Disgraced attorney Tom Girardi was convicted Tuesday of defrauding clients in a years-long Ponzi scheme through his now-defunct law firm, Girardi Keith.
After a 13-day trial, a jury convicted Girardi, 85, of four counts of wire fraud. Girardi faces a maximum sentence of 20 years in federal prison on each count.
Girardi, who was disbarred by the California Bar in July 2022, was known for his work representing plaintiffs against large corporations, including the Pacific Gas & Electric Co. case that was the subject of the 2000 film “Erin Brockovich.”
Tom Girardi, former Housewives husband and notorious lawyer indicted in $15 million embezzlement fraud case
Tom Girardi, the estranged husband of “Real Housewives of Beverly Hills” star Erika Jayne, has been convicted of four counts of wire fraud. (Getty Images)
He later gained fame as the husband of “The Real Housewives of Beverly Hills” star Erika Jayne.
When Mr. Girardi won a $333 million settlement for residents of the town of Hinckley, California, in the monumental PG&E lawsuit in 1996, it was the largest amount ever paid in a direct litigation lawsuit at the time.
Former 'Housewives' husband and disgraced lawyer Tom Girardi declares himself competent to stand trial
“Tom Girardi used his celebrity status to lure victims by falsely portraying himself as a 'champion of justice,'” U.S. Attorney Martin Estrada said in a statement after Girardi's guilty plea.
Tom Giralda, who has been disbarred, was once one of the most prominent lawyers in the country. (Myung J. Chun)
Erika Jayne filed for divorce from Tom Girardi in 2020 after 21 years of marriage. (YouTube/Bravo)
“In effect, he was a reverse Robin Hood, stealing from those in need to support his lavish Hollywood lifestyle. Today's sentence marks the end of the game. We now understand who this defendant was and the victims he coldly betrayed.”
“Tom Girardi used his celebrity status to lure victims by falsely portraying himself as a 'champion of justice.'”
According to the release, evidence presented throughout the trial showed that Girardi “misappropriated and embezzled millions of dollars from his law firm's client trust accounts.”
The scheme, which took place from October 2010 until late 2020, involved miscommunications by multiple individuals at Girardi's firm. Former lawyers claimed the settlements had been “paid” and “falsely claimed that Girardi Keith could not pay the settlements to his clients until certain requirements were met,” the lawsuit said.
The requirements included false tax liabilities, the satisfaction of other debts and permission from a judge, all of which were deemed “fake.”
Tom Girardi was indicted by a federal grand jury in February 2023 on fraud charges. (Irrfan Khan)
Tom Girardi was once a respected attorney who handled lawsuits against PG&E, LA County Metro and Lockheed. (Jim Steinfeldt)
“Mr. Girardi exploited his clients' misfortunes on a grand scale,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation in the Los Angeles field office. “His clients turned to him for help after suffering significant trauma and injury, but he betrayed their trust and stole from them to fund his own lavish lifestyle, and he will now face the consequences of his actions.”
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The U.S. Attorney's Office alleged that “tens of millions of dollars” that Girardi misappropriated from his law firm's operating account were used to pay illegal expenses, including more than $25 million to EJ Global, a company set up by his estranged wife to fund her entertainment career.
Jane Filed for divorce In November 2020, after 21 years of marriage, she separated from Girardi.
Additionally, Girardi Keith's funds were used for “private jet travel, jewelry, luxury cars, and luxury golf and social clubs.”
Girardi funded Erika's lavish lifestyle, as seen on “The Real Housewives of Beverly Hills.” (Bravo/NBCU)
Girardi Keith was forced into forced bankruptcy in 2020 due to mounting legal issues related to years of theft from clients, according to the U.S. Attorney's Office.
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“Mr. Girardi was hired to represent clients who trusted him, but in reality he lied to them and stole their money to support a lavish lifestyle,” said FBI Assistant Director in Charge Akil Davis of the FBI's Los Angeles Field Office. “Mr. Girardi falsely promoted himself in the media as a pillar of the legal community with a strong sense of justice, but his clients who were wronged by him for years have found true justice with today's sentence.”
Girardi was disbarred by the California Bar in 2022 and had been under conservatorship overseen by his brother, Robert, since June 2021. He suffers from “severe neurocognitive impairment” and was diagnosed with Alzheimer's disease in March 2021.
