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America's busiest bankruptcy judge has been accused of helping his lawyer girlfriend land huge multi-billion dollar cases.
Judge David R Jones allegedly signed off on at least $13 million dollars' worth of fees charged by his lover Elizabeth Freeman's firm.
Their relationship was exposed by disgruntled math teacher Michael Van Deelen, who was unhappy with how the judge handled his stake in a bankruptcy case.
He received an anonymous letter tipping him off about the affair, the Wall Street Journal reports, with the accusations about the romance later proven to be true.
The missive claimed that $700-an-hour lawyer Freeman through her firm Jackson Walker was often brought in for big bankruptcy cases as it was known the judge would be 'in their favor'.
America's busiest bankruptcy judge David R Jones has been accused of helping his lawyer girlfriend land huge multi-billion dollar cases
Freeman and her firm also worked with for Kirkland & Ellis, the world's largest law firm by revenue, which had in turn boosted Jones' career by bringing him some of its biggest corporate bankruptcy cases to his Houston courtroom.
The relationship saw Freeman landed with lucrative contracts for cases heard in Jones' court, according to the allegations.
Van Deelen, 74, decided to expose their relationship after Jones signed off on a bankruptcy plan proposed by Kirkland, which wiped out his $146,541 share in an oil company after it went bust.
The former math teacher submitted the anonymous letter to court, arguing it the conflict of interest was grounds to have Freeman dismissed from his bankruptcy case.
However, initially a partner from Kirkland successfully argued before a different judge that the letter was 'unsubstantiated'.
The evidence was deemed inadmissible and Jones went on to sign a letter sealing it from public view.
Van Deelen also sent a copy of the letter to Freeman's law firm. She allegedly told her employers the relationship had ended when questioned.
Neither Kirkland or Jackson Walker disclosed publicly what they had learned and both continued to work with Jones.
Lawyer Elizabeth Freeman's firm was reportedly able to earn $13 million in fees after her lover signed off on cases instructing them
In one instance, Jones shortlisted his girlfriend to handle a massive bankruptcy case for asset-management firm GWG.
Sources close to the matter claimed he told the company she would be a 'good choice'. In April 2023, he signed off an agreement for GWG to hire Freeman at $700 per hour.
But Van Deelen did not give up and was eventually able to uncover a property deed showing that the couple owned a home together.
Armed with the new information he resubmitted his claim against Jones in October. The filings immediately triggered an investigation by The Fifth Circuit Court of Appeals.
The court's chief judge determined there was probable cause that Jones had committed misconduct regarding his relationship with Freeman. He resigned days later.
He has since confirmed the relationship to the Wall Street Journal and has argued that he is legally immune from civil claims over his conduct on the bench.
Freeman said in court filings she had no legal duty to disclose the relationship.
Jackson Walker said it took appropriate steps after finding out about the affair and took Freeman at her word when she said it was over.
The relationship was exposed by former math teacher Michael Van Deelen, 74
Kirkland also maintains it was not obligated to disclose unverified allegations.
On June 6 Van Deelen secured a boost to his crusade when the two firms were brought before U.S. District Judge Alia Moses to explain why they did not examine the allegations more fully.
'Why did no one look into it?' Moses asked. 'Everyone is coming into court with not-so-clean hands.'
She will now decide if Van Deelen's claim can move forward.