Kaitlin Armstrong sued again by Wilson family, alleging ‘fraudulent’ transfer of funds

AUSTIN (KXAN) — The family of Anna Moriah “Mo” Wilson filed another lawsuit against Kaitlin Armstrong, alleging Armstrong’s family members and her ex-boyfriend engaged in “fraudulent transfers” to avoid paying out the Wilson family.

Armstrong was found guilty and convicted of first-degree murder in November 2023 and sentenced to 90 years in prison for the murder of Wilson. She is currently serving that sentence in Dr. Lane Murray Unit, a women’s prison in Gatesville, Texas.

A judge ordered Armstrong pay the Wilson family $15 million as part of a wrongful death suit Karen and Eric Wilson filed in May. That order, handed down by Judge Daniella DeSata Lyttle in June, allocated that monetary amount to the Wilsons to cover the “mental anguish, including emotional pain, torment and suffering from the death of [their] daughter,” according to court documents.

In the latest court suit filed July 11, the Wilsons allege several close to Armstrong — including her mother, Sharon Armstrong; her sister, Christine Armstrong; and her ex-boyfriend, Colin Strickland — concealed those transfers from the Wilsons in order to avoid debts “which arose within a reasonable time after the transfer was made.”

KXAN attempted to reach out to all defendants named in the suit and didn’t hear back from any of them at the time of publication.

The Wilsons’ suit points to three property sales in particular: two previously owned by Kaitlin in Austin, and a third in Lockhart she formerly purchased with Strickland. The lawsuit claims Kaitlin transferred ownership of those properties while in custody, with all three now sold to new owners.

“Furthermore, a nationwide asset search indicated that a Chase Bank account owned by Defendant Kaitlin Armstrong, which contained $78,000.00, was emptied on May 9, 2024, leaving only $10.00 in the account,” court documents allege as well. “Upon information and belief, the funds were transferred by Defendant Christine Armstrong in her capacity as attorney in fact for Kaitlin Armstrong. The transfer of funds out of Defendant Kaitlin Armstrong’s Chase Bank account was done only three days after Plaintiffs filed their wrongful death suit.”

As part of this suit, the Wilsons are seeking a temporary restraining order, temporary injunction and permanent injunction against all defendants named as this latest lawsuit remains pending.

“It is also probable and imminent that absent the requested injunctive relief, Defendants will further harm Plaintiffs by spending, transferring, wasting, hiding, disguising, or otherwise alienating assets or funds belonging to Defendant Kaitlin Armstrong,” the filing alleges. “Their past acts establish an imminent threat of future alienation or loss of the assets or funds.”

Prior to this latest filing on the Wilsons’ behalf, court records show Kaitlin filed an evidentiary hearing request , seeking a motion for a new trial.

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