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(Reuters) – A U.S. bankruptcy judge on Tuesday blocked a restructuring executive and an attorney from working for Infowars’ bankrupt parent company over a conflict of interest, potentially throwing the bankruptcy case and the company’s daily operations into disarray.
U.S. Bankruptcy Judge Christopher Lopez in Houston found that Marc Schwartz, chief restructuring officer of Infowars parent Free Speech Systems LLC, and attorney Kyung Lee failed to disclose that they sought work from Free Speech Systems before the conclusion of earlier Infowars bankruptcies.
The judge raised the conflicts issue because he presided over the earlier Infowars bankruptcies and was concerned about the apparent overlap of work. The judge said the two men showed a “lack of candor” regarding the overlap and other matters. The judge also said the problem was compounded by Schwartz’s tendency to defer to Alex Jones and his other companies instead of advocating on behalf of FSS alone.