A former Los Angeles plaintiff attorney whose involvement in a groundwater-contamination lawsuit in the 1990s inspired the movie “Erin Brockovich” has been found guilty of embezzling tens of millions of dollars from his clients.
Personal-injury attorney Thomas Girardi, who was disbarred by the State Bar two years ago, was found guilty by a federal court jury in Los Angeles on Aug. 27 after a 13-day trial, according to the criminal investigative arm of the U.S. Internal Revenue Service and the verdict form filed in the Central District of California.
For years, Girardi has been misappropriating and embezzling millions of dollars from client trust funds at the now defunct Girardi Keese law firm, according to IRS Criminal Investigation (CI). Many of the clients who were financially victimized had suffered serious personal injuries and were awaiting settlement proceeds.
“Girardi diverted tens of millions of dollars from his law firm’s operating account to pay illegitimate expenses, including more than $25 million to pay the expenses of EJ Global, a company formed by his wife related to her entertainment career, as well as spent millions of dollars of Girardi Keese funds on private jet travel, jewelry, luxury cars, and exclusive golf and social clubs,” prosecutors said in a news release.
Jurors convicted Girardi, 85, who lived in Seal Beach, of four counts of wire fraud. He will face a maximum sentence of 20 years per count in federal prison.
“Tom Girardi built celebrity status and lured in victims by falsely portraying himself as a ‘Champion of Justice,’” U.S. Attorney Martin Estrada said in a prepared statement. “In reality, he was a Robin-Hood-in-reverse, stealing from the needy to support a lavish, Hollywood lifestyle. (The Aug. 27) verdict shows that the game is up – we can all now see this defendant for what he was and the victims he callously betrayed.”
Girardi’s scheme played out from October 2010 to late 2020, during which he lied and provided excuses for delaying the payment of client proceeds, prosecutors said. The excuses ranged from alleged tax obligations to attaining needed judicial authorizations, they said.
The investigation of Girardi, whose firm was forced into bankruptcy in 2020, led at least initially to a wider probe of associates and attorneys. A co-defendant, Christopher Kazuo Kamon, 50, formerly of Encino, is a former CEO at Girardi Keese who is awaiting trial next on charges of abetting Girardi’s activities to defraud clients, according to IRS CI.
The Southern California Record queried IRS CI about whether four other attorneys were being investigated as part of the Girardi probe.
“One of our special agents testified during Mr. Girardi’s trial that the four individuals you reference – Robert Finnerty, Christopher Aumais, Keith Griffin and David Lira – received target letters,” Scott Villiard, spokesman for IRS Criminal Investigation’s Los Angeles office, said in an email. “However, we cannot comment on whether any of those target letters are still active or if there is an ongoing investigation into these people or others affiliated with the Girardi Keese law firm.”
The State Bar of California’s website indicates that the legal licenses of Finnerty and Aumais remain active, but the State Bar has filed disciplinary charges against Griffin and Lira over issues related to the misappropriation of client funds.
In addition, Lira has been charged with a felony in the Northern District of Illinois, and he has been designated ineligible to practice in that jurisdiction, according to State Bar records. Lira’s law practice has been under restrictions since February, the Bar reported.