LOS ANGELES — Disgraced and disqualified attorney Tom Girardi, once known for winning large settlements, has been charged with stealing more than $18 million from clients and has been charged with federal lawsuits in Los Angeles and Chicago. He was indicted by a jury, prosecutors said Wednesday.
The indictment is the latest legal blow against a once-powerful player who has clashed with politicians and celebrities. One of the nation’s most prominent plaintiffs’ attorneys, Girardi is known for high-profile lawsuits, including the one that led to his $333 million settlement, portrayed in the movie Erin Brockovich. I was.
On a weekly radio show called “Champions of Justice,” Girardi stood up to big business on behalf of those harmed by pollution, medical products and automobiles. But at the same time, he was robbing some of those customers, Los Angeles federal prosecutor Martin Estrada said at a press conference.
“He claimed he was fighting for the less fortunate,” said Estrada. “However, our investigation revealed that behind this public figure, (he) was conducting a large-scale fraudulent activity.”
The plan includes a couple in Los Angeles whose son was paralyzed in a car accident, a widow in Arizona whose husband died when her boat overturned at speeds of 120mph, and families of victims of the 2018 Lion Air crash. included defrauding the 189, according to the indictment.
Girardi, 83, once played a supporting role in “The Real Housewives of Beverly Hills,” starring his estranged wife Erica Jayne, and was banned last summer for siphoning a client’s money. One of his companies, Girardi Keese, has gone bankrupt and he is said to be suffering from dementia and is under legal guardianship.
U.S. prosecutors in Chicago say Girardi, his lawyer son, and their company’s chief financial officer have settled with Boeing, the maker of the 737 Max operated by Indonesia’s Lion Air that crashed in the Java Sea in October. 189 died on February 29, 2018, when they said they had received funds for five clients who reached
John Rausch, U.S. Attorney for the Northern District of Illinois, said, “The material misuse alleged in this indictment exacerbated the grief and distress of our clients who lost loved ones in the Lion Air crash.
The Chicago law firm involved in the Lion Air lawsuit alleged last year that Girardi and his associates essentially ran a Ponzi scheme to siphon $100 million from clients, lawyers they worked with and others. and filed a racketeering lawsuit.
According to a lawsuit filed in Los Angeles by the Edelson Law Firm, “The real story seems to be a story out of a John Grisham novel. Girardi Keith was nothing more than a criminal organization masquerading as a law firm.” “In fact, Girardi Keese’s law firm operated what is now known to be the largest criminal extortion enterprise in the history of plaintiffs law.”
Girardi found fame and money with powerful corporations and public institutions such as major Hollywood studios, Lockheed, Los Angeles County Metropolitan Transportation Authority, and Pacific Gas and Electric. Roberts’ film is about a California desert community with polluted water. Girardi acted as an advisor to the Oscar-winning film.
“That particular incident revolutionized the way people think about all the toxic stuff they’re exposed to,” he told Lawyer Magazine in 2015.
Girardi married Jane in 2000. He spent a lot of money on her failing music career.
Jae-in filed for divorce in 2020.
Although Girardi’s legal and financial woes have only surfaced publicly in recent years, clients have filed more than 200 complaints against him over more than 40 years, the California Bar Association said in November. revealed to Nearly 60% of his complaints involved accounts set up to protect client funds.
He had never been publicly disciplined until the ban was lifted in June.
Reuben Durand, chairman of the bar association’s board of trustees, has admitted culpability over “serious failures” in its disciplinary system.
“There is no excuse here,” Durand wrote. “Girardi has irreparably harmed hundreds of his clients, but the State Bar could have done more to protect its citizens. This will never happen again.” can’t do it.”
An ongoing investigation by an outside law firm is examining whether Girardi’s influence or connections at the bar helped him avoid reprimand for an unusual amount of complaints.
Girardi and attorney David Lila, 62, his son-in-law and company CFO Christopher Cumon, face eight counts of wire fraud and four counts of contempt of court in Chicago.
Girardi and Kamon, 49, have been charged with wire fraud in Los Angeles for embezzling more than $15 million from customers, according to prosecutors.
In one case described in the LA indictment, Girardi settled a $53 million lawsuit against a man who suffered severe burns in a 2010 PG&E gas pipe explosion in San Bruno, California.
Over half of the settlement was then embezzled, with some used to pay expenses, company debt, and other clients whose funds were diverted. Meanwhile, payments to burn victims were delayed by a series of stalling tactics.
When asked how the Alzheimer’s diagnosis given to Girardi as guardianship would affect criminal cases, Estrada said it was up to the court to assess his mental abilities.
“The indictment charges 10 years of wrongdoing,” he said. “When Mr. Girardi was a lawyer, I believe the evidence shows that he was competent at the time.”
Girardi is scheduled to appear in federal district court in Los Angeles on Monday. His arraignment was set for him on February 7th in Chicago.
While in custody, Kamon pleaded not guilty to another wire fraud case in which he was accused of embezzling law firm funds to renovate two LA-area homes, pay for purchases, and hire escorts. .
Lawyers for Girardi and Kamon did not immediately respond to requests for comment.
Lira’s attorneys said his client was not guilty and would plead not guilty and fight the charges.
Attorney Damon Cheronis said in an email, “David Lira was not involved in the fraud scheme.” Lira is a respected attorney with over 30 years of experience. ”
Foody reports from Chicago. Associated Press journalist Andrew Dalton contributed to this report.
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