A new trial is set for Nov. 2 in the case of one-time prominent and monied Los Angeles attorney Michael J. Avenatti who is facing 10 counts of wire fraud in connection with allegedly siphoning nearly $10 million in client funds.

The first trial in the U.S. District Court of the Central District of California came to a halt on Aug. 24 when Senior Judge James Selna declared a mistrial because prosecutors withheld potentially exculpatory financial data gleaned from his law firm’s servers.

On July 8, Avenatti was sentenced to two-and-a-half years in prison by U.S. District Court Judge Paul G. Gardephe of the Southern District of New York on attempted extortion and wire fraud counts. The case, tried before a jury in Gardephe’s courtroom stemmed, from Avenatti’s effort to exact a sum of about $25 million from Nike by threatening to blacken its reputation in litigation if it did not comply.

Avenatti is in home confinement in the Venice, Calif. abode of a friend, Jay Manheimer. The order for house arrest, issued by Gardephe, is slated to expire on Dec. 15.

State Bar disciplinary charges were filed July 29, 2019, but proceedings were abated on Sept. 17 of last year in light of pending charges before Selna. In light of the conviction in the case tried in New York, State Bar proceedings against Avenatti are relegated to little significance, with it looming as a virtual certainty that he will be disbarred. He is under suspension based on the conviction.

Avenatti is scheduled to go on trial in January in the U.S. District Court for the Southern District of New York, charged with cheating former client Stormy Daniels, a porn star, out of $300,000. The money Avenatti is accused of taking was an advance to Daniels in connection with her book, “Full Disclosure,” in which she tells of her affair with then-President Donald Trump. Avenatti allegedly forged her signature on a letter to her literary agent, directing that payments be sent to a bank account he controlled.

The lawyer handled a number of high-profile cases, including representation of Daniels—whose actual name is Stephanie Clifford—in her actions against Trump in an effort to skirt a 2016 nondisclosure agreement she signed in connection with a $130,000 pay-off to her for agreeing not to talk publicly of their 2006 affair. He also handled her action against the then-president for defamation.

He is a litigant in a dissolution of marriage case in Orange Superior Court. In October, he was granted visitation rights with his son, age 6.

The one-time prominent trial lawyer, 82, has moved from his Pasadena mansion into an assisted living facility.

Girardi was placed on involuntary inactive status by the State Bar on March 9. Disciplinary charges were filed against him on March 30 alleging 14 counts involving the large-scale cheating of clients.

He has been placed in a conservatorship based on short-term memory loss, is being sued for divorce by his wife, actress/singer Erika Jayne, is in bankruptcy proceedings, and is facing litigation involving millions of dollars.

His ability to pay damages is in doubt. Girardi now professes a lack of assets, saying in court papers last year:

“At one point I had about $80 million or $50 million in cash. That’s all gone. I don’t have any money.”

The trustee in the bankruptcy of Girardi’s dissolved law firm, Girardi | Keese, is seeking $25 million from Jayne, asserting she knew that funds for gifts and “glam” services lavished on her were derived from settlements stolen from her husband’s clients.

Girardi and his firm represented four sets of plaintiffs—families, including minors—in multidistrict litigation in In Re: Lion Air Flight JT 610 Crash, assigned to the U.S. District Court for the Northern District of Illinois. The case stemmed from a plane crash on Oct. 29, 2018, causing the death of all 189 persons who were aboard. A settlement was reached. In violation of court orders to electronically disburse settlement funds that were in his client trust account (“CTA”), Girardi held onto $2 million of the funds. According to the State Bar complaint:

“On or about September 3, 2020, the balance in respondent’s CTA was $239,396.25. On or about December 4, 2020, before respondent had disbursed any portion of the $2,000,000.00 from respondent’s CTA to, or on behalf of the minor plaintiffs, the balance in respondent’s CTA was $14,384.85.”

On Dec. 14, 2020, U.S. District Court Judge Thomas Durkin of the Northern District of Illinois found Girardi in contempt for violating his orders, directed entry of a $2 million judgment against him, and ordered that his assets be frozen.

The judge said of the plaintiffs:

“These are widows and orphans. Half a million dollars for any one of these families is a significant amount of money. Life changing, given the tragedy they went through.”

A Dec. 2, 2020 class action alleges that Girardi and Jayne embezzled the money to fund their “outrageous lifestyles…in the glitz-and-glam world of Hollywood and Beverly Hills.”

It is also alleged by the State Bar that Girardi “willfully and intentionally misappropriated at least $269,759.70” of a $504,400 settlement of a client’s suit for the wrongful death of her husband.

Disbarred lawyer Philip James Layfield is facing a potential sentence of more than 200 years in prison after being convicted by a jury in the U.S. District Court for the Central District of California on Aug. 27 on 19 counts of wire fraud, one count of mail fraud, one count of tax evasion, one count of failure to collect and pay over payroll taxes, and one misdemeanor charge of failure to file a tax return. A sentencing hearing is slated for Nov. 8.

Layfield was remanded into federal custody. The 13-day trial took place in the courtroom of Judge Michael W. Fitzgerald,

As federal investigators closed in on him in 2017, Layfield fled to Costa Rica in June of that year, was in the United States for two days in October 2017, returned to Costa Rica, and came back to the U.S. on Feb. 19, 2018. He was arrested in New Jersey one week later and was indicted here on March 9, 2018.

The prosecution began in connection with Layfield having pocketed settlement funds belonging to Josephine Nguyen, who was a client of the then-firm of Layfield & Barrett. She was to receive 60 percent of a $3.9 million settlement of her personal injury claim, amounting to $2.3 million.

A superseding indictment expanded the scope of the prosecution to include tax evasion and fraud for 2016 and 2017.