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Tom Girardi Sentenced to Over Seven Years for Embezzling Client Settlement Funds

Prosecutors described the scheme as a Ponzi-style fraud that siphoned settlement funds to finance luxury expenses

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FILE - Attorney Tom Girardi smiles outside the Los Angeles courthouse on Wednesday, July 9, 2014. A federal judge filed a brief order Tuesday, Jan. 2, 2024, stating that the disgraced Los Angeles celebrity lawyer has been found competent to stand trial on charges that he stole more than $15 million from his clients. (AP Photo/Damian Dovarganes, File)
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Overview

  • U.S. District Judge Josephine Staton ordered Girardi to serve seven years and three months in prison, pay $2.3 million in restitution and a $35,000 fine
  • Girardi must surrender to federal authorities by July 17 to begin his sentence
  • A federal jury convicted him in August on four counts of wire fraud for misappropriating more than $15 million from clients between 2010 and 2020
  • Victims included burn survivors and relatives of the 2018 Lion Air crash, whose settlement payments were diverted to personal and entertainment costs
  • Despite an Alzheimer’s diagnosis, the court found Girardi competent for sentencing and his former law firm Girardi Keese collapsed into bankruptcy proceedings