Sandy Hook families that won nearly $1.55 billion in legal judgements for Alex Jones calling the 2012 Connecticut School Shooting a hoax, have offered to settle this debt for pennies on the dollars — at least $85,000 over 10 years.
Last week, the offer was made to Jones in his personal bankruptcy case. Lawyers for the families stated in a legal document that they thought the proposal would be a viable solution to the bankruptcy cases of Jones and Free Speech Systems.
The attorneys accused the Infowars host in a sharply-worded document of failing to control his spending, living an “extravagant” lifestyle, failing to maintain the value of the assets he owned, refusing the sell them and failing to provide certain financial documents.
Jones has failed to fulfill his fiduciary duties as required by the Bankruptcy Code, in exchange for the breathing space he has been enjoying for nearly a year. “His time is over,” wrote the lawyers of Sandy Hook families.
Jones was given two options by the lawyers of his family: liquidate Jones’ estate and pay creditors or pay at least $8.5 million a year over ten years, plus 50% of all income above $9 million.
Vickie Driver, Jones’ bankruptcy lawyer, said that Jones could not pay the $85 million settlement over 10 years.
She said: “There is no way to prove that Mr. Jones made this much money in 10 years.”
Free Speech Systems, in a bankruptcy plan filed Nov. 18, said that it could pay its creditors around $4 million per year. This is down from the estimate of earlier this year which was $7 to $10 million. The company expects to earn about $19.2 millions next year by selling the dietary supplement, clothing, and other merchandise Jones promotes in his shows. Operating expenses, including salaries, will total around $14.3 million.
Jones’ most recent financial statement filed with bankruptcy court listed a total of about $13,000,000 in assets, including $856,000 in bank accounts.
Jones was receiving a salary every two weeks of $20,000, or $520,000 per year, under the bankruptcy case order. This month, the court-appointed restructuring official increased Jones’ salary to $57,700 every two weeks, or $1.5million a year. He said he had been “grossly underpaid” for his importance to the media company.
On Monday, Bankruptcy judge Christopher Lopez rejected the $1.5million salary. He said that the pay increase did not appear to have taken place in accordance with bankruptcy laws. A hearing was needed.
If Jones does not accept the offer from the families, Lopez will determine the amount he pays to the families and creditors.
Jones said repeatedly on his show in 2012 that the Sandy Hook Elementary School shooting in Newtown Connecticut was faked and staged to tighten firearm laws.
Jones was sued in Connecticut and Texas by relatives of Sandy Hook victims, but not all of them. They won judgments of nearly $1.5 billion against him. Lopez ruled in October that Jones couldn’t use bankruptcy to avoid paying the debt.
At the trials, relatives of the victims of the school shooting testified about being harassed by Jones’ followers. They sent threats, and confronted them in person accusing them as “crisis actors,” whose children had never existed.
Jones has appealed the judgements. He says he did not get a fair trial and that his speech is protected by the First Amendment.