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Criminal Investigation Unleashed In Texas Bankruptcy Court
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October 31, 2024
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8:23Now PlayingThe FBI is conducting an investigation into one of the most popular corporate bankruptcy judges in America after he resigned in disgrace following a massive scandal that may have corrupted countless rulings. Mike Papantonio & Farron Cousins discuss more.
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*This transcript was generated by a third-party transcription software company, so please excuse any typos.
The FBI is conducting an investigation into one of the most popular corporate bankruptcy judges in America after he resigned in disgrace following a massive sex scandal that may have corrupted countless rulings. Now, we did a story on this. The reason this story is so important, and the reason, I think the story we did last time got like 250,000 views because people are saying, this is really happening in America. Really? So this man Jones had a sexual relationship with a woman named Elizabeth Freeman. As a matter of fact, they owned what I call a love shack together. They were paying for this love shack, a house together, and he never discloses that to anybody who appears in front of him. The people who appear in front of him are corporate America who are trying to get away with making sure creditors don't get paid, that the CEOs don't lose any money, that they keep most of their money, and the creditors just go to hell. Right?
Yeah. And Elizabeth Freeman, what her job was, essentially was, hey, I'm going to go with my firm and we're going to recruit these businesses all over the country and tell them come and file your bankruptcy case down here in Houston, in front of Jones. And then after she did that with the law firm she was working with for several years, she then started her own firm and she partners up with big time law firms.
Kirkland Ellis.
Like Kirkland Ellis
Biggest in the country, biggest in the world.
Yeah. And says, Kirkland, you got to come down here to this, not just this jurisdiction, this guy, he became the busiest bankruptcy judge in the world because of all the cases she was bringing in. And of course, never disclosed that, yeah, okay, she's getting a kickback from the firms for bringing them here. He, of course, is just ruling for corporations with every slap of that gavel. And it's this massive corruption taking place in Texas, but extending throughout the entire country.
Wall Street Journal reports that the lawyers at Kirkland Ellis, the big huge firm, would bring Freeman in. They know about the relationship.
Yeah.
I mean, they deny that they know, but there's people that said, well, hell yeah.
Well, there's text messages and all kinds of fun stuff too.
There's a lot of stuff that says, yes, we knew that he was having sex with Freeman and they owned the love shack together, and all he had to do is rubber stamp everything Kirkland Ellis asked him to do. But what's interesting to me, if this was any other Department of Justice, I'd be really encouraged because the Department of Justice really is doing a massive investigation and it goes on. He had a sidekick, Marvin Isgur. What was Marvin Isgur's role? He had a panel. It was him and Marvin Isgur, who's another bankruptcy judge, who was supposed to, they were supposed to handle all the complex cases that would come in front of him, which are the big corporate cases. And so this fellow named Van Deelen, he goes in front of him and he sees what's going on, and he says, you need to disclose this relationship that you're having, you're having sex with this woman who is up here arguing on behalf of the corporation to my detriment. Right. And all this starts to unfold. And tell me about the ramifications as you see it.
Well, right now, as you mentioned, you do have the FBI that is conducting an investigation here. But so far, Jones, he resigned, maybe a year ago, but when he resigned, this was a small thing that only the people like the Van Deelen exposing this. It was just the people in the court that kind of knew what had happened. He would still be on this bench today had he not been called out. But then ProPublica got a hold of this story.
Great job they did on it too.
They're the best in the country, and they exposed this.
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