Latest news with #Girardi
Yahoo
17 hours ago
- Business
- Yahoo
L.A. lawyer and son-in-law of Tom Girardi pleads guilty to contempt of court
Days after a judge sentenced legal titan Tom Girardi to seven years in prison for stealing from clients, his son-in-law — formerly a high-ranking attorney at his now-defunct firm — pleaded guilty to a federal charge in Illinois. David Lira, 65, of Pasadena, admitted Thursday to one count of contempt of court for defying a Chicago judge's order concerning the distribution of settlement funds to clients whose relatives had perished in a 2018 Indonesian plane crash. As part of broader litigation to hold Boeing accountable for defects in its 737-MAX jets, Lira and Girardi negotiated payouts totaling $7.5 million for a group of widows and orphans in 2020. But the clients, who lived in Indonesia, did not receive their full settlements. Evidence would later emerge that Girardi was routinely using client money to underwrite a lavish lifestyle with his wife, 'Real Housewives of Beverly Hills' star Erika Jayne. Read more: Tom Girardi – disgraced legal titan, former 'Real Housewives' husband – sentenced to 7 years in prison Lira 'knew that Girardi did not pay the Lion Air Clients' settlement funds in full, in contravention of [U.S. District] Judge (Thomas) Durkin's orders, despite [the Indonesian clients'] inquiries about and demands for their Settlements,' according to a plea agreement filed Thursday. Durkin referred the case for criminal investigation, and prosecutors in Chicago filed wire fraud and other charges against Lira and Girardi in 2021. Prosecutors dropped the Chicago-based case against Girardi, 86, last month. Girardi was separately convicted of wire fraud last year in Los Angeles, resulting in the seven-year prison sentence handed down this week. Lira, who is married to Girardi's daughter Jacqueline, began working at his father-in-law's firm in 1999. He was sometimes called the firm's senior partner, though Girardi was the sole owner. Lira resigned from Girardi Keese about six months before its 2020 collapse, after confronting his father-in-law about the Lion Air case and demanding that Girardi pay the victims. As he moved on to another firm, Lira did not alert the victims or authorities about Girardi's mishandling of the money. Lira's defense attorney, Damon Cheronis, noted that 'the plea agreement did not assert any acts of fraud on the part of Mr. Lira.' Read more: Vegas parties, celebrities and boozy lunches: How legal titan Tom Girardi seduced the State Bar 'Mr. Lira continually asked Mr. Girardi to pay these clients their rightful settlement money pursuant to the court order, however Girardi did not,' Cheronis said in a statement. Lira is scheduled to be sentenced on Oct. 8. Prosecutors have not yet recommended a particular penalty, but they indicated in the plea agreement that under federal sentencing guidelines, Lira faces six to eight years in prison. Girardi and Lira represented the victims in the Lion Air crash alongside Chicago-based lawyer Jay Edelson. It was ultimately Edelson who brought to the judge's attention that the Indonesian clients were not paid by Girardi. 'We're pleased that David Lira, after years of portraying himself as an innocent bystander, has finally admitted he is a criminal,' Edelson told The Times on Thursday. 'We remain hopeful that the other criminals who helped Girardi pull off the largest Ponzi scheme in the history of the plaintiff's bar will also face disbarment and long prison sentences.' The widows and orphans ultimately received their settlement payments after Edelson's insurance provider agreed to foot the cost. The State Bar is pursuing disciplinary action against Lira and two other attorneys who worked at Girardi Keese. Lira continues to practice for a Century City law firm, though restrictions imposed by a bar court judge prohibit him from handling client money. Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.
Los Angeles Times
18 hours ago
- Business
- Los Angeles Times
L.A. lawyer and son-in-law of Tom Girardi pleads guilty to contempt of court
Days after a judge sentenced legal titan Tom Girardi to seven years in prison for stealing from clients, his son-in-law — formerly a high-ranking attorney at his now-defunct firm — pleaded guilty to a federal charge in Illinois. David Lira, 65, of Pasadena, admitted Thursday to one count of contempt of court for defying a Chicago judge's order concerning the distribution of settlement funds to clients whose relatives had perished in a 2018 Indonesian plane crash. As part of broader litigation to hold Boeing accountable for defects in its 737-MAX jets, Lira and Girardi negotiated payouts totaling $7.5 million for a group of widows and orphans in 2020. But the clients, who lived in Indonesia, did not receive their full settlements. Evidence would later emerge that Girardi was routinely using client money to underwrite a lavish lifestyle with his wife, 'Real Housewives of Beverly Hills' star Erika Jayne. Lira 'knew that Girardi did not pay the Lion Air Clients' settlement funds in full, in contravention of [U.S. District] Judge (Thomas) Durkin's orders, despite [the Indonesian clients'] inquiries about and demands for their Settlements,' according to a plea agreement filed Thursday. Durkin referred the case for criminal investigation, and prosecutors in Chicago filed wire fraud and other charges against Lira and Girardi in 2021. Prosecutors dropped the Chicago-based case against Girardi, 86, last month. Girardi was separately convicted of wire fraud last year in Los Angeles, resulting in the seven-year prison sentence handed down this week. Lira, who is married to Girardi's daughter Jacqueline, began working at his father-in-law's firm in 1999. He was sometimes called the firm's senior partner, though Girardi was the sole owner. Lira resigned from Girardi Keese about six months before its 2020 collapse, after confronting his father-in-law about the Lion Air case and demanding that Girardi pay the victims. As he moved on to another firm, Lira did not alert the victims or authorities about Girardi's mishandling of the money. Lira's defense attorney, Damon Cheronis, noted that 'the plea agreement did not assert any acts of fraud on the part of Mr. Lira.' 'Mr. Lira continually asked Mr. Girardi to pay these clients their rightful settlement money pursuant to the court order, however Girardi did not,' Cheronis said in a statement. Lira is scheduled to be sentenced on Oct. 8. Prosecutors have not yet recommended a particular penalty, but they indicated in the plea agreement that under federal sentencing guidelines, Lira faces six to eight years in prison. Girardi and Lira represented the victims in the Lion Air crash alongside Chicago-based lawyer Jay Edelson. It was ultimately Edelson who brought to the judge's attention that the Indonesian clients were not paid by Girardi. 'We're pleased that David Lira, after years of portraying himself as an innocent bystander, has finally admitted he is a criminal,' Edelson told The Times on Thursday. 'We remain hopeful that the other criminals who helped Girardi pull off the largest Ponzi scheme in the history of the plaintiff's bar will also face disbarment and long prison sentences.' The widows and orphans ultimately received their settlement payments after Edelson's insurance provider agreed to foot the cost. The State Bar is pursuing disciplinary action against Lira and two other attorneys who worked at Girardi Keese. Lira continues to practice for a Century City law firm, though restrictions imposed by a bar court judge prohibit him from handling client money.
Yahoo
2 days ago
- Entertainment
- Yahoo
Where Is Erika Jayne's Ex Tom Girardi Now? Inside the 'Real Housewives of Beverly Hills 'Alum's Life 5 Years After His Fraud Scandal
In 2020, famed lawyer Tom Girardi was accused of stealing from clients Girardi was previously married to Real Housewives of Beverly Hills star Erika Jayne, who filed for divorce in 2020 On June 3, Girardi was sentenced to seven years in prisonTom Girardi was once a powerhouse attorney known for suing large corporations and extracting huge settlements for his clients. Now, he will go to prison for seven years for stealing from them. On June 3, Girardi was sentenced by a federal judge in the Central District of California. In August 2024, he was convicted of four counts of wire fraud after embezzling millions from his clients. Girardi — who was portrayed in the 2000 film Erin Brockovich — began experiencing his personal and professional downfall in late 2020. That November, his wife of 21 years, Real Housewives of Beverly Hills star Erika Jayne, filed for divorce. Within the next month, the once-famed lawyer found himself in the center of a complicated web of legal controversies: He was accused of stealing client funds for his own personal spending; he was sued by his former law firm partners; and his law firm, Girardi Keese, was forced into involuntary bankruptcy. Girardi was diagnosed with dementia and Alzheimer's Disease in March 2021, and placed under the conservatorship of his younger brother, Robert, in July. In 2022, Girardi was officially disbarred by the state of California after being investigated for more than 200 disciplinary matters over his 40-year law career. In February 2023, he was indicted by two separate federal grand juries — one in Los Angeles and one in Chicago — for allegedly misappropriating $18 million in client settlement money, according to the Los Angeles Times. (A judge later dismissed the charges in the Chicago case ahead of his California sentencing, per Reuters.) Here is everything to know about where Tom Girardi is now — from the status of his legal woes to his future behind bars. After Girardi was indicted on five counts of wire fraud by a federal jury in California in February 2023, his legal team argued that the disbarred lawyer was incompetent to stand trial due to his declining mental state. But in January 2024, a judge declared Girardi competent to stand trial. During Girardi's 13-day 2024 trial, Girardi spoke publicly about the fraud and embezzlement charges against him for the first time when he took the stand to testify in his own defense. According to the Los Angeles Times, the disgraced lawyer denied any wrongdoing while testifying, insisting that 'every client got every penny that every client was supposed to get.' Girardi and his lawyers attempted to shift the blame to Christopher Kamon, the CFO of the now-closed law firm. In their closing arguments, Girardi's defense team portrayed their client as an 'elderly man with cognitive decline' and alleged that the theft of client money was 'Mr. Kamon's scheme,' the Los Angeles Times reported. Prosecutors, however, painted Girardi as the 'thief in chief' who ran a 'house of cards ... built on lies.' In 2024, Girardi was found guilty of embezzling more than $15 million from his clients over a span of 10 years. The jury deliberated for just four hours, according to the Los Angeles Times, and voted to convict Girardi on four counts of federal wire fraud. One juror, Miguel Lopez, said that the verdict 'wasn't a hard decision,' per the Los Angeles Times. 'Tom Girardi built celebrity status and lured in victims by falsely portraying himself as a 'Champion of Justice,' ' United States Attorney Martin Estrada said in a statement following the guilty verdict. '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.' On June 3, Girardi was sentenced to seven years in prison, after facing up to 80 years. He was also ordered to pay $2.3 million in restitution to victims and a $35,000 fine, according to NBC News. U.S. District Judge Josephine Staton issued the sentence, decrying Girardi for using clients' settlement money on "private jets and country clubs," per the Los Angeles Times. In a victim impact statement, Joseph Ruigomez — who enlisted Girardi's help after suffering burns over 90% of his body in a 2010 gas line explosion — said that Girardi was 'supposed to be a beacon of hope.' Instead, the case turned into a years-long 'a nightmare,' according to the Los Angeles Times. Erika spoke out on her former husband's legal woes in an interview with Extra's Billy Bush in November 2024. 'Tom was convicted and that was hard,' she said. 'You know, it's hard to see someone that you loved and respected and honored end like this." She continued, 'But I also really have to let go and move on. There's nothing left for me there, I can do nothing about it. It's beyond my control. But what I can control is the future of my life.' Erika filed for divorce from Girardi in November 2020 after 21 years of marriage. While they are legally separated, their divorce has stalled due to Girardi's conservatorship and legal troubles. Girardi has been ordered to surrender to authorities by July 17, according to The Guardian. Girardi's lawyers have plans to appeal his conviction, per the Los Angeles Times. Read the original article on People
Yahoo
2 days ago
- Business
- Yahoo
The estranged husband of a 'Real Housewives' star was sentenced for embezzling tens of millions from clients of his law firm
Tom Girardi was sentenced on Tuesday to more than seven years in prison for embezzling millions from clients. He was found guilty by a jury of four counts of wire fraud last year. Girardi diverted more than $25 million to his wife Erika Jayne's entertainment company, the US Attorney's office said A lawyer and estranged husband of a "Real Housewives" star was sentenced on Tuesday for leading a yearslong scheme that involved embezzling tens of millions of dollars in settlement payments from the clients of his law firm. Thomas Girardi, 86, was sentenced to seven years and three months in federal prison and ordered to pay about $2.3 million in restitution and a $35,000 fine by US District Judge Josephine L. Staton. She ordered Girardi to surrender to federal authorities by July 17. Girardi was charged in federal court last year in Chicago with eight counts of wire fraud and four counts of contempt of court for embezzling millions in settlement money. He was found guilty by a jury in August 2024 of four counts of wire fraud. Girardi, who has been diagnosed with Alzheimer's, was a personal injury attorney and ran the now-defunct law firm, Girardi Keese, in Los Angeles. The US Attorney's office for the Central District of California said in a statement that Girardi stole millions of dollars in client settlement funds and failed to make payments to the firm's clients, some of whom had suffered serious injuries in accidents. United States Attorney Bill Essayli said: "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." Girardi was known for taking on powerful corporations in high-profile cases. One lawsuit against California's Pacific Gas and Electric utility led to a $333 million settlement and was depicted in the 2000 film "Erin Brockovich" that starred Julia Roberts. The US Attorney's office said one client who suffered severe burns all over his body when a natural gas pipeline exploded in California in 2010 received just $2.5 million of a $53 million settlement. The US Attorney's office said Girardi diverted more than $25 million to cover expenses for EJ Global, his estranged wife Erika Jayne's performance and entertainment company. Jayne, who appears in Bravo's "Real Housewives of Beverly Hills," has denied any involvement and was not charged. Girardi Keese was forced into involuntary bankruptcy in late 2020 and the State Bar of California disbarred Girardi in July 2022. Christopher Kamon, the former head of Girardi Keese's accounting department, was sentenced in April to 10 years in federal prison after pleading guilty to two counts of wire fraud. He was a co-conspirator in facilitating the embezzlement and falsifying financial records and was ordered to repay nearly $9 million. Read the original article on Business Insider
Business Insider
2 days ago
- Business
- Business Insider
The estranged husband of a 'Real Housewives' star was sentenced for embezzling tens of millions from clients of his law firm
A lawyer and estranged husband of a "Real Housewives" star was sentenced on Tuesday for leading a yearslong scheme that involved embezzling tens of millions of dollars in settlement payments from the clients of his law firm. Thomas Girardi, 86, was sentenced to seven years and three months in federal prison and ordered to pay about $2.3 million in restitution and a $35,000 fine by US District Judge Josephine L. Staton. She ordered Girardi to surrender to federal authorities by July 17. Girardi was charged in federal court last year in Chicago with eight counts of wire fraud and four counts of contempt of court for embezzling millions in settlement money. He was found guilty by a jury in August 2024 of four counts of wire fraud. Girardi, who has been diagnosed with Alzheimer's, was a personal injury attorney and ran the now-defunct law firm, Girardi Keese, in Los Angeles. The US Attorney's office for the Central District of California said in a statement that Girardi stole millions of dollars in client settlement funds and failed to make payments to the firm's clients, some of whom had suffered serious injuries in accidents. United States Attorney Bill Essayli said: "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." Girardi was known for taking on powerful corporations in high-profile cases. One lawsuit against California's Pacific Gas and Electric utility led to a $333 million settlement and was depicted in the 2000 film "Erin Brockovich" that starred Julia Roberts. The US Attorney's office said one client who suffered severe burns all over his body when a natural gas pipeline exploded in California in 2010 received just $2.5 million of a $53 million settlement. The US Attorney's office said Girardi diverted more than $25 million to cover expenses for EJ Global, his estranged wife Erika Jayne 's performance and entertainment company. Jayne, who appears in Bravo's "Real Housewives of Beverly Hills," has denied any involvement and was not charged. Girardi Keese was forced into involuntary bankruptcy in late 2020 and the State Bar of California disbarred Girardi in July 2022. Christopher Kamon, the former head of Girardi Keese's accounting department, was sentenced in April to 10 years in federal prison after pleading guilty to two counts of wire fraud. He was a co-conspirator in facilitating the embezzlement and falsifying financial records and was ordered to repay nearly $9 million.
