Liz Freeman and David R. Jones
HOUSTON — Several individuals and exchange trusts have filed a lawsuit against Jackson Walker to address “unprecedented and systemic corruption in the Bankruptcy Court in the Southern District of Texas.”
Gary Peterson, on behalf of himself and those similarly situated, filed the suit June 12 in the Southern District, also naming David Jones, Elizabeth Freeman, The Law Office of Liz Freeman and Porter Hedges as defendants.
“For years, David R. Jones, the (now resigned) Chief Bankruptcy Judge, plotted with his live-in girlfriend and former clerk Elizabeth Freeman and her firms, Jackson Walker and Freeman, to work together to prey upon distressed entities for their own financial gain,” the suit states.
“Never once across more than thirty mega-bankruptcies did they ever disclose the relationship between Jones and Freeman even though the law demanded it.”
The suit alleges the defendants carried out their scheme by ensuring cases were assigned to Jones, which allowed him to award Jackson Walker, Freeman, and indirectly himself millions of dollars in attorneys’ fees while keeping interested parties in those bankruptcies unaware of the disqualifying conflict.
Even in cases where Jones was not presiding, the group arranged for him to serve as a judicial mediator, ensuring liquidation of distressed entities for their pecuniary gain, the suit claims.
“Jones, Freeman, Jackson Walker, and others deliberately kept this long-term and ongoing relationship secret from those interested in the various bankruptcy proceedings, while using it to bolster prestige and collect millions of dollars in fees at the expense of those affected by the bankruptcies,” the suit states.
“In this case, the Enterprise targeted GWG Holdings – a multi-billion-dollar business – to provide Freeman with a ‘golden parachute’ for her quiet, planned separation from Jackson Walker; a separation designed to avoid strict disclosure requirements that the Defendants by then could no longer delude themselves into avoiding if Freeman remained a partner at the firm.”
The 138-page complaint details numerous allegations, including:
How a “rogue” SEC investigation resulted in the need for GWG to pursue Chapter 11 bankruptcy, “unwittingly making it a victim of the Enterprise” when it was recommended the company hire Jackson Walker; and
How Jackson Walker moved to appoint Jones as mediator while Freeman is still at the firm without anyone disclosing the Jones-Freeman relationship.
“In equity and fairness, Defendants Jackson Walker… and Freeman must return the fees they wrongfully collected through fraud and concealing the Jones-Freeman relationship,” the suit states. “Jones should likewise be required to return any indirect pecuniary benefits he received through Freeman.”
The plaintiffs are alleging a conspiracy to engage in a pattern of racketeering activity in violation of Title 18.
The Bandas Law Firm along with Jordan & Ortiz are representing the plaintiffs.
Case No. 4:25-cv-02761
