Former high-profile attorney Tom Girardi has been found guilty of defrauding clients out of approximately $15 million in a legal Ponzi scheme.
The 85-year-old disgraced lawyer, once known for his successful personal injury cases and as the estranged husband of "Real Housewives of Beverly Hills" star Erika Jayne, was convicted on four counts of wire fraud.
According to Daily Mail Online, the verdict was reached after just four and a half hours of jury deliberation. The trial, which lasted three weeks, revealed that between 2010 and 2020, Girardi misappropriated settlement funds intended for his clients, many of whom were victims of accidents or had lost loved ones. Prosecutors argued that Girardi used his law firm, Girardi & Keese, as a front for his fraudulent activities, describing it as a "den of thieves" with Girardi as the "thief-in-chief."
Girardi's career as a prominent attorney came to a crashing halt in 2020 when accusations surfaced that he had stolen millions from settlements won for victims of the 2018 Lion Air plane crash in Indonesia. This case, which resulted in 189 deaths, forms the basis of separate criminal charges still pending against Girardi in Chicago.
The once-celebrated lawyer, whose fight against a California utility giant inspired the Oscar-winning movie "Erin Brockovich," now faces up to 20 years in prison for each count of wire fraud. Girardi's sentencing is scheduled for December 6, marking a stark contrast to his former status as a legal powerhouse.
During the trial, Girardi appeared a shadow of his former self, dressed in wrinkled khaki pants and a shabby gray jacket, far removed from the $2,000-plus designer suits that once placed him on best-dressed lists.
The trial brought to light several heartbreaking stories of Girardi's victims. One such client, Joe Ruigomez, who suffered terrible injuries in a 2020 gas explosion, was told by Girardi that his settlement was $5 million when it was actually $50 million.
Similarly, Judy Selberg, who hired Girardi for a wrongful death lawsuit after her husband's fatal boating accident, is still owed a large portion of her $500,000 settlement more than four years later.
Assistant U.S. Attorney Ali Moghaddas stated:
Behind the curtain he was pilfering his clients' funds. It was just cruel to treat victims in this manner. He was buying two private jets while his clients weren't getting paid.... This case is a simple and sad story of trust violated and greed.
These cases exemplify Girardi's pattern of deceit, where he consistently lied to clients about why they weren't receiving their settlement money, citing false reasons such as liens, IRS issues, or pending judicial approval.
Girardi's defense team attempted to portray him as suffering from dementia, arguing that he had lost touch with reality due to cognitive decline. They also sought to shift blame onto Christopher Kamon, the former chief financial officer of Girardi & Keese, who faces similar charges in a separate trial.
Despite these efforts, the jury's swift decision indicates they found the prosecution's case compelling. The guilty verdict in this trial may have implications for Girardi's pending case in Chicago related to the Lion Air crash settlements.
In conclusion, Tom Girardi's conviction marks the end of a legal career that spanned decades and brought him fame and fortune. The $15 million fraud scheme has left numerous victims struggling financially and emotionally. Girardi now awaits sentencing, facing the possibility of spending his remaining years behind bars. This case serves as a stark reminder of the devastating consequences when legal professionals abuse their position of trust.
