Tom Girardi, former 'Real Housewives' husband, sentenced to prison on his 86th birthday
Girardi sentenced to prison for fraud scheme
Tom Girardi, estranged husband of "The Real Housewives of Beverly Hills" star Erika Jayne, has received his prison sentence for stealing millions of dollars from his clients.
LOS ANGELES - Disgraced former attorney and ex-"Real Housewives" husband Tom Girardi was sentenced to more than seven years in prison on Tuesday, his 86th birthday, for orchestrating a long-running Ponzi scheme that defrauded clients of nearly $20 million.
What we know:
Girardi, 86, was sentenced to seven years and three months in federal prison for defrauding clients of approximately $19.4 million in a Ponzi scheme. The scheme spanned 10 years.
U.S. District Judge Josephine Staton delivered the sentence in downtown Los Angeles, ordering Girardi to pay over $2.3 million in restitution to four victims, in addition to fines.
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Girardi is ordered to surrender to the designated prison by July 17.
Former attorney Tom Girardi appears at the United States Courthouse in Los Angeles, CA on Tuesday, Aug. 6, 2024. He faces federal charges that he pilfered funds from his clients in order to finance his lifestyle. (Myung J. Chun / Los Angeles Times vi
Girardi's attorney, Sam Cross, argued for his client to remain in a senior care home due to "moderate dementia" and physical ailments, stating that a prison sentence would be "meaningless punishment" given his condition.
On Monday, Judge Staton heard testimony from government medical experts and defense witnesses, ultimately ruling that the federal prison system could provide adequate care for Girardi despite his health issues.
Girardi has been housed in a secure memory care section of an assisted living facility in Seal Beach for over two years, with a six-week period earlier this year spent at a federal facility in North Carolina for psychological evaluation.
The judge stated that Girardi "wielded his power" against vulnerable victims who had experienced "catastrophic" losses, and used their money as his "personal slush fund" for a lifestyle of "private jets and country clubs."
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Joe Ruigomez, a former client, spoke to the court, detailing how Girardi concealed the true amount of a $53 million settlement from a lawsuit against PG&E and failed to provide him with the agreed-upon funds. Ruigomez described turning to Girardi for help only to be "met by deception and exploitation."
Prosecutors had sought a 14-year prison term for Girardi's August 2024 convictions for four counts of wire fraud.
Chris Kamon, 51, the former accounting chief at Girardi's firm, was sentenced in April to over 10 years in prison for enabling and committing embezzlement, and ordered to forfeit $3.1 million.
Girardi's estranged wife, "Real Housewives of Beverly Hills" cast member Erika Jayne, filed for divorce in November 2020 and has not been charged in the case.
What they're saying:
Assistant U.S. Attorney Scott Paetty told the court, "If there is ever a defendant to cut a break to -- this is not the one. You do not get a pass for being a successful con artist."
Judge Josephine Staton remarked that "The reason clients weren't getting their money" was that Girardi was "robustly" spending it on his and his then-wife's lifestyle. She also noted that Girardi's once-respected name "is now a watchword" for corruption.
Girardi, when asked if he had anything to say, mumbled that he had never stolen client's funds and "everybody got everything they were owed."
Girardi's attorney Sam Cross argued, "For Tom Girardi, there is no meaningful punishment. This leaves only meaningless punishment. It is not necessary that he die in prison."
Prosecutors wrote that Girardi's "yearslong theft of client funds from his law firm's trust accounts and the myriad lies he told to cover up his theft represent a calculated and devastating betrayal of the very people that turned to him for help in their darkest hour."
Joe Ruigomez stated that his family's path to recovery "turned into a nightmare" after seeking Girardi's help.
The backstory:
Girardi was once considered one of the most successful and prominent lawyers in the country, known for representing plaintiffs in high-profile class-action lawsuits, including the toxic groundwater case dramatized in "Erin Brockovich" and Bryan Stow's civil suit against Major League Baseball.
His law firm, Girardi Keese, collapsed in late 2020 after accusations in a lawsuit that Girardi embezzled money intended for clients in litigation over an airplane crash in Indonesia.
Girardi was disbarred in 2022, with the State Bar of California reporting over 200 complaints against him for misappropriation of settlement money, abandonment of clients, and other serious ethical violations over his four-decade career.
Girardi is currently in bankruptcy proceedings, and his former law firm faces more than $500 million in claims.
What's next:
Girardi is ordered to surrender to the prison institution designated by the U.S. Bureau of Prisons by July 17.
His former law firm and he remain in bankruptcy proceedings, facing substantial claims from creditors and victims.
The Source: Information for this story is from City News Service.