Disbarred former private damage lawyer Tom Girardi was convicted on Tuesday, Aug. 27 of embezzling greater than $15 million from his shoppers, with a federal jury in Los Angeles discovering the 85-year-old responsible on 4 counts of wire fraud.
It was a verdict that was a longtime coming for Actual Housewives of Beverly Hills followers, who’ve been invested within the case in opposition to Tom ever since his authorized troubles started making headlines not lengthy after his estranged spouse, Erika Girardi, filed for divorce in November 2020.
For the years since, the dialog within the courtroom of public opinion has centered round how a lot Erika knew and her degree of accountability for reimbursing Tom’s alleged victims. The controversy even transferred to RHOBH, the place the Bravo cameras captured Erika’s costars grilling her about her obvious lack of empathy and questioning why she wasn’t turning over her property.
However legally, Erika — who has insisted she had no information of Tom’s crimes — has remained within the clear. Regardless of battling an onslaught of civil lawsuits, lots of which she has received, there has not been any federal indictments concentrating on Erika.
So does Tom’s newest responsible verdict change that?
To reply that query and extra, ipromiseyoumedia turned to Emily D. Baker, a lawyer and former L.A. Deputy District Lawyer who has amassed an enormous following on-line for the authorized evaluation and commentary she supplies on the most important circumstances throughout leisure and past. A longtime follower of the Tom Girardi saga, Baker goes into depth in regards to the circumstances, the place issues stand together with his money owed and why he and Erika’s divorce probably will not be settled anytime quickly.
ipromiseyoumedia: Let’s begin with the large query proper off the bat. This verdict in opposition to Tom — what does it imply for Erika?
Baker: So Erika solely was mentioned on this federal case as to the place the cash may’ve gone. In case you keep in mind, Erika famously denied on the present that cash went immediately from Girardi Keese, Tom’s now defunct legislation agency, to EJ World, the corporate related to Erika’s music profession, Erika Jayne. However the feds confirmed in courtroom that cash did, actually, just do that. Now, that does not imply the cash went into Erika’s pocket, however that does imply that Erika benefited from Tom’s theft. Girardi Keese was paying for her profession — the lavish life-style, the music movies, the costuming (or not paying for the costuming, given allegations from the MARCO MARCO lawsuit)…
However Erika was not charged right here, simply Tom.
Proper, Erika was not charged. Erika shouldn’t be a goal on this, and it would not appear she shall be. There’ll probably be different arrests on this case, however these shall be associated to the Los Angeles prosecution of different attorneys within the agency, not Erika.
Tom’s responsible conviction makes him accountable to pay again the cash he stole from his victims. Will Erika be on the road for any of that too?
No, the federal authorities will not be going after Erika for that. That is what the civil lawsuits she has been battling have been doing. There’s a federal forfeiture order, so the feds will attempt to discover cash to forfeit. However there’s not lots of property left for Tom Girardi as a result of it is all within the chapter, which is the place the monetary restitution turns into very sophisticated.
Nevertheless, Tom and Erika Girardi have been separated legally since 2020. That is why this order coming in now shouldn’t be going to be one thing she’s required to pay as a debt within the marriage, as a result of they’re already separated. The divorce is on maintain due to the conservatorship that he is below, however nonetheless — since they’re legally separated, this debt is not her debt.
The chapter is a unique story although? That debt is her debt?
Sure, the chapter of Tom Girardi — as a result of there’s additionally the chapter of Girardi Keese, which is completely different. Within the chapter of Tom Girardi, money owed that are not paid will not be discharged or written off or erased. Erika will nonetheless be chargeable for these as a result of these have been incurred throughout marriage, together with tax liabilities and issues like that. The chapter is Erika’s greatest drawback.
And settling the divorce will not change that?
No, as a result of there’s not going to be a lot left to settle with the divorce. However even in settling the divorce, it is not going to get her out from below it.
Will the divorce be settled anytime quickly?
I do not suppose there’s an optimistic likelihood that the divorce will get resolved earlier than he’s sentenced. The divorce could be very a lot held up due to the conservatorship. It appears extra probably that after the chapter is finished and there is a extra reasonable view of what the remaining money owed are, then some motion can occur within the divorce. There’s nothing she will do to pressure the divorce ahead till then.
She simply has to sit down again and wait.
Precisely. Erika is in a really legally troublesome state of affairs. It may take awhile. And she or he’s probably not going to have the ability to get spousal assist from Tom or say these martial money owed must be Tom’s, so it may be powerful. I’m certain she and her attorneys are speaking in regards to the excellent tax liabilities as nicely. So the monetary crater for Erika is a good distance from completed, and we would see it leading to her needing to additionally file for chapter as soon as the Tom Girardi bankruptcies are completed. That would not shock me.
If she recordsdata for private chapter, would that get her off the road in paying these money owed?
It is so advanced. Oftentimes, you file a chapter to resolve money owed that you simply can not pay after which, on the finish of chapter, all of these money owed are usually discharged. Whether or not they receives a commission for pennies on the greenback or whether or not they get erased fully relies on lots of guidelines. However tax liabilities, these can’t be discharged. So eliminating the patron debt, bank card debt, debt to the vet and the gardener, and many others. — eliminating these would enable her to make a plan with the Franchise Tax Board and the IRS. I am certain she and her attorneys are speaking about that.
That is what I might do if I used to be the legal professional. I believe it is a part of why she’s fought so arduous within the chapter for her property, as a result of she goes to be caught with these tax money owed. These don’t go away. The federal government all the time will get theirs. “Dying and taxes” is a saying for a purpose.
And if Tom dies earlier than any of that is resolved?
It would not change something with the money owed. As a result of once more, they’re marital money owed. The place that they are in now and the place that they’d be in if he dies is not a lot completely different. It simply makes the filings on the divorce just a little completely different. It will resolve the divorce, it would not resolve the money owed.
Erika, it must be mentioned once more, has maintained she knew nothing about Tom’s crimes. She’s confronted a slew of civil lawsuits and has scored authorized wins in lots of them, together with a 2022 one the place a decide dominated the prosecution did not show she was “aiding and abetting” her ex. Do these wins assist her in different circumstances?
Sure. These circumstances have proven it’s totally troublesome to show that Erika knew the place that cash was coming from. They usually cannot actually go after cash that she’s making now or substitute these property for older property to get Tom’s victims paid.
Tom will not be sentenced till December, and prosecutors are saying he might get upwards of 80 years in jail — 20 years for every depend. How is that remaining choice decided?
In federal sentencing, the Division of Prisons do a extremely thorough pre-sentencing report independently. Then, the attorneys for each side can problem the report or add data to the report of their sentencing memorandums; they will ask for the report pointers to both be aggravated up or mitigated down; after which, advocate what sentence they want the decide to decide on. The decide shouldn’t be certain by most of that, and may select something throughout the authorized vary to condemn Tom Girardi to. However the authorities is seeking to present the decide a sample of conduct right here.
That sample of conduct, is that restricted to simply the 4 victims of Tom’s who have been part of this federal case? As a result of Tom nonetheless faces federal wire fraud fees in Chicago, stemming from the allegations that he pocketed over $2 million from members of the family of victims of the 2018 Lion Air crash. Does that issue into the sentencing right here too?
Oh, as Bethenny Frankel would say, they will actually “point out all of it.” The federal government shouldn’t be restricted simply to the charged victims for the sentencing memo. They will discuss in regards to the Lion Air case, they will convey in additional victims that complained to the state bar… they will attain again a long time to indicate he is been doing this all alongside.
What about his well being? In 2021, Tom was recognized with dementia and late-onset Alzheimer’s. A yr later, he moved right into a “restricted reminiscence care unit.” As you talked about, his brother, Robert Girardi, has been been named the official conservator for Tom and his property. Does any of that come into play?
When the decide dominated again in January that Tom was competent for trial, the decide did make notes that she thought Tom was malingering and exaggerating his signs of psychological decline. The crux of the protection argument was that Tom was so impaired that he could not kind the intent to commit these crimes (i.e. “Oh, he did not know what he was doing and if he misplaced some cash, he did not imply to try this”). However the decide dominated that any cognitive impairment was age-typical — not actually, Alzheimer’s or dementia. And the jury agreed with the decide of their responsible conviction. So I believe age shall be an element, however not any of those supposed well being points.
The decide allowed Tom to stay free till sentencing. Do you suppose he’ll do time?
I believe the federal government will argue that this can be a person who belongs in jail. After which the protection will convey up his age and the truth that he is by no means had any convictions earlier than or by no means been in hassle earlier than as causes to say he should not go to jail. And the federal authorities will say, “Effectively, he was bribing the state bar and everyone else. If not jail for him, then for who?”
So if he does time, how lengthy do you suppose it will be?
What we have seen trending with federal judges in fraud circumstances is that jail sentences are extra of the norm, although most sentences are very a lot not the norm.
Within the case of Sam Bankman-Fried, who was in control of the FTX collapse, he confronted a most sentence of 110 years however was sentenced to 25 years (despite the fact that there was over $100 million in loss). Now, he was stealing from savvy traders; Tom Girardi was stealing from shoppers, like Alex Murdaugh.
Murdaugh was sentenced to 40 years in federal jail for a number of fraud schemes. And the decide’s ruling on that sentence was scathing about how he took benefit of “essentially the most needy, susceptible folks.” Judges don’t like attorneys that steal. It makes the occupation look unhealthy, and when you can not belief attorneys to be moral with their shoppers, it undermines your complete authorized system of our nation. Judges are very aware of that, it doesn’t matter what your age is.
That is why I believe the federal government will present that these bar complaints return 40 years. They are going to argue, “This conduct did not begin in 2017, it began shortly after he grew to become a lawyer.”
Do I believe he’ll get 20 years even, which is the max for simply one of many counts? In all probability not, given his age. Do I believe any jail sentence shall be a really troublesome, impolite awakening for him? Sure, completely.
Going again to that Chicago case, that can occur after he is sentenced on this trial?
Sure, he will get sentenced on this and nonetheless face trial in Illinois on the Lion Air case. And that case is with [former Girardi Keese lawyers] Keith Griffin and David Lira, who’re additionally targets in Los Angeles. So we’re not completed with folks getting pulled into prosecutions. And the Girardi Keese chief monetary officer prosecution remains to be pending in Los Angeles and in Illinois, too…
That is Chris Kamon, who has been charged individually from Tom and has pleaded not responsible. Protection attorneys in Tom’s case this month actually appeared accountable the thefts on Kamon, arguing that Tom was only a figurehead and Kamon actually made these selections.
Yep, that is the “empty chair” protection — a.ok.a. the “another dude did it” protection or the “Shaggy, It Wasn’t Me” protection. Mainly you level to an empty chair and say, “Women and gentleman of the jury, this different man did all these unhealthy issues however he is not right here so you’ll be able to’t maintain my man accountable.” When one defendant shouldn’t be current in trial, the technique is all the time accountable the person who’s not there. That is when the prosecution sits again and goes, “Proper, convict them each then.”
Are these the tip? Or will there be extra lawsuits to come back for Tom Giardi?
I do not know if it’s going to open up extra lawsuits. This appears to be the complete scope.
Is the responsible conviction on this case justice for all of Tom’s alleged victims?
I’ve to marvel if it is bittersweet as a result of it is just a little “too little, too late.” The consumer victims of Tom Girardi wanted the cash when their settlements occurred. They wanted to cowl their medical payments, to change their houses, to deal with themselves. And as a substitute, they ended up spending years (if not a long time) combating to get the cash that they have been owed. Whereas their legal professional was spending it like water, on jets and music movies and American Specific playing cards. A few of them won’t ever be paid in full. Placing Tom in jail in his 80s would not change that actuality for them.
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What do you suppose, if something, is the takeaway lesson from Erika’s aspect?
Know who you are married to. I do not suppose she ever noticed this going this manner, and the very actual debt that she goes to be dealing with has to weigh on her. It is why, I think about, we see her staying on Actual Housewives and within the public eye, as a result of she has to work. She doesn’t have a alternative. And the particular person I am certain she thought was going to supply for her, as many do once they get married, was not that particular person.
In some ways, that is a story as outdated as time relating to marriages we have seen on Housewives.
It’s. And I’m wondering if, in the long term, we’ll see folks selecting to not get legally married and as a substitute simply be like, “We’re companions, we stay collectively, we’re dedicated, however I am not intertwining my monetary life together with your monetary life.” As a result of when you marry somebody, other than no matter prenup you’ve gotten, what’s theirs is yours. And that features debt.
For extra from Emily D. Baker, observe her on YouTube and Instagram; take heed to her official podcast, The Emily Present; and obtain her Legislation Nerd app.
