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A Texas bankruptcy judge teed up a trial intended to end a long-running dispute between McKinsey & Co. and AlixPartners founder Jay Alix, saying the outcome of the trial will be “the ultimate career ender” for one of the two sides, the Wall Street Journal reported. The trial will center on whether McKinsey was qualified to work as an adviser on Westmoreland Coal Co.’s chapter 11 case, which was filed last year and largely concluded after just four months. In calling for a full evidentiary trial in February, Judge David Jones of the U.S. Bankruptcy Court in Houston, who is overseeing the Westmoreland case, ensured it will remain active well into next year. Alix says that McKinsey has repeatedly violated bankruptcy law by failing to disclose conflicts of interest in bankruptcy cases and has profited from some of its undisclosed connections to parties with a stake in the outcome of those cases. McKinsey denies those allegations and has vigorously defended itself in court, saying that Alix is using the courts to try to drive McKinsey out of the often-lucrative business of aiding troubled companies. Judge Jones reiterated the blunt warnings he has given to both McKinsey and Mr. Alix in the past, saying that he can be “incredibly harsh” and that he will decide “who survives and who does not.” The judge also promised his decision at the conclusion of the trial “will be the most thorough thing I’ve written since I’ve been on the bench.”

In a case that makes it clear that Texas judges are permitted to testify in attorney discipline cases, the Texas Supreme Court decided on Friday that it was wrong for an appellate court to overturn an attorney’s disbarment because of a judge’s testimony, Texas Lawyer reported. In Commission for Lawyer Discipline v. Cantu, McAllen, Texas-based attorney Mark Cantu was disbarred, but an appellate court reversed because in the trial a federal bankruptcy judge had testified about overseeing Cantu’s personal bankruptcy proceedings. The high court overruled that decision, however, and sent it back to McAllen’s Thirteenth Court of Appeals. According to the per curiam opinion, Cantu’s conduct in his bankruptcy brought the disciplinary action, which was reported by Judge Marvin Isgur, who had denied Cantu a debt discharge because of the attorney’s misconduct. In a 72-page opinion that explained his ruling, the judge also decided that his ethical obligations required him to report Cantu to the State Bar of Texas. The Commission for Lawyer Discipline in the resulting disciplinary case maintained that Cantu broke a disciplinary rule that prohibits attorneys from taking positions that increase the costs or burdens of the case, or delay the resolution of the case. It alleged Cantu violated other rules that prohibit lawyers from knowingly making false statements to courts, or knowingly entering false evidence. Among other things, the commission also claimed Cantu violated a rule that prohibits attorneys from knowingly disobeying a standing rule or ruling by a court.

A Pasadena, Calif., man who falsely claimed to be a licensed attorney was sentenced today to 50 months in federal prison for his conviction on charges related to his representation of “clients” in federal and state courts, according to a DOJ press release. Kenneth Paul Ferreyro also sought well over $100,000 in refunds on federal tax returns that falsely claimed substantial payroll taxes had been withheld and remitted to the IRS. U.S. District Judge John F. Walter imposed the sentence, calling Ferreyro’s criminal conduct “absolutely despicable.” In addition to the prison term, Judge Walter ordered Ferreyro to pay $190,887 in restitution to the IRS. Following a four-day trial in April, a federal jury convicted Ferreyro of four counts of wire fraud and four counts of making false claims on his tax returns. Judge Walter remanded Ferreyro into custody after the guilty verdicts were read. The evidence presented at trial showed that, from at least 2010 until 2017, Ferreyro told people, most of whom were affiliated with his father’s church, that he could represent them in bankruptcy court and other courts, and that he could perform work related to real estate refinancing and tax liens. While Ferreyro graduated from law school, he never received a license to practice law.