Saturday, October 14, 2023

Prominent Texas bankruptcy judge under investigation because he was dating the lawyer that handled a "controversial bankruptcy case" before him


[The judge] and [lawyer] were both players in a controversial bankruptcy case involving a leading private prison healthcare provider, Corizon. Corizon split last year in a maneuver known as the Texas Two-Step, giving one company, YesCare, all the active prison contracts and saddling the other, Tehum Care Services, with most of Corizon's debt. Tehum was then filed into bankruptcy.

[The judge] oversaw settlement talks in that bankruptcy, helping Tehum and a committee of creditors reach a $37 million proposed settlement deal that would protect most of YesCare's assets, which court filings indicate total more than $173 million.

[The lawyer] represented YesCare in those talks.


[The judge confirmed] that he and [the lawyer] are in a romantic relationship and have shared a home for years. He said he didn't believe he had a duty to disclose because they aren't married and he didn't benefit economically from her legal work.