nate raymond

Ethics probe into Texas bankruptcy judge ends following resignation

U.S. Bankruptcy Judge David Jones, who announced he is stepping down from handling cases, is seen during a virtual interview with Reuters in December 2020

U.S. Bankruptcy Judge David Jones, who oversees more major Chapter 11 cases than any other U.S. judge, is seen in a screenshot from video shot during a virtual interview with Reuters done from Houston, Texas, U.S. December 11, 2020. REUTERS/Staff/File Photo Acquire Licensing Rights

  • 5th Circuit probe into former Bankruptcy Judge David Jones ends
  • DOJ’s bankruptcy trustee seeking return of fees from Jackson Walker

Nov 16 (Reuters) – A federal judicial ethics probe into former U.S. Bankruptcy Judge David Jones’ failure to disclose his romantic relationship with a lawyer whose firm regularly appeared before him has come to an end following the Houston judge’s resignation.

The chief judge of the 5th U.S. Circuit Court of Appeals, Priscilla Richman, in an order on Wednesday said further action was “unnecessary” after Jones last month submitted his resignation as a Southern District of Texas bankruptcy judge.

Jones announced plans to resign on Oct. 15 after acknowledging to the Wall Street Journal that he had been in a years-long romantic relationship with bankruptcy attorney Elizabeth Freeman and shared a home with her.

Freeman until recently worked at Jackson Walker, a local law firm that worked on many corporate bankruptcy cases in Jones’ Houston courthouse.

Read the rest

U.S. Supreme Court says bankruptcy can’t nix debts for others’ frauds

  • U.S. Supreme Court says debtors unaware of fraud cannot wipe out debts
  • Case concerned sale of San Francisco home with undisclosed defects

Feb 22 (Reuters) – The U.S. Supreme Court on Wednesday ruled that individuals cannot use the bankruptcy process to wipe out debts incurred through fraud even in instances when they were not the ones who personally deceived their creditors.

The high court unanimously rejected Kate Bartenwerfer’s bid to use bankruptcy to eliminate debts stemming from a home sale in San Francisco on the grounds that she was unaware of fraudulent omissions her husband made in selling their house.

She had sought to discharge a debt owed to the buyer, Kieran Buckley, who had sued Kate and David Bartenwerfer for selling him their house while withholding information about major defects, like a leaky roof and defective windows.

But conservative Justice Amy Coney Barrett said the bankruptcy code allows someone like Kate Bartenwerfer, who was unaware of the deceit, to still be held liable as the law “turns on how the money was obtained, not who committed fraud to obtain it.”

Latest Updates

View 2 more stories

She noted the bankruptcy code’s bar on debtors discharging debts for money “obtained

Read the rest