Former Houston Attorney Arrested Over $100K Vegas Casino Debt

Traffic Stop Reveals Outstanding Warrant

A routine traffic stop for a defective headlight in Galveston County, Texas, last month led to the arrest of former Houston attorney David Lee Pettus on an outstanding warrant from Nevada. The Bayou Vista Police Department confirmed the warrant was for fraud charges related to nearly $100,000 in unpaid gambling credit at a Las Vegas resort and casino.

After his arrest in Texas, Pettus entered into an agreement with Clark County prosecutors that will require him to make regular payments toward the debt. If he continues making the payments, he will not be required to come back to Las Vegas, and the warrant was recalled on January 14 with Pettus subsequently released. This arrangement allows him to avoid extradition while addressing his substantial gambling obligations.

Mounting Client Allegations

The former Houston-area attorney has been accused by many past clients of stealing their personal injury settlement checks. Multiple former clients told local reporters they were ghosted by Pettus or his firm and that settlement checks sent to his office were cashed without the clients ever seeing their share.

Pettus resigned from the State Bar of Texas in September 2024, with the Supreme Court of Texas accepting the resignation "in the best interest of the public and the profession." At the time, the State Bar of Texas had 24 active investigations into Pettus' professional conduct. Alleged victims say they have turned their paperwork over to Harris County prosecutors, but so far no criminal charges tied to the missing client funds have been announced.

Financial Collapse and Bankruptcy

Pettus filed for bankruptcy in May 2025, indicating in federal court records that he owed multiple people, including banks and victims who have been interviewed by KPRC 2 News and obtained default judgements in their cases, more than $8.5 million. In a motion to dismiss the case, attorneys for a bank wrote that Pettus filed for bankruptcy "in bad faith and for non-economic motives," calling him a "disgraced former attorney" who was attempting to avoid foreclosure on his Tiki Island home.

The court granted the motion to dismiss which barred Pettus from refiling for bankruptcy until mid-April. The State Bar's Client Security Fund and a few other remedies are available but limited, leaving many clients with uncertain prospects for recovery.

Broader Implications for Legal Profession

This case highlights the vulnerability of clients when attorneys face financial distress. Someone who carries a professional license, such as a doctor, lawyer, nurse, accountant, real estate agent, even a standard business license, exposes themselves to the real risk of losing their professional license(s) should they be convicted of such charges. Nevada is one of the only jurisdictions where this kind of gambling debt is collected through the filing of formal criminal charges.

The situation underscores the need for stronger oversight of client trust accounts and attorney financial conduct. As legal professionals face increasing scrutiny over ethical violations, cases like Pettus's serve as cautionary tales about the devastating impact personal financial problems can have on clients who entrust their settlements to attorneys. The ongoing civil litigation and potential criminal investigations will likely shape how the legal profession addresses similar situations in the future.