Disgraced Lawyer Tom Girardi Convicted of Defrauding Clients in Massive Ponzi Scheme

Disgraced lawyer Tom Girardi, known for his high-profile cases and marriage to "Real Housewives of Beverly Hills" star Erika Jayne, has been convicted of swindling millions of dollars from clients in a years-long Ponzi scheme. The guilty verdict marks the downfall of a once-esteemed attorney who used his reputation to exploit the vulnerable.

Disgraced lawyer Tom Girardi, once a prominent figure in the legal world, has been found guilty of defrauding clients in a massive Ponzi scheme that spanned years. The guilty verdict, handed down by a federal jury following a 13-day trial, marks a stunning downfall for Girardi, who was once acclaimed for his work representing plaintiffs against major corporations.

Disgraced Lawyer Tom Girardi Convicted of Defrauding Clients in Massive Ponzi Scheme

Girardi, 85, was found guilty of four counts of wire fraud, each carrying a maximum sentence of 20 years in federal prison. The scheme, according to prosecutors, involved misappropriating and embezzling millions of dollars from client trust accounts at his now-defunct law firm, Girardi Keese.

The evidence presented at trial revealed a pattern of deceit and manipulation, with Girardi claiming that settlement proceeds had been paid and fabricating excuses to justify delays in distributing funds to clients. These excuses included fictitious tax obligations, debts, and authorizations from judges.

Disgraced Lawyer Tom Girardi Convicted of Defrauding Clients in Massive Ponzi Scheme

The U.S. Attorney's office alleged that the "tens of millions of dollars" Girardi diverted from the law firm's operating account were used to fund lavish expenses, including more than $25 million toward EJ Global, a company formed by his estranged wife, Erika Jayne, to promote her entertainment career.

Jayne, who starred in "Real Housewives of Beverly Hills," filed for divorce from Girardi in November 2020 after 21 years of marriage. She has denied any involvement in her estranged husband's legal troubles.

Disgraced Lawyer Tom Girardi Convicted of Defrauding Clients in Massive Ponzi Scheme

In addition to bankrolling his wife's lavish lifestyle, Girardi Keese funds were also spent on private jet travel, jewelry, luxury cars, and exclusive golf and social clubs, according to prosecutors.

The years-long theft from clients ultimately led to the involuntary bankruptcy of Girardi Keese in 2020. Girardi was disbarred from the State Bar of California in July 2022 and has been under a conservatorship overseen by his brother Robert since June 2021. He suffers from "major neurocognitive disorder" and was diagnosed with Alzheimer's in March 2021.

Disgraced Lawyer Tom Girardi Convicted of Defrauding Clients in Massive Ponzi Scheme

"Tom Girardi built celebrity status and lured in victims by falsely portraying himself as a ‘Champion of Justice,'" said United States Attorney Martin Estrada. "In reality, he was a Robin-Hood-in-reverse, stealing from the needy to support a lavish, Hollywood lifestyle. 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."

The guilty verdict against Tom Girardi sends a clear message that even the most prominent figures in the legal profession will not escape prosecution for defrauding clients. It serves as a reminder that the pursuit of justice and the protection of the vulnerable must always take precedence over personal gain.

Disgraced Lawyer Tom Girardi Convicted of Defrauding Clients in Massive Ponzi Scheme