Kristi Alfaro, left, wife of indicted San Antonio oil and gas businessman Brian Alfaro, center, will pay $370,000 to a court-appointed receiver under a settlement approved yesterday by a bankruptcy judge, the San Antonio Express-News reported. Bankruptcy Judge Craig Gargotta’s ruling also clears the way for receiver J. Scott Rose to begin selling some real estate owned by Kristi and Brian Alfaro, including a Port Aransas lakeside home valued at about $1 million. Rose was appointed a year ago to recover assets on behalf of nine investors who won an $8 million court judgment against Brian Alfaro and his companies after the investors alleged that they had been defrauded in a Ponzi scheme. Alfaro was accused of spending investors’ money on expensive homes and exotic sports cars. Alfaro faces a criminal trial in February on eight counts of mail fraud in connection with his alleged misuse of the investors’ money. He has pleaded not guilty. Rose had accused the Alfaros of resisting his efforts to collect the judgment “by questionable use of their children, newly created entities” and a bankruptcy filing by Kristi Alfaro, according to a court filing. Her lawyer, Morris “Trey” White III, disputed any assertion that Kristi Alfaro was attempting to evade any type of debt.
