Disbarred attorney Tom Girardi, 86, was sentenced to seven years and three months in prison for embezzling millions from former clients, according to NBC News.
The former husband of the Real Housewives of Beverly Hills and a high-profile lawyer was once celebrated for his role in the landmark 1993 lawsuit against Pacific Gas and Electric Co.—the case that inspired the Oscar-winning film Erin Brockovich, starring Julia Roberts.
"This self-proclaimed 'champion of justice' was nothing more than a thief and a liar who conned his vulnerable clients out of millions of dollars," said U.S. Attorney Bilal Essayli.
In addition to prison time, Girardi was ordered to pay $2.3 million in restitution and a $35,000 fine. His lawyers argued he was mentally unfit to stand trial due to Alzheimer’s disease, but a federal court ruled he was competent.
How his victims were impacted
Girardi was convicted of four counts of wire fraud in August 2024. Prosecutors said he stole tens of millions of dollars in settlement funds from clients over a decade. Victims included people who suffered severe burns, widows of accident victims and families of those killed in high-profile disasters, like the 2018 Lion Air crash that killed 198 people.
He often misled clients, telling them their settlement money was delayed due to tax issues, debt obligations or the need for a judge’s approval.
"Girardi sent lulling communications to the defrauded clients that, among other things, falsely denied that the settlement proceeds had been paid and falsely claimed that Girardi Keese [lawfirm] could not pay the settlement proceeds to clients until certain purported requirements had been met," said the U.S. Attorney's Office for the Central District of California in a news release.
According to Business Insider, one client was awarded $53 million in a settlement after a 2010 natural gas pipeline explosion in California caused severe burns. They ultimately received just $2.5 million.
Prosecutors said Girardi diverted more than $25 million from his law firm’s operating account to EJ Global, a company created to fund the entertainment career of his now-estranged wife, Erika Jayne, a star on Bravo’s Real Housewives of Beverly Hills.
Jayne, 53, has denied any involvement and was dismissed from a related lawsuit in 2022. She filed for divorce in 2020 after the allegations surfaced and has maintained she did not know about her husband's crimes.
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Hiring a lawyer? Here's how to protect yourself
Girardi wasn’t just any lawyer — he was one of the most prominent personal injury attorneys in the country. That’s what made his fraud so devastating. But there are still ways to protect yourself when hiring a lawyer, no matter how impressive their resume is.
Red flags to watch out for:
- Lack of transparency: If a lawyer avoids sharing documentation or gives vague answers about your case, that’s a warning sign.
- Payment delays: Once cleared, settlement checks should be disbursed promptly. Unexplained delays are cause for concern.
- No written agreements: Always get a written retainer agreement that outlines fees, responsibilities and expectations.
- Pressure tactics: Be cautious if a lawyer pushes you to make decisions without giving you time to understand your rights.
Even savvy clients can still be taken advantage of. If you suspect fraud or misconduct, here's what to do:
- Request documentation: Ask for a detailed breakdown of your settlement and where the money went.
- Check the bar association: Make sure the lawyer is licensed and review any disciplinary actions through your state’s bar association.
- File a complaint: Every state has a grievance or disciplinary board. In Ohio, for example, grievances are filed with the Ohio Bar.
- Hire a second lawyer: If something doesn’t feel right, get a second opinion.
Even a seasoned, high-profile attorney can betray their clients’ trust. Staying informed, asking questions and knowing your rights can help you avoid becoming the next victim.
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
