LOS ANGELES—Kenneth Klee's longtime law partner had spent weeks in the summer of 2010 typing up a voluminous report on the Tribune Co. bankruptcy, and his hands ached.

The 64-year-old Mr. Klee, who is described by peers as one of the most respected bankruptcy lawyers in the U.S., closed his eyes, peered through his "third eye" and waved his "energy hand" above his colleague's outstretched arms. Almost immediately, the hurt was gone.

"All I know is that I was in pain and he did his thing and I felt better," said Lee Bogdanoff, the lawyer treated by Mr. Klee.

By day, Mr. Klee inhabits the world of high-stakes bankruptcy cases, charging clients such as Jefferson County, Ala., about $1,000 an hour for legal advice. At night, Mr. Klee holds energy healings in a small room of his elegant, one-story home in the leafy Brentwood section of Los Angeles.

Mr. Klee said he can talk to spirits, mend broken bodies and wounded souls and, if necessary, perform exorcisms. The suggested donation for a two-hour session is $300.