HARTFORD, Conn. (AP) 鈥� A bank recently shut down the accounts of media company, citing unauthorized transactions 鈥� a move that caused panic at the business when its balances suddenly dropped from more than $2 million to zero, according to a lawyer for the company.
The action last week by Axos Bank also exposed worry and doubt at the company, Free Speech Systems, about being able to find another bank to handle its money.
Jones, a conservative provocateur whose Infowars program promotes fake theories about global conspiracies, UFOs and mind control, is as he and his company to relatives of victims of the in sa国际传媒icut.
The debt is the result of the families winning lawsuits against Jones for his calling the massacre that killed 26 people a hoax and his supporters
A lawyer for Free Speech Systems, Ray Battaglia, told a federal bankruptcy judge in Houston on Tuesday that Axos Bank had shut down the company's accounts on Aug. 21 鈥渨ithout notice or warning.鈥�
Battaglia said he and a court-appointed overseer of Free Speech Systems鈥� finances were both out of the country when they received 鈥渇rantic鈥� messages about the company鈥檚 bank balances dropping to zero.
Bank officials, he said, didn't provide much information.
According to Battaglia, Axos claimed it had contacted Free Speech Systems in July about a transaction and the company did not respond, which Battaglia disputed. The bank also indicated there were unauthorized transactions, but didn't go into detail, he said. He said the bank informed Jones' company that it would be sending a cashier鈥檚 check for the total balance.
鈥淪o we鈥檙e perplexed,鈥� Battaglia told the bankruptcy judge. 鈥淲e have no answers for the court. They (the bank) have not provided us with any.鈥�
Battaglia said the media company will have to seek another bank or take Axos to court 鈥渂ecause we just don鈥檛 know who will bank us.鈥� At the request of Jones鈥� lawyers, Axos did agree to reopen the company鈥檚 accounts for 30 days but it appears it will not extend the relationship beyond that, he said.
Spokespeople for Axos did not return email messages seeking comment Wednesday. An email sent to Infowars also went unanswered, as have previous messages.
Jones and Free Speech Systems make the bulk of their money from selling nutritional supplements, survival gear, books, clothing and other merchandise, which Jones hawks on his daily web and radio show.
According to the company鈥檚 most recent financial statement filed in bankruptcy court, it had more than $2.5 million in its Axos accounts at the end of August after bringing in more than $3 million in revenue during the month. The company paid out over $2 million in expenses and other costs, leaving a net cash flow of $1 million.
The bankruptcy judge, Christopher Lopez, will be deciding how much money Jones and Free Speech Systems will have to pay creditors, including the Sandy Hook families. Jones is appealing the court awards, citing free speech rights and missteps by judges.
In 2018, social media companies including Facebook, YouTube and Apple banned Jones from their platforms. It is not clear if Jones' views have anything to do with Axos Bank's actions.
Dave Collins, The Associated Press
