Former attorney and reality TV star Tom Girardi has been sentenced to 87 months in federal prison. Through his criminal enterprise, he directed a large-scale embezzlement scheme, including defrauding clients through unauthorized transactions out of more than $100 million dollars. During the September 1st sentencing, we learned of Girardi’s deeply-rooted financial malfeasance that spanned over a decade. His actions hurt countless people who relied on his legal work.
Between 2010 and 2020, Girardi mishandled his law firm, Girardi Keese. Feds called his operations a historic Ponzi scheme. He misappropriated settlement money meant for clients, redirecting millions awarded from settlements to other non-related budgets. Almost $25 million of those misappropriated funds were funneled to EJ Global. This reality company was co-founded by his estranged wife, Erika Jayne, of “Real Housewives” fame.
Girardi’s legal woes escalated in 2023. He had recently been indicted by a South Carolina grand jury for stealing more than $18 million from his clients. In August of that same year, he was convicted on four counts of wire fraud. As part of his sentencing, he was ordered to pay $35,000 in fines. On top of that, he deserves to pay over two million dollars in restitution to his victims. He must now report to federal authorities by July 17.
U.S. Attorney Bill Essayli expressed the gravity of Girardi’s deceit:
“This self-proclaimed ‘champion of justice’ was nothing more than a thief and a liar who conned his vulnerable clients out of the millions of dollars.”
The consequences of Girardi’s misconduct go far beyond his individual sentencing. Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation, stated:
“This sentencing brings a level of recompense for countless victims of Mr. Girardi’s long-running scheme to enrich himself on the backs of clients who trusted him in some of their worst days.”
In 2022, Girardi was disbarred as a consequence of his fraud. The impact of this high-profile case continues to have repercussions. Next month, further Girardi Keese attorney David R. Lira will go on trial for his part in the alleged escrow scheme.
As the legal proceedings continue to play out, the victims continue to fight for their recovery. Like any profession, we are not immune to vulnerabilities, and this case serves as a stark reminder for our profession. The response of the judicial system to Girardi’s actions thus far has been more than fitting. Its mission is to bring justice to the ones most damaged by his treachery.
