Racketeering Lawsuit Against Former US Bankruptcy Judge Dismissed

Background of the Case

On Friday, a federal court dismissed a racketeering lawsuit involving a former US bankruptcy judge and two prominent law firms. The lawsuit stemmed from Judge Michael Van Deelen's admission of a secret romantic relationship with one of the attorneys from Jackson Walker.

No Evidence of Financial Hardship

Judge Alia Moses found that the plaintiff, Van Deelen, could not demonstrate any financial losses due to the alleged conflict of interest. This ruling raises serious doubts about the claims made.

Details of the Allegations

• Van Deelen, who held shares in energy company McDermott, filed the lawsuit challenging the integrity of Judge David Jones.
• Jones had overseen McDermott's restructuring after the firm filed for bankruptcy in 2020.
• Van Deelen accused Jones and his girlfriend, attorney Elizabeth Freeman, of orchestrating a scheme to approve excessive fees for their firms.

Judicial Integrity Called Into Question

While the lawsuit was dismissed, Judge Moses criticized Jones for not recusing himself, indicating a serious breach of ethical standards. She stated, "Whether through hubris, greed or profound dereliction of duty, Jones flouted statutory and ethical requirements." This bold statement highlights potential vulnerabilities in the bankruptcy court system.

Ongoing RAMifications

• The Department of Justice is still pursuing to reclaim $13 million in fees awarded to Jackson Walker.
• Jones has been ordered to undergo ethical training as a result of this incident.

Visit our website for more detailed coverage on this case and its legal implications in bankruptcy law.