Feb. 2 (Bloomberg) -- U.S. Bankruptcy Judge James Peck in Manhattan, who is overseeing the liquidation of collapsed securities firm Lehman Brothers Holdings Inc., was charged with attempted assault for allegedly slapping his wife.

Peck, 63, was arrested Jan. 31 for third degree attempted assault and second degree harassment after a fight with his wife, Judith, at their home on Park Avenue, according to prosecutors.

Peck will continue working unless he is suspended by the chief bankruptcy judge or the top judge of his federal circuit, said Nancy Rapoport, a law professor at the University of Nevada- Las Vegas who specializes in ethics. If judicially disciplined, his cases will be reassigned.

“These are serious allegations, so I’m sure he and the chief judge have had a conversation already,” Rapoport said in an interview. She added that it’s likely a disciplinary board will convene on the matter.

Vito Genna, the clerk of the U.S. Bankruptcy Court in Manhattan, didn’t return a call seeking comment. A call to Peck’s chambers wasn’t returned. Chief Judge Stuart Bernstein’s chambers referred calls to Genna.

Peck’s wife told police he hit her with an open palm across the face, causing bruising, said Alicia Maxey Greene, a spokeswoman for Manhattan District Attorney Robert Morgenthau. Peck was released on his own recognizance. His next court appearance is scheduled for March 16, Greene said.

Initially Assigned

Peck had been initially assigned to supervise the bankruptcy court case of Bernard L. Madoff Investment Securities LLC, in which the New York firm is being unwound by the Securities Investor Protection Corp. That case was permanently assigned to U.S. Bankruptcy Judge Burton Lifland.

Madoff was charged by federal prosecutors for directing an alleged $50 billion Ponzi scheme. He hasn’t formally responded to the charges.

Peck, who has taught at Rutgers University, was assigned to the Lehman case after the bank filed the largest bankruptcy in history in September, saying at the time it had $613 billion in liabilities.

Before becoming a judge, Peck, a native New Yorker, worked for 16 years as a bankruptcy litigator at Schulte Roth & Zabel, a New York law firm that specializes in representing hedge funds. Before that, he was a partner at Duane Morris in Philadelphia.

“It’s tragic, but you can count on Judge Peck to make things right,” said Martin Bienenstock, a lawyer who has appeared before Peck on behalf of Lehman creditors. “He can still be a great man and jurist.”

The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Christopher Scinta in New York bankruptcy court at cscinta@bloomberg.net.

Last Updated: February 2, 2009 13:56 EST