Ex-Bankruptcy Judge Jones Target of Criminal Probe, Report Says

Former Texas bankruptcy judge David R. Jones is facing a criminal inquiry by federal prosecutors over his once-secret relationship with a local attorney, according to The Wall Street Journal.

Federal prosecutors are investigating whether there was any criminal activity related to Jones’ relationship with former Jackson Walker LLP partner Elizabeth Freeman, The Wall Street Journal said, citing “people familiar with the matter.”

Jones, once one of the most prolific bankruptcy judges in the country, approved more than $1 million in fees to Jackson Walker related to work Freeman did on several large, Chapter 11 cases.

Prosecutors have asked federal judicial officials in Houston to hold on to any relevant records, the report said.

A federal criminal probe would be the latest and potentially most serious fallout from the scandal related to Jones and his longstanding romantic relationship with Freeman, who was also his former court clerk.

Jones and several of his attorneys didn’t respond to Bloomberg Law requests for comment Monday. A Justice Department spokesman said department policy is to not confirm or deny the existence of an investigation.

After it became public in October that Jones was in a relationship with Freeman, Chief Judge Priscilla Richman of the US Court of Appeals for the Fifth Circuit issued a formal misconduct complaint against him.

The complaint said there was “probable cause” to believe Jones engaged in misconduct. Jones soon after said he had become a distraction to the court and announced he would resign, shocking the corporate bankruptcy world.

But a legal storm has continued to brew despite the resignation, including several lawsuits. The Justice Department’s bankruptcy monitor—the US Trustee’s office—has waged an expansive campaign to claw back at least $13 million in fees in 33 bankruptcy cases in which Jackson Walker appeared in front of Jones when Freeman worked at the firm. The court probe was ended when Jones resigned.

A spokesman for Jackson Walker declined to comment. Freeman’s attorney declined to comment.