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Disbarred lawyer Tom Girardi is convicted for stealing $15M from clients

By Debra Cassens Weiss

August 27, 2024, 2:59 pm CDT

A disbarred lawyer famous for his legal team’s portrayal in the movie Erin Brockovich was convicted Tuesday for stealing $15 million from four clients over the course of a decade.

Federal jurors in Los Angeles convicted 85-year-old Tom Girardi on four counts of wire fraud after about four hours of deliberation that began Monday, Law360 reports.

The Daily Journal and an Aug. 27 press release from the U.S. Department of Justice also covered the verdict.

In closing arguments Monday, federal prosecutor Ali Moghaddas had contended that Girardi was running a classic Ponzi scheme because he used new client settlement money to pay off old clients and to fund a lavish lifestyle, according to Law360.

Girardi is the estranged husband of Erika Girardi, who has appeared on The Real Housewives of Beverly Hills reality TV show. In the case portrayed in Erin Brockovich, Girardi was on the legal team that secured a $333 million settlement for groundwater contamination.

According to the DOJ press release, Girardi used $25 million from his now-collapsed law firm’s operating account to pay the expenses of an entertainment company formed by his wife. He also spent millions of dollars in firm funds on his private jet, jewelry, luxury cars and exclusive golf and social clubs, the press release said.

“Tom Girardi built celebrity status and lured in victims by falsely portraying himself as a ‘Champion of Justice,’” said U.S. Attorney Martin Estrada of Central District of California in the press release. “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.”

Girardi’s defense lawyers had contended that Girardi wasn’t responsible for financial problems at his firm, Girardi Keese, because of his dementia. A neurology professor had testified at trial that Girardi has such a small brain hippocampus that 98% of people likely have a larger one.

The defense had also argued that Girardi Keese’s former chief financial officer, Christopher Kamon, was responsible for the missing money. He is also charged in the California case.

Girardi Keese is no longer operating after being forced into bankruptcy. Girardi was disbarred in July 2022. Sentencing in the Los Angeles case is scheduled for Dec. 6.

Girardi, Kamon and another lawyer are also charged with stealing $3 million in settlement money in Chicago. Trial in that case is scheduled for March 2025.

See also:

Disbarred lawyer Tom Girardi ‘didn’t seem all there’ in late 2020, ex-employee testifies in embezzlement trial

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Criminal Justice

Disbarred lawyer married to ‘Real Housewives’ star found competent to stand trial for alleged $15M embezzlement

By Debra Cassens Weiss

January 4, 2024, 2:24 pm CST

Disbarred plaintiffs lawyer Tom Girardi has been found competent to stand trial in Los Angeles for allegedly stealing $15 million from clients.

U.S. District Judge Josephine Staton of the Central District of California noted the competency finding in a docket entry, report Law.com, Law360 and Reuters. His lawyers have said he suffers from dementia.

Girardi, 84, is the estranged husband of Erika Girardi, who appeared on The Real Housewives of Beverly Hills reality TV show. He was also an adviser to the movie Erin Brockovich and part of the successful legal team portrayed in the film that sued over contaminated groundwater. He currently lives in an assisted living facility.

Girardi is accused of stealing more than $15 million in Los Angeles. In Chicago, he is accused of misappropriating more than $3 million in settlement funds for five relatives of victims killed in the October 2018 crash of Indonesia’s Lion Air Flight 610.

Staton’s competency order is under seal. She has asked the parties to identify which parts of her order should remain sealed.

Girardi and his former law firm, Girardi Keese, have been forced into bankruptcy, according to Law360.

“Since Girardi Keese went bankrupt,” the article reports, “the trustee has filed over 100 complaints against casinos, former Girardi Keese employees and other law firms and companies, seeking a total of more than $140 million.”

See also:

“Ex-lawyer Tom Girardi lashes out at prosecutor in competency hearing; brain shrinkage reported”

“State bar finds ‘shocking past culture of unethical and unacceptable behavior’ in its handling of Girardi complaints”

“More than 1,700 California lawyers suspended for failure to comply with new trust account rules”