Houston real estate investor Ali Choudhri was taken into custody by U.S. marshals Monday after repeatedly failing to comply with court orders in Jetall Companies’ bankruptcy case.
U.S. Bankruptcy Judge Jeffrey Norman ordered Choudhri’s arrest following a three-hour emergency hearing, describing it as a last-resort move to compel the Jetall founder and CEO to submit complete and accurate bankruptcy schedules and financial statements, Bisnow reported.
“If I don’t put him in the custody of the U.S. marshal, we’re going to continue to play this game over and over,” Norman said in court.
The judge issued an arrest warrant last week after Choudhri missed a court-ordered deadline. Though he filed partial documents and a motion for relief on Thursday, Norman rejected the motion, saying the filings were “incomplete and inaccurate.”
Choudhri claimed he couldn’t finalize the documents without access to Jetall’s former offices at 1001 and 2425 West Loop South, properties that have been subject to foreclosure and are now out of his control.
“I feel like I’ve been put into an impossibility trap by this court,” Choudhri said on the stand.
But Norman pointed out that Choudhri didn’t file an emergency access request until the day after the arrest warrant was issued, calling the delay part of a broader “pattern” of stalling.
Two U.S. marshals were present in court and took Choudhri into custody following the hearing. He will remain in custody until he submits complete financial disclosures.
This isn’t the landlord’s only legal trouble. Earlier this month, a federal judge threatened him with jail in an unrelated Department of Justice case for failing to comply with subpoenas. Chourdhri’s attorneys cited technical difficulties in producing documents.
Once a major Galleria-area landlord, Choudhri lost control of the office building that included his personal office, at 2425 West Loop South. The Bank of Kuwait loaned $60.2 million on the building and attempted to foreclose a couple of years ago. The bank is among the creditors in his bankruptcy case.
—Rachel Stone
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