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Tom Girardi has been found guilty of stealing millions that prosecutors believe funded the lifestyle showcased in The Real Housewives.

Tom Girardi has been found guilty of stealing millions that prosecutors believe funded the lifestyle showcased in The Real Housewives.

Tom Girardi has been found guilty of stealing millions that prosecutors believe funded the lifestyle showcased in The Real Housewives.

On Monday morning, the jury reached a verdict in the case of Tom Girardi, once a powerful attorney from Los Angeles, who is accused of orchestrating a decade-long Ponzi scheme that defrauded his clients of millions of dollars intended for settling their cases. The 85-year-old Girardi was found guilty on four counts of wire fraud for diverting at least $15 million from four of his clients, some of whom faced serious physical injuries or lost loved ones as a result of their cases.

During the trial, prosecutors claimed that he spent the embezzled funds on private jets and jewelry, maintaining a lavish lifestyle in a sprawling estate in Pasadena, which featured in the reality show "The Real Housewives of Beverly Hills," starring his now estranged wife, Erika Girardi, a pop singer known as Erika Jayne. In 2021, the allegations against the former personal injury attorney became the main storyline of the Hulu documentary series "The Housewife and the Hustler." In 2022, he was stripped of his law license.

Comment from the assistant prosecutor

“Tom Giordano created a celebrity status for himself and lured victims by falsely portraying himself as a 'defender of justice,'” said Martin Estrada, assistant U.S. attorney, in a statement. “In reality, he was a Robin Hood in reverse, taking from those in need to support a lavish lifestyle in Hollywood.” Federal prosecutors claimed that he unlawfully appropriated and squandered millions of dollars from his clients between October 2010 and the end of 2020. Among those deceived by Giordano, the prosecution mentioned the families of the victims of the Lion Air disaster in October 2018, which claimed the lives of 189 people. This tragic incident was the first of two Boeing 737 Max 8 aircraft incidents within just five months.

By the end of 2020, prosecutors claim that the Giordardi firm was facing worsening financial problems, which ultimately led to its bankruptcy. Giordardi long denied the charges against him. Federal public defender Charles Snyder, representing him, insisted that Giordardi's mental abilities had deteriorated after being diagnosed with late-onset dementia and Alzheimer's disease. Snyder also claimed that employees of the closed Giordardi firm were stealing money "by the handfuls."

Intent of fraud

However, federal prosecutors insist that Giaratardi's fraud was intentional. "He wanted the outside world to think he was fighting for people who can't help themselves," said Assistant Prosecutor Ali Mogaddas during closing arguments on Monday. But clients were just waiting for the money to be available to them, and "days turned into months, and months into years," Mogaddas added. On Tuesday, Estrada noted that Giaratardi could face up to 80 years in prison at his sentencing scheduled for December 6, although the court will consider several factors. Giaratardi is currently living in a nursing home in Orange County. "We will not preempt the decision," Estrada said. "We will consider all the facts as they come in." Nevertheless, Estrada also stated that the possibility of imprisonment still exists. "But the fact that he is old does not mean we won't seek a prison sentence," he added.

The original case and the notoriety of Ghirardardi

In 1996, Giarratardi was one of the attorneys representing a small community in San Bernardino County – Hinkley, in a lawsuit against the energy company Pacific Gas & Electric over water contamination.

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As a result of the contamination with the chemical chromium, residents developed cancer and other illnesses. Pacific Gas & Electric agreed to a settlement of $333 million with hundreds of plaintiffs, and the case became famous thanks to the 2000 film starring Julia Roberts, "Erin Brockovich." At the time of the settlement, the Los Angeles Times reported that Giarratardi called it "a great moment in the history of correcting injustice." This attorney went on to secure million-dollar settlements in other high-profile cases, earning a reputation as a legal titan in Los Angeles.

Problems with clients

When the victims of Lion Air began asking Giattordi where the money was in May 2020, he tried to delay his response, according to an indictment filed by federal prosecutors last year. At that time, he allegedly told one of the clients in a letter: "I think you'll enjoy being with me in 30 days." A few months later, in December of the same year, the attorney representing the Lion Air victims along with Giattordi, Jay Edelson, sued him. He stated in court documents that Giattordi re-traumatized those he represented in the wrongful death lawsuit. "You have this kind of star lawyer with his star wife, spending money on anything. It's really hard to take in," Edelson said.

Documentary film

Next year, in the summer of 2021, the documentary "Housewife and Tycoon" was released, which highlighted the allegations against Girardi. By that time, prosecutors stated that he had already faced legal issues related to a decade of stealing from clients and had been forced to declare bankruptcy and had his law license revoked. The allegations soon appeared in a reality show featuring his now estranged wife. Erika Jayne, prosecutors claim, financed her pop music career with money that Girardi stole from clients. On the Bravo TV show "The Real Housewives of Beverly Hills," she showcases designer clothes, jewelry, sports cars, and mansions alongside her rivals. Ultimately, she filed for divorce from Girardi. "Of course, he lived a very lavish lifestyle," Estrada noted on Tuesday. "You just have to watch a little TV to understand how luxuriously he lived."

Case closure

Just two months after the release of the documentary, Giannotti began selling valuable items from his law firm on Wilshire Boulevard, including a championship ring from the Los Angeles Lakers, over 100 bottles of wine, and a framed check for a million dollars for settling a lawsuit regarding water contamination in Hinkley. In January, a federal judge found Giannotti competent to stand trial. After 13 days of proceedings, the jury found him guilty on four counts of wire fraud, each of which carries a maximum penalty of 20 years.

Marissa Wenzke- A journalist from Los Angeles. She has a bachelor's degree in political science from the University of California, Santa Barbara, and is a graduate of the Columbia University Graduate School of Journalism.

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