The troubles of a Federal Bureau of Investigation (FBI) director in Los Angeles who recused himself from investigating attorney Tom Girardi may just be starting, according to a San Diego attorney.
Girardi, 83, is accused of law violations, ethics rules violations, and acts of moral turpitude for allegedly robbing clients of millions of dollars in large settlement cases, while FBI assistant director Donald Alway co-owns a home in Monterey with his elderly mother that was partially paid for by Girardi in 1985.
“If he was involved in Tom Girardi’s embezzlement scheme or other illegal and unethical activities, he could be implicated," said Cayce Lynch, administrative partner for Tyson & Mendes about Alway who began his current position in the LA division of the FBI on Aug. 29.
Lynch was responding to news that Alway withdrew himself from investigating Girardi whose involuntary bankruptcy debt is estimated at some $517 million.
Prior to being named assistant director in charge of the Los Angeles Field Office by national FBI director Christopher Wray, Alway served as the assistant director of the FBI's Weapons of Mass Destruction Directorate in Washington, D.C. He was a deputy sheriff in Los Angeles County before joining the FBI, according to an agency press release.
“The FBI agent being a part owner of the home creates an appearance of impropriety,” Lynch said.
The Los Angeles Times reported that real estate companies estimate the Alway home is worth close to $3 million but Cayce argues the possibility of creditors pursuing the Alway property for payment cannot be determined just yet. Records from Girardi's divorce proceedings with Erika Jayne show that the disgraced attorney paid some $131,000 towards the mortgage over five years.
As reported in the Los Angeles Times, Alway's mother is an ex-girlfriend and former Girardi legal secretary. Jayne, a Real Housewives of Beverly Hills celebrity who initiated a divorce from Girardi in 2020, is being implicated in her estranged husband's bankruptcy proceedings.
“The extent, duration, and length of the relationship between the owners of the home and Tom Girardi are not clear,” Lynch told the Southern California Record.
The Alway home was placed in the name of another lawyer at Girardi’s law firm, Richard Crane, according to a lawsuit Girardi filed against Crane.
“This could indicate several things,” Lynch said. “It could mean Tom Girardi was attempting to hide financial assets, was contributing to the house purchase in hopes of receiving something in return, or that he contributed the money as a gift.”
Girardi, who is currently under court-appointed guardianship, was once known for securing the highest medical malpractice judgment statewide as a recent law school graduate in the 1960s.
Girardi & Keese Chief Financial Officer Chris Kamon was arrested earlier in November and charged with fraud but the fact that Girardi is under court supervision could prevent him from facing the ultimate consequences of his alleged actions.
“If Tom Girardi is charged with a crime and an arrest warrant is issued for him, the court may terminate the guardianship,” Lynch added. “It is unlikely a court-appointed guardian would be arrested instead of Girardi unless the court-appointed guardian is found guilty of personally committing a crime.”