Graham Weston’s wife accuses San Antonio accounting firm of fraud in lawsuit arising from divorce

Cecilia Nysing

A San Antonio accounting firm has been caught up in the widening litigation arising from the contentious divorce of real estate developer Graham Weston and his wife Elizabeth.

She has accused Irwine Pruitt Associates and principal James Irwine of assisting her estranged husband in creating more than 150 business entities and trusts that were used to defraud her of property ownership rights in the various assets and their income.

She estimates more than $1 billion in assets and income are involved.

Elizabeth Weston last week sued Irwine Pruitt and Irwine for fraud and breach of fiduciary duty in state District Court in San Antonio. She seeks more than $1 million in damages and unspecified punitive damages.

“Because Graham claims that all property acquired during the marriage is his separate property, that now reveals a long-running scheme to fraudulently conceal and remove property from Elizabeth’s rightful possession and joint community control,” she alleges.

The business entities and trusts used to hide the property serve as Graham Weston’s alter egos, she adds in her complaint. He is not a defendant in the lawsuit.

Elizabeth Weston has sued San Antonio accounting firm Irwine Pruitt Associates and principal James Irwine.

File photo

Elizabeth Weston filed to end their marriage Oct. 26 in Comal County. Graham Weston had filed his own divorce petition but dropped the action just 25 hours later. They married in 1994. Both live in New Braunfels.

She says she suffered emotional, psychological, physical, and sexual abuse during her 26-year marriage to the Rackspace Technology Inc. co-founder. He has denied those allegations and accused her of hiring a private investigator to track him for a year and a half.

A key issue in the divorce is whether the wealth Graham Weston amassed over his career is his own or community property that belongs to them both. He intends to argue he has placed the vast majority of assets accumulated during the marriage in a trust that he controls.

Graham Weston made an appearance on Forbes magazine’s annual billionaires list in 2013 before quickly dropping off.

The couple does not have a prenuptial agreement, according to one of her lawyers.

Last month, Graham Weston sued San Antonio attorney Jason M. Davis. and his law firm for allegedly accepting $2.9 million in legal fees to represent him in various matters — only to “secretly” agree to serve as his wife’s counsel in the divorce. Davis has disputed the allegations, but a judge disqualified him from representing her in the divorce, citing a conflict of interest.

Elizabeth Weston now alleges their long-time accountant had a conflict of interest.

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