Kheir v. Titan Team, The Money Source Inc., and Auction.com
S.D. Texas (Bankruptcy) · Nov 6, 2025
- Jurisdiction
- federal
- Court
- S.D. Texas (Bankruptcy)
- Record ID
- kheir-v-titan-team-the-money-source-inc-and-auction-com-2025-11-06
- Observed outcome
- The court ordered the attorney to reimburse the opposing party's attorney's fees, complete six hours of CLE on generative AI, provide a copy of the order to his client, and referred him to the Chief District Judge and the State Bar of Texas for disciplinary review.
- Known monetary consequence
- $1
Why this matter warrants attention
The court sanctioned attorney Derrick D. King for submitting AI-generated legal filings containing fabricated case law and false quotations. The sanctions include a requirement to pay the opposing party's attorney's fees, six hours of mandatory CLE on generative AI, a client notification requirement, and a referral to disciplinary authorities.
Fabricated: Case Law | Plaintiff cited Brasher v. Stewart; Court found no such case and the citation points to an unrelated Sabine Pilot Serv. decision; quoted text not present. || False Quotes: Case Law | Plaintiff quoted language attributed to Reinagel; Court found the quoted text does not appear in Reinagel and the actual holding differs. || False Quotes: Case Law | Plaintiff attributed a definitive statement about 'void assignments' to Morlock; Court found the quoted language not present and that Morlock addressed non-borrower standing. || False Quotes: Case Law | Plaintiff attributed liability language to Miller regarding trustee liability under Tex. Prop. Code §51.007(f); Court found Miller did not contain that language or interpret §51.007(f). || False Quotes: Case Law | Plaintiff cited Slaughter v. Qualls for a requirement tied to the Texas Property Code; Court noted the Texas Property Code was not enacted until 1984 and the quoted text is not in Slaughter. || Fabricated: Case Law | Plaintiff cited DTND Sierra Invs., LLC v. BNY Mellon; Court found no such decision at the cited reporter/location and the citation corresponded to unrelated authority; quoted language not found. || Fabricated: Case Law | Plaintiff cited Gossett v. Fed. Home Loan Mortg. Corp. with a quoted passage; Court found the quoted text not present in the actual Gossett decision and the citation did not support the quoted language.
This record documents a Lawyer filing issue in S.D. Texas (Bankruptcy), with the listed outcome: Costs Order; 6 hours CLE on generative AI; provide order to client; Bar referral..
Failure modes and consequences
- Fake Citations
- Fabricated Quotes
- Bar Referral
- Bankruptcy
- Trial
- Monetary
- AI attribution
- Admitted
- Recorded tool
- Unidentified generative AI
- Known monetary consequence
- $1
- Procedural posture
- Memorandum Opinion and Order following a show cause hearing regarding violations of S.D. Tex. General Order 2025-04 and Bankruptcy Rule 9011.
Damien Charlotin case archive
Publisher document archive. The recorded document is hosted in the upstream publisher archive.
Open underlying sourceA recorded source link is not a substitute for checking the underlying order, filing, opinion, or disciplinary record.
What this record does—and does not—establish
Client admitted using generative AI; attorney acknowledged the source.
Retained unchanged after audit: the existing summary is source-specific, non-placeholder, and supported by the recorded source link. Read the underlying source before relying on it for legal advice or a filing.
Latest evidence review: Primary Document Verified (high confidence).
Controls suggested by the public record
- Verify each cited authority, quotation, and proposition against the underlying source before filing.
- Confirm that every authority actually supports the proposition for which it is offered.
- Assign a responsible reviewer for AI-assisted research and drafting.
- Escalate and correct a suspect filing promptly, with a documented response.