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Girardi Faces Two Indictments on Wire-Fraud Counts
Disbarred Lawyer Charged by Grand Juries in Central District of California, Northern District of Illinois; Included in Allegations Is Stealing Funds From Families of Lion Air Flight 610 Crash Victims
By a MetNews Staff Writer
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—AP Thomas V. Girardi is seen with wife Erika Jayne, who has filed for a dissolution of marriage. Federal Indictments of Girardi on wire fraud counts were announced yesterday in Los Angeles and Chicago.
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Federal grand juries in the Central District of California and the Northern District of Illinois yesterday indicted Tom Girardi—a onetime celebrity lawyer in Los Angeles, now disbarred—on multiple felony counts arising from allegedly cheating clients out of millions of dollars in settlements.
An issue that is bound to arise is whether Girardi. 83, is competent to stand trial. A conservatee in a care facility, he was diagnosed in March 2021 as being afflicted with dementia and Alzheimer’s Disease.
The indictment in Illinois stemmed from the former lawyer purportedly pocketing about $3 million that was due family members of persons who were in the Lion Air Flight 610 crash in Indonesia on Oct. 29, 2018, killing all 189 who were aboard. Boeing had manufactured the aircraft, and agreed to pay $500 million to family members.
Also indicted were Los Angeles attorney David Lira, Girardi’s son-in-law, and Christopher Kamon, who was head of accounting and finance for Girardi|Keese, the now-defunct firm Girardi founded and owned. The three face eight counts of wire fraud and four counts of criminal contempt of court.
Indictment in California
The indictment in California is against Girardi and Kamon. It alleges five counts of wire fraud.
According to the true bill, that five clients were cumulatively cheated out of “in excess of” $15 million.
The indictment says (with paragraph numbers omitted:
“Beginning at least as early as in or around 2010 and continuing through at least in or around December 2020, in Los Angeles County, within the Central District of California, and elsewhere, defendants GIRARDI and KAMON, together with others known and unknown to the Grand Jury, knowingly and with intent to defraud, devised, participated in, and executed a scheme to defraud victim clients to whom defendant GIRARDI and Girardi Keese had agreed to provide legal services….
“Defendant GIRARDI would negotiate a settlement on behalf of a client that would require the payment of funds to the client.
“Defendant GIRARDI would misrepresent, conceal, and falsely describe to the client the true terms of the settlement and/or the disposition of the settlement proceeds.”
Embezzlement of Funds
The indictment sets forth that Girardi and Kamon “would thereafter embezzle and misappropriate settlement funds” from the attorney-client trust accounts. It goes on to say:
“The improper purposes included, among other things, paying other Girardi Keese clients whose own settlement funds previously had been misappropriated, paying Girardi Keese’s payroll, and paying other Girardi Keese’s expenses, including its American Express Card bills encompassing charges for defendant GIRARDI’s and defendant KAMON’s personal expenses.
“As part of their scheme and to conceal the embezzlements and misappropriations from the victim clients, defendants GIRARDI and KAMON would send and cause to be sent lulling communications to the clients that, among other things, falsely denied that the settlement proceeds had been paid and falsely claimed that Girardi Keese could not pay the settlement proceeds to clients until certain purported requirements had been met, such as addressing supposed tax obligations, obtaining supposedly necessary authorizations from judges, and satisfying medical liens and other debts.
“As further part of their scheme and to conceal the embezzlements and misappropriations from the victim clients, defendants GIRARDI and KAMON would also send and cause to be sent lulling payments to the clients, falsely representing and maintain the false pretense that such payments were ‘advances’ on the purportedly yet-to-be received settlement proceeds, or ‘interest payments’ on the settlement proceeds that purportedly could not be paid to the clients until the fabricated requirements were satisfied.”
U.S. Attorney Comments
Martin Estrada, U.S. attorney for the Central District of California, said in a prepared statement:
“Mr. Girardi and Mr. Kamon stand accused of engaging in a widespread scheme to steal from their clients and lie to them to cover up the fraud. In doing so, they allegedly preyed on the very people who trusted and relied upon them the most—their clients. Actions like the ones alleged in the indictment bring disrepute upon the legal profession and will not be tolerated by my office.”
Asked by a reporter if Girardi is up to standing trial, Estrada responded:
“We leave it to the court to determine competency issues.”
Amir Ehsaei, acting assistant director in charge of the FBI’s Los Angeles field office, commented:
“Mr. Girardi and Mr. Kamon allegedly created a mirage over several years in order to disguise the fact that they were robbing Girardi Keese clients of large sums of money. The defendants exploited the hardships endured by their clients and took advantage of their unfamiliarity with the legal process while they denied victims what was rightfully due to them in order to fund their lavish lifestyles.”
Prosecutor’s Remarks
Tyler Hatcher, special agent in charge of the Internal Revenue Service’s criminal investigation unit in Los Angeles, remarked:
“Thomas Vincent Girardi should have been a pillar to our community. Instead, he is accused of creating an elaborate scheme to mislead his clients, victimizing them for a second time.
“Attorneys are put in a position of trust when they represent us during some of our most difficult times. Mistrust in the legal profession grows when clients can’t trust their attorneys to pay them the settlements intended to make them whole. IRS Criminal Investigation, along with federal prosecutors and our law enforcement partners, will continue to seek to keep the legal profession honest.”
Compounded Grief
In Chicago, John R. Lausch Jr., U.S. attorney for the Northern District of Illinois, had this to say:
“The substantial misappropriation alleged in this indictment compounded the grief and anguish of the clients who lost loved ones in the Lion Air crash. Attorneys who violate the trust of their clients and breach a fiduciary duty that is paramount to the practice of law must be held accountable.”
Robert W. “Wes” Wheeler Jr., special agent-in-charge of the Chicago field office of the FBI, added:
“The victims of this crime placed their faith in their attorneys during a time of great vulnerability. Taking advantage of victims of tragedy is a despicable act, and we will continue to seek justice for anyone who takes advantage of innocent Americans in their hour of need.”
Kamon in Custody
Kamon, who had moved to The Bahamas, was arrested on Nov. 7 at the Baltimore-Washington International Airport based on a sealed warrant and remains in custody.
Lira is an attorney with the West Los Angeles firm of Engstrom, Lipscomb & Lack. Walter Lack of that firm frequently tried cases with Girardi.
Girardi has reportedly moved to a nursing facility in Orange County. His wife, Erika Jayne, who appears on television’s “Real Housewives of Beverly Hills,” filed for a dissolution of marriage in 2020, but was quoted recently as saying:
“It’s ironic, but if I was divorced from Tom, I’d have to pay him alimony. I’ll stay married, thanks.”
Girardi, once wealthy, is now in bankruptcy and said to be impecunious.
A court appearance is scheduled for Monday.
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