Disgraced lawyer Tom Girardi was convicted Tuesday of defrauding clients in a years-long Ponzi scheme through his now defunct Girardi Keese law firm.
Following a 13-day trial, Girardi, 85, was found guilty of four counts of wire fraud by a jury. Girardi faces a statutory maximum sentence of 20 years in federal prison for each count.
Girardi, who was disbarred from the State Bar of California in July 2022, was known for his work representing plaintiffs against major corporations, specifically in the Pacific Gas & Electric case that inspired the 2000 film “Erin Brokovich.”
He found fame later on in life as the husband of “Real Housewives of Beverly Hills” star, Erika Jayne.
When Girardi won the $333 million settlement for the residents of the town of Hinkley, California, in the monumental 1996 PG&E case, it was, at the time, the largest ever paid direct-action lawsuit.
TOM GIRARDI, EX ‘HOUSEWIVES’ HUSBAND AND DISGRACED LAWYER, DECLARED COMPETENT TO STAND TRIAL
“Tom Girardi built celebrity status and lured in victims by falsely portraying himself as a ‘Champion of Justice,’” United States Attorney Martin Estrada said in a release following Girardi’s guilty verdict.
“In reality, he was a Robin-Hood-in-reverse, stealing from the needy to support a lavish, Hollywood lifestyle. Today’s verdict shows that the game is up — we can all now see this defendant for what he was and the victims he callously betrayed.”
Evidence presented throughout the trial showed how Girardi “misappropriated and embezzled millions of dollars from client trust accounts at his law firm,” according to the release.
The scheme, which ran from October 2010 to late 2020, involved miscommunications from multiple people in Girardi’s firm. The former attorney would claim that settlement proceeds “had been paid, and falsely claimed that Girardi Keese could not pay the settlement proceeds to clients until certain purported requirements had been met.”
Some requirements included faux tax obligations, satisfying other debts or authorizations from judges — all of which were deemed “bogus.”
“Mr. Girardi exploited his clients’ misfortunes on a grand scale,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “His clients sought his help in the wake of significant trauma and injury, yet he violated their trust to steal from them and fund his own lavish lifestyle, and he will now face the consequences of his actions.”
CLICK HERE TO SIGN UP FOR THE ENTERTAINMENT NEWSLETTER
The U.S. Attorney’s office claimed the “tens of millions of dollars” Girardi diverted from the law firm’s operating account were used to pay illegitimate expenses, including more than $25 million toward EJ Global, a company formed by his estranged wife to fund her entertainment career.
Jayne filed for divorce from Girardi in November 2020 after 21 years of marriage.
In addition, Girardi Keese funds were spent on “private jet travel, jewelry, luxury cars, and exclusive golf and social clubs.”
Due to the mounting legal problems related to the years-long theft from clients, Girardi Keese was forced into involuntary bankruptcy in 2020, according to the U.S. Attorney’s Office.
“Mr. Girardi was retained to advocate for clients who put their trust in him, but instead, lied to them and stole their money to fund his lavish lifestyle,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Girardi falsely promoted himself in the media as a pillar of the legal community with a heightened sense of justice, but the clients he wronged for many years have now found actual justice in today’s verdict.”
Girardi was disbarred from the State bar of California in 2022 and has been under a conservatorship overseen by his brother Robert since June 2021. He suffers from “major neurocognitive disorder” and was diagnosed with Alzheimer’s in March 2021.
