Tom Girardi, a once-celebrated attorney and former husband of “Real Housewives” star Erika Jayne, was convicted on Tuesday for defrauding clients through his law firm, Girardi Keese.
Fox News reported that the 85-year-old was found guilty of four counts of wire fraud following a 13-day trial. Girardi now faces a potential 80-year prison sentence.
The charges stemmed from a decade-long Ponzi scheme in which Girardi misappropriated millions from his clients to fund a lavish lifestyle.
Once hailed as a champion for victims of corporate malfeasance, Girardi's downfall marks a shocking end to his legal career, which included high-profile cases such as the 1996 Pacific Gas & Electric (PG&E) lawsuit.
Girardi gained national recognition for his role in securing a $333 million settlement in the PG&E case, the largest ever paid in a direct-action lawsuit at the time.
This case, which later inspired the 2000 film "Erin Brockovich," catapulted him into the spotlight as a lawyer committed to fighting for the underdog. However, beneath this public image, Girardi was engaging in a scheme to embezzle funds from his clients.
The fraudulent activities spanned from October 2010 to late 2020. During this time, Girardi misappropriated client funds, redirecting them to pay for personal expenses, including luxury cars, private jet travel, and jewelry.
The scandal eventually led to Girardi Keese being forced into involuntary bankruptcy in 2020 due to mounting legal problems and unpaid debts.
In July 2022, Girardi was disbarred by the State Bar of California, marking the official end of his legal career.
By then, his reputation was in tatters, and the man once celebrated as a "Champion of Justice" was instead viewed as a "Robin-Hood-in-reverse," according to United States Attorney Martin Estrada.
"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," Estrada added.
The extent of Girardi’s betrayal became clearer as details emerged about his manipulation of clients who had suffered significant trauma and injury.
"Mr. Girardi exploited his clients’ misfortunes on a grand scale," said Tyler Hatcher, Special Agent in Charge of the IRS Criminal Investigation's Los Angeles Field Office.
Girardi's actions, which violated the trust of those who sought his help, have now led to his conviction and likely severe penalties.
Girardi's legal issues were compounded by personal struggles.
Diagnosed with Alzheimer's in March 2021, he has been under a conservatorship overseen by his brother, Robert Girardi, since June of the same year.
The diagnosis of a "major neurocognitive disorder" raised questions about his ability to stand trial, though the court ultimately proceeded with the case.
Meanwhile, his marriage to Erika Jayne, star of "Real Housewives of Beverly Hills," also unraveled amidst the legal turmoil. Jayne filed for divorce in November 2020 after 21 years of marriage.
During the trial, it was revealed that funds from Girardi Keese had been diverted to EJ Global, Jayne's company, to the tune of $25 million.
This money, meant for Girardi's clients, was instead used to finance a luxurious lifestyle that included expensive jewelry and memberships to exclusive clubs.
Girardi’s conviction has left a significant stain on his once-prominent legacy. Akil Davis, the Assistant Director in Charge of the FBI's Los Angeles Field Office, emphasized the gravity of Girardi's actions, stating, "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."
This verdict marks a critical point in a saga that has gripped both the legal and entertainment communities.
Girardi, who once wielded considerable influence and garnered respect in his field, will now be remembered for his betrayal of the very clients he vowed to protect.
