Tipifarnib and Bortezomib in Treating Patients With Acute Leukemia or Chronic Myelogenous Leukemia in Blast Phase

Inclusion Criteria: * Meets 1 of the following disease-specific criteria: * Relapsed disease after =\< 2 prior chemotherapy regimens (consolidation therapy excluded) * Primary-induction failure * Previously untreated and deemed unfit for or refusing cytotoxic chemotherapy * No hyperleukocytosis (leukemic blasts \>= 30,000/mm\^3) * No acute promyelocytic leukemia (M3) * No active CNS leukemia * SGOT and SGPT =\< 2 times upper limit of normal (ULN) * Bilirubin normal * Creatinine =\< 1.5 times ULN * No uncontrolled hypertension, congestive heart failure, angina pectoris, or ventricular dysrhythmias * Not pregnant or nursing * Negative pregnancy test * No uncontrolled disseminated intravascular coagulation * Fertile patients must use effective contraception * Hormonal contraception must have been initiated ≥ 1 month prior to study entry * No active graft-vs-host disease * No active uncontrolled infection * No intrinsic impaired organ function * No known allergy to imidazole drugs * No neuropathy \>= grade 1 * No known hypersensitivity to bortezomib, tipifarnib, boron, or mannitol * No physical or psychiatric conditions that would preclude study participation, including poorly controlled psychosis * At least 48 hours since prior hydroxyurea * No prior tipifarnib, bortezomib, or investigational proteasomal inhibitors * No concurrent radiotherapy, chemotherapy, or immunotherapy * No concurrent enzyme-inducing antiepileptic medications (e.g., phenytoin, phenobarbital, or carbamazepine) * ECOG performance status 0-2 * LVEF \>= 40% * Pathologically confirmed diagnosis of 1 of the following: * Acute myeloid leukemia * Acute lymphoblastic leukemia * Chronic myelogenous leukemia in blast phase