Prominent LA Attorney Tom Girardi Convicted of Wire Fraud in High-Profile Ponzi Scheme Trial
ICARO Media Group
In a landmark verdict, jurors reached a decision on Tuesday morning in the trial of Tom Girardi, the once esteemed Los Angeles attorney accused of orchestrating a 10-year Ponzi scheme that defrauded his clients of millions of dollars in settlement funds. The 85-year-old Girardi has been found guilty of four counts of wire fraud, as prosecutors successfully argued that he diverted at least $15 million away from four of his clients, some of whom experienced severe physical injuries or tragic losses.
Throughout the trial, prosecutors presented evidence that Girardi used the stolen money to finance an opulent lifestyle, splurging on private jets, jewelry, and a sprawling estate in Pasadena. The Pasadena property was famously featured on the reality show "The Real Housewives of Beverly Hills," which starred his now-estranged wife, Erika Girardi, a pop singer known as Erika Jayne. The allegations against Girardi were also exposed in the 2021 Hulu documentary series "The Housewife and the Hustler." Following the conviction, Girardi was subsequently disbarred in 2022.
U.S. Attorney Martin Estrada, in a statement announcing Girardi's conviction, characterized the once-revered attorney as a "Robin-Hood-in-reverse," highlighting how Girardi stole from the vulnerable to support his lavish Hollywood lifestyle. Federal prosecutors argued that between October 2010 and late 2020, Girardi intentionally misappropriated and embezzled millions from his clients. Shockingly, some of the victims were families who had lost loved ones in the tragic Lion Air Flight crash of October 2018, which claimed 189 lives. The crash was the first of two involving Boeing 737 Max 8 jets within a five-month span.
As Girardi's law firm faced financial challenges, it eventually succumbed to worsening financial issues and was forced into bankruptcy by the end of 2020. While Girardi vehemently denied the claims against him, his defense attorney, Charles Snyder, argued that Girardi's cognitive impairment had worsened due to diagnoses of dementia and late-onset Alzheimer's disease. Snyder also alleged that members of Girardi's former firm, Girardi Keese, had been stealing funds without Girardi's knowledge, perpetuating the scheme.
During the trial's closing arguments, Assistant U.S. Attorney Ali Moghaddas asserted that Girardi intentionally defrauded his clients, deceiving them into believing he was fighting for their cause. However, Girardi's clients were left waiting for their settlement funds to materialize, as days turned into months and months into years. On Tuesday, U.S. Attorney Estrada stated that Girardi could face a potential sentence of up to 80 years in prison during his sentencing on December 6. While Girardi currently resides in a nursing home in Orange County, Estrada emphasized that age alone would not exempt him from prison time.
Tom Girardi's legal career had once been highlighted by noteworthy victories, such as his involvement in the Hinkley water contamination lawsuit made famous in the film "Erin Brockovich." However, the attorney's reputation and stature now stand tarnished by the Ponzi scheme conviction. Girardi portrayed himself as a champion for the underrepresented, marketing himself as Erin Brockovich's lawyer. The Hulu documentary "The Housewife and the Hustler" shed light on the clients' allegations, including victims' families from the Lion Air crash who claimed that Girardi and his former colleagues had stolen over $3 million in settlement funds.
The courtroom drama was further intensified by the revelation that Girardi's now-estranged wife, Erika Jayne, had allegedly funded her pop music career with the ill-gotten gains. On the reality TV show "The Real Housewives of Beverly Hills," Jayne and her co-stars flaunted their luxurious lifestyles, showcasing designer clothes, extravagant jewelry, sports cars, and mansions. Jayne ultimately filed for divorce from Girardi.
The guilty verdict prompted spectators to reflect on Girardi's once-lauded status as a champion for justice, accusing him of using his celebrity status to exploit his clients. The news of his conviction and disbarment has left many shocked and outraged, wondering how such a prominent attorney could have succumbed to such unethical practices. As the legal saga continues, Girardi awaits his sentencing, facing the potential loss of his freedom and the severe consequences of his criminal actions.