Everything to Know About Tom Girardi’s Embezzlement Trial

As a seasoned film enthusiast with a keen eye for intrigue and drama, I find myself captivated by the unfolding tale of Thomas Girardi’s trial. With my vast library of movies spanning from classic noir to modern-day courtroom dramas, I can’t help but draw parallels between this real-life saga and some of Hollywood’s most gripping stories.

Erika Jayne, a cast member on the Real Housewives of Beverly Hills, has a husband named Thomas Girardi who is facing charges in a Los Angeles federal court for allegedly stealing over $15 million from his law firm’s clients. The 85-year-old attorney, who used to own Girardi Keese, has been accused of fraud more than 100 times, as reported by the L.A. Times. Due to signs of dementia, Girardi is currently under a conservatorship managed by his brother. In opening statements on August 6, prosecutor Scott Peatty claimed that Girardi used his clients’ trust funds like a personal bank account to finance his wife’s entertainment career. Although they have been separated since late 2020, their divorce proceedings are delayed due to a bankruptcy trial. Here is some information about Erika Jayne’s former husband and the case against him.

Why is Erika Jayne’s husband on trial?

The federal lawsuit against attorney Girardi primarily revolves around four of his clients, namely those who were supposed to receive funds from a client-settlement account but didn’t due to Girardi’s failure to disburse their rightful payments. These clients, set to testify in court, include an individual severely burned in an explosion, a woman bereaved by a boating accident, another with injuries from a faulty medical device, and a fourth with car accident-related injuries. All these clients had received substantial compensation for their injuries. The government accuses Girardi of stealing the funds and later lying about the payments having been made.

According to a federal complaint, it’s alleged that Girardi misused funds he diverted from his clients’ accounts. This money was reportedly used for various personal expenses, such as over $25 million for Jayne’s business EJ Global. Additionally, the funds were said to have been spent on private jets, jewelry, luxury cars, and high-end golf and social club memberships. Girardi’s partner in these charges is similarly accused of channeling millions from the law firm’s accounts for personal gain. By the end of 2020, Girardi’s law firm was declared bankrupt.

The legal team of Girardi stated that due to dementia following his arrest, their client was not mentally fit to face trial. On her show, Jayne often talked about Girardi’s declining mental abilities. In 2021, Girardi’s family moved him into an assisted-living facility, and his team claimed that due to the impact of Alzheimer’s disease on his cognition, he couldn’t help in his attorney’s defense for the case. However, the prosecution believed that Girardi was pretending or overplaying his symptoms to avoid trial. In January 2024, after a three-day hearing, the judge managing the case decided with the prosecution and concluded that Girardi was indeed mentally fit to stand trial.

Will Erika Jayne be called to testify?

On Real Housewives of Beverly Hills (RHOBH), Jayne has consistently stated that she was unaware of the fraud accusations and was taken aback when they surfaced. In the second part of Hulu’s documentary, The Housewife and the Hustler 2, focusing on Girardi’s alleged crimes, she interacted with several individuals who claimed to be victims of this fraud. During the documentary, Jayne revealed that she became aware of these allegations when she was mentioned in a 2019 lawsuit concerning an unpaid loan, alongside her husband, in the lawsuit. At that time, a lawyer for Girardi deemed the lawsuit as a “publicity stunt.” In simpler terms, Jayne found out about the fraud accusations against Girardi when she was named in a lawsuit from 2019, and initially, this lawsuit was considered a publicity tactic by Girardi’s legal representative.

Jayne explained, “I discovered that I was being sued by a lending company in Arizona, and this was my first time encountering such a situation. I asked, ‘Why have I been included in this lawsuit?’ The responses I received were consistently, ‘It’s nonsense, don’t worry about it, I’ve got everything under control.’ However, I’m not associated with the business, so I wondered why my name was included.”

In simpler terms, Jayne is not involved in the ongoing federal trial. She isn’t listed as a witness nor part of it. Her divorce from Girardi was finalized in November 2020 after 21 years of marriage. A lawsuit against both Jayne and Girardi was filed in Illinois about a month later, by the families who lost loved ones in the Lion Air Flight 610 crash. They claim that Girardi misused settlement funds meant for his clients, using it to maintain their expensive lifestyle. This case has been paused temporarily while Girardi’s federal trial is ongoing.

Has Erika Jayne said anything about her husband’s arrest?

Evan C. Borges, Jayne’s lawyer, asserts that although the account records indicated the payments were for global expenses of EJ Global totaling over $25 million, these funds were actually given to external parties for claimed business costs rather than directly to Jayne or her company, EJ Global. Earlier this year, Jayne expressed on RHOBH that she felt unsupported by her co-stars, particularly during a legal matter involving her earrings worth $750,000. When she requested patience while the court process unfolded, Garcelle Beauvais and Crystal Minkoff remained skeptical. Beauvais stated on the show, “I wish she would give up those earrings and donate something to the victims so she can have peace at night. She needs good karma.”

1) Jayne is absent from court but seems to be going on a cast trip for the show to St. Lucia, dancing at Carnival with Kyle Richards, Dorit Kemsley, and Sutton Stracke. The government intends to summon four of Girardi’s previous clients and an IRS special agent to testify and display evidence detailing the movement of funds in his clients’ trust accounts.

How long will Tom Girardi’s trial last?

The court proceedings commenced on Monday, August 5, starting with the process of selecting the jury. Following this, the opening arguments were presented on August 6. The trial is expected to continue for twelve consecutive days. In this case, a jury composed of seven men and five women will be rendering their verdict.

What penalty could Tom Girardi face if convicted?

Girardi was arrested on these charges in February of 2023 and ordered to hand over his passport before he was released on a $250,000 bond. Girardi is facing four counts of wire fraud, and each count carries a maximum sentence of 20 years in federal prison. Girardi has already been disbarred from practicing as a lawyer in California.

2024-08-09 18:54