Millions embezzled from clients, Tom Girardi, ex-'Real Housewives' husband, convicted of wire fraud.
Estranged wife Erika Jayne and disbarred lawyer Tom Girardi inspired the 'Erin Brokovich' film and gained fame on 'Real Housewives of Beverly Hills.'
On Tuesday, Tom Girardi, a disgraced lawyer, was found guilty of defrauding clients in a multi-year Ponzi scheme through his former law firm, Girardi Keese.
After a 13-day trial, Girardi, 85, was convicted of four counts of wire fraud by a jury. He now faces a maximum sentence of 20 years in federal prison for each count.
In July 2022, Girardi, who was disbarred from the State Bar of California, gained notoriety for his work representing plaintiffs against major corporations, particularly in the Pacific Gas & Electric case that inspired the 2000 film "Erin Brokovich."
Erika Jayne, a "Real Housewives of Beverly Hills" star, brought fame to her husband later in life.
The largest ever paid direct-action lawsuit was won by Girardi in 1996, when he received a $333 million settlement for the residents of Hinkley, California, in the monumental PG&E case.
According to United States Attorney Martin Estrada, Tom Girardi gained celebrity status and attracted victims by presenting himself as a "Champion of Justice" despite being guilty.
"In reality, he was a thief who stole from the poor to fund his luxurious lifestyle in Hollywood. Today's verdict reveals that he was a fraud and the victims he betrayed."
"Tom Girardi built celebrity status and lured in victims by falsely portraying himself as a ‘Champion of Justice.'" — United States Attorney Martin Estrada
According to the release, evidence presented throughout the trial demonstrated that Girardi misappropriated and embezzled millions of dollars from client trust accounts at his law firm.
The scheme, which spanned from October 2010 to late 2020, resulted in miscommunications from various individuals in Girardi's firm. The former attorney would falsely claim that settlement proceeds had been paid, and assert that Girardi Keese could not pay the settlement proceeds to clients until certain supposed conditions had been met.
The judge deemed all of the faux tax obligations, satisfying other debts or authorizations as "bogus."
"Tyler Hatcher, Special Agent in Charge of the IRS Criminal Investigation, Los Angeles Field Office, stated that Mr. Girardi took advantage of his clients' misfortunes on a large scale. Despite his clients seeking his help after experiencing significant trauma and injury, Mr. Girardi betrayed their trust by stealing from them to fund his own extravagant lifestyle. As a result, he will now face the consequences of his actions."
According to the U.S. Attorney's office, the "tens of millions of dollars" that Girardi diverted from the law firm's operating account were used to cover unlawful expenses, including more than $25 million towards EJ Global, a company founded by his estranged wife to finance her entertainment career.
In November 2020, Jayne ended her 21-year marriage to Girardi by filing for divorce.
The Girardi Keese funds were used for "private jet travel, jewelry, luxury cars, and exclusive golf and social clubs."
Involuntary bankruptcy was declared on Girardi Keese in 2020 due to ongoing legal issues related to client theft, as stated by the U.S. Attorney's Office.
"According to Akil Davis, the Assistant Director in Charge of the FBI's Los Angeles Field Office, Mr. Girardi was hired to represent clients who trusted him, but instead, he deceived them and took their money to fund his extravagant lifestyle. Despite promoting himself as a champion of justice in the legal community, Girardi has been found guilty for his wrongdoing and the clients he betrayed for years have finally received justice in today's verdict."
In 2022, Girardi was disbarred from the State bar of California and has been under his brother Robert's conservatorship since June 2021. He has been diagnosed with a "major neurocognitive disorder" and was diagnosed with Alzheimer's in March 2021.
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