A former Houston-area personal injury attorney who faced multiple accusations of stealing clients’ settlement checks was recently arrested in Galveston County. David Lee Pettus was apprehended on a warrant issued for unpaid gambling debts tied to a Las Vegas casino.
Authorities confirmed Pettus was taken into custody on January 12 after a traffic stop for a defective headlamp revealed an active extraditable warrant from Clark County, Nevada. He was held at Galveston County Jail and released two days later following an agreement with Nevada prosecutors to make regular payments on nearly $100,000 owed for gambling credit.
Background of Allegations
Pettus attracted scrutiny after several former clients publicly alleged he stole tens of thousands of dollars from personal injury settlements. These settlements stemmed from car crash claims, where clients expected compensation but never received the funds. At least five victims stepped forward to share their experiences with local media.
Court records reveal Pettus has been liable in multiple civil suits filed by former clients attempting to recover stolen money. He often failed to respond or appear for court proceedings related to these cases. Meanwhile, the State Bar of Texas had at least 24 ongoing professional misconduct investigations against him.
Legal and Professional Consequences
In September, the Supreme Court of Texas formally accepted Pettus’ resignation, deeming it in the interest of both the public and the legal profession. This resignation effectively barred him from practicing law within the state. The State Bar’s decision followed mounting evidence of unethical behavior and client mistreatment.
Despite Pettus’ public statements defending his actions, describing his clients’ complaints as misunderstandings, the financial records tell a contrasting story. Pettus filed for bankruptcy the following May, disclosing debts surpassing $8.5 million owed to a variety of creditors including former clients and financial institutions.
Bankruptcy and Accusations of Bad Faith
Legal representatives for a bank involved in Pettus’ bankruptcy case alleged he filed in bad faith, aiming to prevent foreclosure on his residence at Tiki Island. A court agreed, dismissing his bankruptcy petition and barring him from refiling until mid-April.
Victims of Pettus’ alleged thefts have submitted evidence to Harris County prosecutors. However, no criminal charges concerning mishandling of client funds have been filed against Pettus to date.
Current Standing and Obligations
Under the payment agreement with Clark County prosecutors, Pettus must continue making installment payments toward the outstanding gambling debt to avoid extradition back to Nevada. The Galveston County Jail officially recalled his warrant shortly after his arrest.
This case highlights significant challenges within the legal profession concerning attorney accountability and client protection. It also underscores ongoing efforts by legal authorities to address misconduct and recover losses for victims.
Summary of Key Points
- David Lee Pettus was arrested on an out-of-state warrant related to unpaid gambling debts in Las Vegas.
- Multiple former clients accuse Pettus of stealing personal injury settlement funds.
- Pettus resigned his Texas law license amid active misconduct investigations.
- He owes more than $8.5 million, declared in bankruptcy filings dismissed for bad faith.
- Victims have reported losses to prosecutors, but no criminal charges have resulted yet.
- Pettus agreed to repay gaming debts to avoid extradition to Nevada.
The unfolding developments may lead to further legal scrutiny as victims and authorities continue pursuing restitution and justice.
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