Davidson News

Davidson News

Tom Girardi Found Guilty In $15M Client Fund Theft

Tom Girardi, a once-prominent California attorney whose career achievements inspired the Oscar-winning film “Erin Brockovich,” was found guilty by a Los Angeles federal jury on Tuesday of four counts of wire fraud.

Girardi’s Fall from Legal Prominence

The 85-year-old lawyer, who had previously been a revered figure in the U.S. plaintiffs’ bar, was accused by federal prosecutors of stealing $15 million in settlement funds from his clients—funds they were awarded in personal injury cases. This verdict marks a dramatic downfall for Girardi, whose legal prowess was once celebrated, but whose actions have now permanently tarnished his reputation.

Tom Girardi Found Guilty In $15M Client Fund Theft
Source: The Hill

Girardi’s fraudulent activities first came to light in 2020, leading to the loss of his law license and the eventual collapse of his law firm, Girardi Keese. Prosecutors painted a picture of a man who, despite his legal successes, deceived his clients and embezzled money intended for those he was supposed to represent. Girardi’s personal and professional life further unraveled as he became estranged from his wife, Erika Jayne Girardi, a star on the reality show “The Real Housewives of Beverly Hills,” adding a public and sensational dimension to his legal troubles.

Defense Blames Fraud on CFO Amid Dementia Claims

Throughout the trial, Girardi’s defense team attempted to shift the blame to Christopher Kamon, the former chief financial officer of Girardi Keese. They argued that Kamon, not Girardi, was responsible for the misappropriation of funds. Girardi’s lawyers also claimed that their client, who is now 85, suffers from dementia, suggesting that his cognitive decline could have contributed to the alleged fraud. Despite these arguments, the jury was unconvinced, and the verdict confirmed Girardi’s guilt in the embezzlement scheme.

Judge Josephine Staton, who presided over the case, had previously ruled that Girardi was competent to stand trial, dismissing the defense’s claims of dementia. This ruling was crucial in allowing the trial to proceed, despite the defense’s ongoing assertions that Girardi’s mental state rendered him incapable of understanding the charges against him.

Upcoming Trials for Co-Conspirators

The legal troubles surrounding the Girardi Keese firm are far from over. Christopher Kamon, the CFO whom Girardi’s defense sought to blame, has been charged with wire fraud and will face trial separately in January. Kamon, who allegedly embezzled $10 million from the firm, reportedly used the funds for lavish personal expenditures, including home renovations, luxury cars, and payments to an escort. He has pleaded not guilty to all charges.

Tom Girardi Found Guilty In $15M Client Fund Theft
Source: People

Additionally, Girardi, Kamon, and David Lira, Girardi’s son-in-law who also worked at the firm, face separate charges in Chicago. They are accused of misappropriating over $3 million in client funds that were supposed to go to the families of victims of the 2018 Boeing 737 Max Lion Air crash in Indonesia. All three have pleaded not guilty to these charges, and the Chicago trial is expected to further scrutinize their alleged criminal activities. Tom Girardi’s conviction in the Los Angeles case is just one chapter in a series of legal battles that continue to unfold, further complicating the legacy of a man once celebrated for his contributions to the legal field.

Leave a Comment