Ex-Lawyer To The Stars Tom Girardi Gets 7 Years For Embezzling Client Funds

When people put their trust in lawyers, especially those with big reputations, they expect honesty and fairness. But sometimes, that trust is broken in the worst way.

Recently, a high-profile case involving a former celebrity attorney ended with a harsh reminder that even the most respected professionals can fall from grace and take advantage of those who depend on them.

Tom Girardi, once a well-known personal injury lawyer and estranged husband of reality TV star Erika Jayne from The Real Housewives of Beverly Hills, was sentenced to over seven years in prison for stealing millions of dollars from his clients.

At 86 years old, Girardi’s fall from one of California’s top legal figures to a convicted fraudster shows how deeply betrayal can cut, especially when vulnerable people are involved.

The sentence was handed down on June 3 in a federal court in California. The judge, Josephine L. Staton, ordered Girardi to pay more than $2.3 million in restitution and a $35,000 fine.

He was also instructed to turn himself in by July 17. This came nine months after a Los Angeles jury found him guilty on four counts of wire fraud, charges that carry a potential sentence much longer than what he received, up to 80 years in prison.

Once celebrated as a hero, Tom Girardi now faces accusations of stealing millions from his clients.

Bill Essayli, the U.S. Attorney who prosecuted the case, didn’t hold back in his statement. He called Girardi a “thief and a liar who conned his vulnerable clients out of millions.” Girardi had once called himself a “champion of justice,” but the government saw a very different picture.

Prosecutors said he ran his law firm, Girardi Keese, like a Ponzi scheme, spinning lies to avoid paying money owed to clients for over a decade. Girardi Keese, which closed years ago, was once one of the most powerful legal firms in California.

Tom Girardi himself had a reputation for taking on major cases and winning big settlements for victims. For example, he represented clients affected by the California wildfires and was involved in a lawsuit against the Pacific Gas and Electric Company.

That case ended in a $333 million settlement and was part of the inspiration behind the 2000 film Erin Brockovich, starring Julia Roberts. For years, Girardi was seen as a fighter for ordinary people against giant corporations.

But behind the scenes, things were very different. Prosecutors revealed that instead of using client money as promised, Girardi diverted tens of millions of dollars to pay for unrelated expenses.

More than $25 million was funneled to EJ Global, a company linked to his estranged wife, Erika Jayne. Meanwhile, clients who had suffered severe injuries or lost loved ones were left waiting for their settlements, often hearing excuses when they asked for their money.

During the trial, former clients testified about their experiences. One was an Arizona woman whose husband died in a boating accident.

Others were victims of a 2010 gas pipeline explosion in San Bruno, California. Prosecutors played recordings of Girardi’s voicemail messages, where he offered various reasons why he couldn’t pay the court-ordered money, mentioning tax bills, debts, and even claims that judges had blocked payments. His repeated line, “Don’t be mad at me,” became a haunting refrain for those left out in the cold.

Ethics in Legal Practice

Legal ethics expert Professor Stephen Gillers emphasizes that trust is the cornerstone of the lawyer-client relationship. He notes that when lawyers exploit this trust through actions such as embezzlement, it not only harms clients but also damages the legal profession's integrity.

According to Gillers, implementing rigorous ethical training and accountability measures can help prevent such misconduct. Law firms should consider ongoing education on financial management and ethical obligations to bolster trust and transparency.

Despite his health issues, Girardi was ruled fit for trial and held accountable for his crimes.

Girardi’s personal life has also been complicated. He and Erika Jayne separated, and his health has declined. He was diagnosed with Alzheimer’s disease, which led a court to place him under conservatorship managed by his brother.

Still, the judge in this case found him mentally competent to stand trial and to receive his sentence. Despite his age and health, Girardi must now face the consequences of his actions.

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Tom Girardi, once a familiar face on The Real Housewives of Beverly Hills and respected for his legal talent and celebrity ties, now leaves behind a legacy tainted by fraud and betrayal. His victims illustrate why holding powerful people accountable is crucial, regardless of their fame or influence.

Efforts to reach Girardi’s lawyer for comment after the sentencing went unanswered. Still, the effects of his conviction will linger with those who placed their trust in him and suffered the consequences.

Dr. Angela Duckworth, a psychologist known for her research on grit and perseverance, highlights that the repercussions of such legal failures extend beyond financial loss. Victims of embezzlement often experience emotional distress and a loss of faith in the legal system.

She suggests that creating support networks for these clients can be beneficial. Therapy and counseling could aid in rebuilding trust and resilience, as they provide a safe space for individuals to process their experiences and regain confidence in their future legal interactions.

Research-Based Understanding

As we've seen through the case of Tom Girardi, maintaining ethical standards in any profession is crucial for preserving trust and integrity. Experts like Suze Orman and others emphasize the importance of transparency in financial dealings. Preventive measures such as regular audits and ethical training for legal professionals can deter future misconduct.

Additionally, fostering open communication between clients and attorneys can create a culture of accountability, significantly reducing the risk of embezzlement. By prioritizing ethical practices and client support, the legal profession can begin to restore trust.