Former San Antonio Attorney Christopher John Pettit, 56, pleaded guilty in federal court on Thursday to wire fraud and money laundering charges. Court documents revealed that between October 2019 and July 2022, Pettit deceived his clients into depositing money with his firm, Chris Pettit and Associates, PC, under the pretense of providing various services, including living trusts, irrevocable trusts, estate planning, investments, and real-estate transactions. Instead, Pettit misused these funds for his personal gain and operated a Ponzi-type scheme.

Pettit employed several fraudulent schemes, such as opening trustee accounts with client funds and diverting the money into his personal accounts, rather than using it for the intended trust purposes. He also falsely promised to invest client money in high-yield bonds, redirecting the funds to his personal account. Additionally, Pettit posed as a Qualified Intermediary for a 1031 real-estate exchange, convincing clients to wire millions of dollars into accounts he controlled, which he then misused for personal enrichment. He used the victims’ funds to pay off other debts and support an extravagant lifestyle. The schemes resulted in estimated losses ranging from $20 million to $65 million for the victims.

Pettit pleaded guilty to three counts of wire fraud and three counts of money laundering. He is set to be sentenced on January 11, 2024. If convicted, he could face a maximum penalty of 20 years in prison for wire fraud and up to 10 years for money laundering. The final sentence will be determined by a federal district court judge, taking into account U.S. Sentencing Guidelines and other statutory factors.

The announcement was made by U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Field Office. The FBI, in collaboration with the Texas State Securities Board and the Texas Department of Public Safety, is actively investigating the case. Assistant U.S. Attorneys Robert Almonte and Kelly Stephenson are prosecuting the case.