Attorney Tom Girardi, who gained fame representing plaintiffs against major corporations and later as the estranged husband of "Real Housewives of Beverly Hills" star Erika Jayne, was convicted of four counts of wire fraud. The trial revealed a years-long Ponzi scheme in which millions of dollars were misappropriated from client trust accounts at his now-defunct law firm, Girardi Keese.
Disgraced lawyer Tom Girardi, once renowned for his work representing plaintiffs against major corporations, was convicted Tuesday of four counts of wire fraud in a years-long Ponzi scheme.
Disgraced Lawyer Tom Girardi Convicted of Defrauding Clients in Ponzi Scheme
Following a 13-day trial, an 85-year-old Girardi was found guilty by a jury of defrauding clients through his now-defunct Girardi Keese law firm. The federal prison sentence for each count is a maximum of 20 years.
Girardi, who was disbarred from the State Bar of California in July 2022, gained notoriety for his role in the 1996 PG&E case, which inspired the 2000 film "Erin Brokovich." He found further fame as the husband of "Real Housewives of Beverly Hills" star Erika Jayne.
Disgraced Lawyer Tom Girardi Convicted of Defrauding Clients in Ponzi Scheme
The PG&E case, which resulted in a $333 million settlement for residents of Hinkley, California, was a landmark direct-action lawsuit at the time. However, evidence presented at Girardi's trial revealed a darker side to his practice.
"Tom Girardi built celebrity status and lured in victims by falsely portraying himself as a ‘Champion of Justice,'" said United States Attorney Martin Estrada after the 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."
Disgraced Lawyer Tom Girardi Convicted of Defrauding Clients in Ponzi Scheme
The scheme, which ran from October 2010 to late 2020, involved multiple individuals within Girardi Keese providing false information to clients. Girardi would claim settlement proceeds had been paid or that the firm could not distribute funds until certain requirements were met. These requirements, including faux tax obligations or authorization from judges, were later 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."
Disgraced Lawyer Tom Girardi Convicted of Defrauding Clients in Ponzi Scheme
The U.S. Attorney's office alleged that Girardi diverted tens of millions of dollars from the firm's operating account to pay illegitimate expenses, including over $25 million to EJ Global, a company formed by Erika Jayne to fund her entertainment career. Jayne filed for divorce from Girardi in November 2020.
Girardi Keese funds were also spent on "private jet travel, jewelry, luxury cars, and exclusive golf and social clubs." Due to the mounting legal problems, Girardi Keese was forced into involuntary bankruptcy in 2020.
Disgraced Lawyer Tom Girardi Convicted of Defrauding Clients in Ponzi Scheme
"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 in 2022 and has been under a conservatorship overseen by his brother since 2021. He suffers from "major neurocognitive disorder" and was diagnosed with Alzheimer's in 2021.
Disgraced Lawyer Tom Girardi Convicted of Defrauding Clients in Ponzi Scheme
