Tom Girardi, the estranged husband of Real Housewives of Beverly Hills star Erika Jayne, has been sentenced to seven years in prison after carrying out a 10-year-long Ponzi-like scheme that stole millions of dollars from his legal clients.
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According to a press release issued by the IRS, Girardi was sentenced to pay a $35,000 fine and $2,310,247 in restitution in addition to his seven-year sentence. United States District Judge Josephine L. Staton ordered Girardi to surrender to federal authorities “no later than July 17.”
Back in August 2024, a jury found Tom Girardi guilty of four counts of wire fraud.
Ponzi Scheme
According to the release, Girardi used his now-defunct Los Angeles law firm, Girardi Keese, to misappropriate and embezzle millions of dollars from client trust accounts. Reportedly, Girardi would steal millions of client settlement funds and then fail to pay them to his clients. He carried out this scheme from 2010 to 2020.
“Girardi operated Girardi Keese like a Ponzi scheme by providing a litany of lies for failure to pay clients,” the IRS said. He then directed his employees to make incremental payments of the new settlement funds to his clients. These were clients who had been previously defrauded.
Girardi tried to appease his defrauded clients by claiming that certain requirements had to be met. Only then would Girardi Keese be able to pay the settlement proceeds.
“These bogus requirements included addressing supposed tax obligations, settling bankruptcy claims, obtaining supposedly necessary authorizations from judges, and satisfying other debts,” the IRS added.
Luxury Life
The millions of dollars stolen by Girardi were used to purchase jewelry, luxury cars, and exclusive golf and social clubs. He even used the money to pay the expenses of EJ Global. EJ Global is the entertainment company formed by his estranged wife, Erika Jayne.
In 2020, Girardi Keese was forced into involuntary bankruptcy caused by the legal problems it faced. Tom Girardi was disbarred by the State Bar of California in July 2022.
“This self-proclaimed ‘champion of justice’ was nothing more than a thief and a liar who conned his vulnerable clients out of the millions of dollars,” United States Attorney Bill Essayli said. “My office will vigorously prosecute corrupt lawyers and those who assist them in criminal activities.”
Giradi’s co-defendant, Christopher Kazuo Kamon, was sentenced to 121 months in prison. He was ordered to pay $8,903,324 in restitution on April 11.
According to PEOPLE, Girardi and his estranged wife, Erika Jayne, have been in divorce proceedings for the past five years. Jayne gained recognition for her role in the reality show The Real Housewives of Beverly Hills.