131 Federal Judges Broke the Law by Hearing Cases Where They Had a Financial Interest
The judges failed to recuse themselves from 685 lawsuits from 2010 to 2018 involving firms in which they or their family held shares, a Wall Street Journal investigation found
By James V. Grimaldi, Coulter Jones and Joe Palazzolo
Sept. 28, 2021 9:07 am ET
More than 130 federal judges have violated U.S. law and judicial ethics by overseeing court cases involving companies in which they or their family owned stock.
A Wall Street Journal investigation found that judges have improperly failed to disqualify themselves from 685 court cases around the nation since 2010. The jurists were appointed by nearly every president from Lyndon Johnson to Donald Trump.
About two-thirds of federal district judges disclosed holdings of individual stocks, and nearly one of every five who did heard at least one case involving those stocks.
Alerted to the violations by the Journal, 56 of the judges have directed court clerks to notify parties in 329 lawsuits that they should have recused themselves. That means new judges might be assigned, potentially upending rulings.
When judges participated in such cases, about two-thirds of their rulings on motions that were contested came down in favor of their or their family’s financial interests.
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Read the full article at the link.
This is seriously bad stuff that should never have happened.
Admittedly, Federal conflict of interest rules can be both complicated and annoying. But, complicated legal issues are these judges’ “specialty.” “Ignorance is no excuse” is a common judicial cliche!
Even at EOIR, judges got decent training in these types of ethical requirements, including examples that covered the types of conflicts uncovered by the WSJ; they were fairly rare at EOIR given the subject matter at issue in most cases and the relatively modest financial circumstances of most Immigration Judges, many of whom were career civil servants.
Other types of potential conflicts or “appearance” issues did arise more frequently at EOIR. We were advised “When in doubt, sit it out!”
Obviously, the Administrative Office for U.S. Courts (“AOUSC”) isn’t doing its job here! It appears that using the same public information available to the WSJ reporters, the AOUSC could have not only discovered these conflicts much earlier (perhaps before decisions were rendered) but also set up an automated system for discovering potential conflicts in advance. Jones Day had such a system when I was there three decades ago!
Chief Justice John Roberts must insist that all Article III Judges take their ethical obligations more seriously and that they become thoroughly familiar with the requirements applicable to them. And, he should demand that the AOUSC provide the necessary training and monitor compliance with an automated conflicts identification system!
PWS
09-28-21
