Los Angeles Attorney Convicted in Massive Ponzi Scheme

Disgraced attorney Tom Girardi, once a legal powerhouse, was found guilty in a massive $15 million fraud scheme.

At a Glance

Tom Girardi convicted of four counts of wire fraud in a 10-year Ponzi scheme
Embezzled at least $15 million from vulnerable clients, including crash victims’ families
Lavish lifestyle funded by stolen money, including private jets and jewelry
Faces up to 80 years in prison, with sentencing scheduled for December 6

Fall from Grace: The Downfall of a Legal Titan

Tom Girardi, once hailed as a champion for the underdogs, has been found guilty of orchestrating a massive fraud scheme that spanned a decade. The former high-powered Los Angeles attorney, known for his involvement in high-profile cases and his appearances on “The Real Housewives of Beverly Hills,” now faces up to 80 years in prison for embezzling millions from his clients.

Girardi’s conviction on four counts of wire fraud marks a stunning reversal of fortune for a man who once represented plaintiffs in landmark cases, including the toxic groundwater lawsuit dramatized in the film “Erin Brockovich.” Federal prosecutors accused Girardi of running a sophisticated Ponzi scheme from 2010 to 2020, diverting at least $15 million from four clients, some of whom had suffered serious injuries or lost loved ones.

Former high-powered litigator Tom Girardi was convicted Tuesday of running a massive 10-year Ponzi scheme in which prosecutors said he siphoned at least $15 million in settlement funds from four of his clients. https://t.co/NPqQSVJGMm

— FOX 11 Los Angeles (@FOXLA) August 27, 2024

A Lavish Lifestyle Built on Stolen Dreams

Prosecutors argued that Girardi used the stolen funds to finance an extravagant lifestyle, complete with private jets, expensive jewelry, and other luxuries. This opulent way of life was prominently featured on “The Real Housewives of Beverly Hills,” where Girardi’s now-estranged wife, Erika Jayne, flaunted their wealth to millions of viewers.

“Tom Girardi built celebrity status and lured in victims by falsely portraying himself as a ‘Champion of Justice,'” U.S. Attorney Martin Estrada said in a statement announcing Girardi’s conviction. “In reality, he was a Robin-Hood-in-reverse, stealing from the needy to support a lavish, Hollywood lifestyle.”

The extent of Girardi’s fraud came to light in 2021 when allegations were featured in the Hulu documentary “The Housewife and the Hustler.” As the scandal unfolded, Girardi’s law firm faced financial ruin, eventually filing for bankruptcy with over $500 million in claims against it.

A Defense of Diminished Capacity

Throughout the trial, Girardi’s defense team attempted to paint a picture of a once-brilliant legal mind now ravaged by cognitive decline. They argued that Girardi’s actions were the result of dementia and Alzheimer’s disease, claiming he was unaware of the financial misdeeds occurring at his firm.

“Girardi was not paying close attention” to the firm’s operations as he “got old, got sick, and lost his mind,” according to his defender Charles Snyder.

However, prosecutors maintained that Girardi’s actions were intentional and calculated, presenting evidence of his active involvement in the fraud scheme. The jury ultimately rejected the defense’s arguments, finding Girardi fully culpable for his actions.

A Legacy in Ruins

Girardi’s conviction marks the end of a legal career that once seemed unassailable. Disbarred in 2022, the former attorney now faces not only prison time but also the complete dismantling of his reputation. The man who once represented plaintiffs in the famous 1996 Hinkley water contamination lawsuit against Pacific Gas & Electric now stands as a cautionary tale of greed and betrayal.

“Mr. Girardi exploited his clients’ misfortunes on a grand scale,” IRS Criminal Investigation Special Agent in Charge Tyler Hatcher stated. “His clients sought his help in the wake of significant trauma and injury, yet he violated their trust to steal from them and fund his own lavish lifestyle, and he will now face the consequences of his actions.”

As Girardi awaits sentencing on December 6, the legal community and his former clients are left to grapple with the aftermath of his actions. The once-celebrated attorney’s fall from grace serves as a stark reminder of the importance of ethical conduct in the legal profession and the devastating consequences when that trust is betrayed.