled for February to determine the final order regarding the amount Jones will be required to pay out.
Jones and Free Speech Systems, based in Austin, Texas, filed for bankruptcy last year as the families were awarded over $1.4 billion in a Connecticut lawsuit and an additional $50 million in a Texas lawsuit. A third trial is pending in Texas in a similar lawsuit over Jones' hoax conspiracy, filed by the parents of another child killed in the school shooting.
The new bankruptcy filings came a day after the 11th anniversary of a gunman's killing of 20 first-graders and six educators at Sandy Hook Elementary School in Newtown, Connecticut, on Dec. 14, 2012.
Relatives of some of the victims sued Jones in Connecticut for defamation and infliction of emotional distress for claiming the school shooting never happened and was staged by "crisis actors" in a plot to increase gun control.
Eight victims' relatives and an FBI agent testified during a monthlong trial in late 2022 about being threatened and harassed for years by people who deny the shooting happened. Strangers showed up at some of their homes and confronted some of them in public. People hurled abusive comments at them on social media and in emails. Some received death and rape threats.
Jones' lawyers did not immediately respond to email messages Saturday.
Christopher Mattei, a Connecticut attorney for the Sandy Hook families, said Jones' proposal "falls woefully short" of providing everything the families are entitled to under bankruptcy laws.
"The families' plan is the only feasible path for ensuring that Jones' assets are quickly distributed to those he has harassed for more than a decade," Mattei said in a statement Saturday.
In an effort to settle with the families, Jones has proposed a plan to pay them at least $5.5 million per year for 10 years. However, this offer doesn't seem to be much different from what Free Speech Systems, the parent company of Jones' Infowars show, offered in its recent bankruptcy case. Free Speech Systems had proposed to pay creditors approximately $4 million per year, a significant decrease from the initial estimate of $7 million to $10 million annually.
According to the company, it anticipates earning around $19.2 million next year from the sale of dietary supplements, clothing, and other merchandise that Jones promotes on his shows. However, operating expenses, including salaries, are expected to total about $14.3 million.
In his personal financial statements submitted to the bankruptcy court, Jones listed approximately $13 million in total assets, including about $856,000 in various bank accounts. Recently, a judge granted Jones permission to sell some of his assets, such as guns, vehicles, and jewelry, in order to raise funds for creditors.
The families' proposed plan involves the creation of a trust that would liquidate nearly all of Jones' assets, with the exception of his primary residence and other exempt holdings. This trust would have extensive powers, including the ability to recover money that Jones has paid or given to others if those transfers were deemed unlawful.
Families Accuse Jones of Excessive Personal Spending
A group of families has raised concerns about the personal spending habits of Jones, claiming that he has been spending over $90,000 a month this year. In addition, they have filed another lawsuit alleging that Jones has hidden millions of dollars in an effort to safeguard his wealth. One of Jones' lawyers has dismissed these allegations as "ridiculous."
Jones Appeals $1.5 Billion Lawsuit Awards
Jones is currently appealing the $1.5 billion in lawsuit awards that were granted to the families. He maintains that his comments about the shooting were protected by his right to free speech.
