Families of Sandy Hook victims who are suing Alex Jones for defamation accused the conspiracy theorist of siphoning significant amounts of money from Infowars’ parent company before he put the business into bankruptcy, the Wall Street Journal reported. Alinor Sterling, a lawyer representing nine Sandy Hook families, said Monday they are concerned Jones “has been systematically siphoning large amounts of money” out of Infowars’ parent company, Free Speech Systems LLC, since her clients sued him in 2018 for falsely claiming the 2012 school massacre was a hoax. FSS, which filed for chapter 11 last week, disclosed in a balance sheet submitted to the bankruptcy court that in 2021 and 2022 it paid more than $62 million in what it described as “member draws,” typically referring to money taken out by owners. FSS said in its bankruptcy petition that Mr. Jones is its sole owner. Lawyers representing Sandy Hook families in a separate fraudulent-transfer lawsuit also said Jones was the only member of FSS that they are aware of. Avi Moshenberg, a lawyer representing families in the fraudulent-transfer action, said Monday during a hearing in the U.S. Bankruptcy Court in Victoria, Texas, that they believe Jones and FSS have diverted assets to shell companies indirectly owned by Mr. Jones and his parents to make him and FSS “judgment-proof” in the defamation litigation.
