Tom Girardi Found Guilty Of Defrauding Clients Of Millions, Funding His Spouse's 'Real Housewives' Lifestyle
Jurors delivered a decision on Tuesday in the case of Tom Girardi, a former influential Los Angeles attorney accused of orchestrating a decade-long Ponzi scheme that deprived clients of millions in settlement funds.
At 85 years old, Girardi was found guilty of four wire fraud charges, having redirected at least $15 million away from four clients, many of whom faced severe injuries or lost loved ones. Prosecutors highlighted his extravagant lifestyle, funded by the stolen money, which included private jets, jewelry, and a luxurious Pasadena estate featured on 'The Real Housewives of Beverly Hills,' starring his estranged wife, Erika Girardi, known as pop singer Erika Jayne.
In 2021, the scandal was the subject of the Hulu series, 'The Housewife and the Hustler,' and Girardi was disbarred in 2022.
"Tom Girardi built a celebrity image, drawing in victims by falsely portraying himself as a 'Champion of Justice,' " stated U.S. Attorney Martin Estrada, emphasizing that Girardi was actually a "Robin-Hood-in-reverse," stealing from the vulnerable to sustain a Hollywood lifestyle.
Prosecutors claimed that between October 2010 and late 2020, Girardi misappropriated millions, including funds from the families of victims in the 2018 Lion Air Flight crash, which killed 189 people. By late 2020, financial troubles forced Girardi into bankruptcy.
Girardi denies the accusations. His defense attorney, Charles Snyder, argued that Girardi's cognitive decline, including dementia and late-onset Alzheimer's, impaired his oversight of the firm, which other members exploited. However, prosecutors insisted that Girardi's fraud was deliberate.
Assistant U.S. Attorney Ali Moghaddas stated that Girardi's clients waited endlessly for their money. On Tuesday, Estrada noted that Girardi could face up to 80 years in prison, though his age and health will be considered.
His sentencing is scheduled for December 6.
