‘Real Housewives’ Trial Explodes: Erica Jayne’s Ex Tom Girardi Used Clients’ Multi-Million Settlements as ‘Personal Piggy Banks’
Prosecutors accused Tom of using clients’ funds as ‘personal piggy banks’.
Aug. 7 2024, Published 4:50 p.m. ET
Erika Jayne's estranged husband Tom Girardi's trial kicked off with wild accusations.
Prosecutors alleged former powerhouse attorney Girardi used his clients' multimillion dollar settlements as his own "personal piggy banks", RadarOnline.com can reveal.
The extent of Tom Girardi's mental impairments were revealed in a court filing.
At a federal courthouse in Los Angeles, Girardi, 85, appeared in a grey suit jacket, khaki pants, blue sweater and tennis shoes. He was deemed competent to stand trial on four counts of wire fraud despite his dementia diagnosis, which his public defender argued made him unable to be beneficial to his defense.
Nonetheless, the trial moved forward and prosecutors laid out their case to jurors on Tuesday.
The 85-year-old, who built a legal firm after fighting a California utility giant – that served as the inspiration for Erin Brockovich – has been charged with four counts of wire fraud. A fifth charge was previously dismissed.
Prosecutors charged Girardi pocketed his clients' settlements for his own personal gain.
Tom was accused of using client funds to pay for his luxury lifestyle with Jayne.
In one instance, jurors heard about a case in which Girardi won a $53 million settlement for client Joe Ruigomez, who was badly injured in a house explosion; however, the Bravo star's ex-husband allegedly told his client the settlement was only $7million.
Assistant federal prosecutor Scott Paetty told jurors the attorney went to Ruigomez "in his darkest hour" and flaunted an old cover story promoting him as the hero of the Erin Brockovich film, while reassured them that he would be Ruigomez's "champion".
Paetty added: "And when $28 million of that settlement came into the law firm’s trust account, he (Girardi) used it to pay off other clients he owed money to and other debts."
The prosecutor said Girardi knowingly "lied to Riugomez" and "stole millions and millions' from him and other clients".
Between 2010 and 2020, Girardi misled his clients and misappropriated their funds in order to fund "private jets, luxury cars, expensive jewelry with his third wife, ex-go-go dancer Jayne, 52, including $20 million to fund her acting career".
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Jayne filed for divorce from Girardi in the wake of his fraud allegations.
Girardi's legal career – and marriage – went up in flames in 2020 when he was accused of stealing millions in settlements for the victims of the 2018 Lion Air plane crash, in which 189 people were killed.
The former powerhouse attorney was accused of using his law firm's trust fund – which was established for settlements to be deposited into – "like a personal piggy bank, drawing money from it whenever he wanted".
In some cases, clients claimed they "never received a penny" while others testified their settlements were less than what Girardi charged in legal fees.
Tom was deemed competent to stand trial despite his dementia diagnosis.
Reality star Jayne and Girarid were married for 21 years. The Real Housewives of Beverly Hills personality filed for divorce shortly after the Lion Air allegations were made public.
Since then the divorce has been delayed due to Girardi's law firm filing for bankruptcy in 2021, citing over $100 million in debts.
Paetty implored jurors to find the defendant guilty of fraud "for cheating his clients out of the money that was rightfully theirs because of the injuries they suffered".
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