In a dramatic turn of events, disgraced lawyer Tom Girardi is still in debt to a client to the tune of $11 million, over a decade after a legal settlement was reached.
The federal court in Los Angeles was presented with this revelation on Wednesday. The case revolves around Joe Ruigomez, who, along with his family, hired Girardi to take on California utility giant PG&E after a devastating gas explosion in 2010.
Ruigomez, now 33, suffered severe injuries in the explosion, which also claimed the life of his girlfriend. The explosion destroyed his home in San Bruno, CA, and left him in a coma for two months.
In 2013, Girardi and PG&E reached a settlement where Ruigomez was to receive $5 million plus an annuity. However, despite Girardi’s promises to send the full settlement agreement, Ruigomez never received it.
At 85, Girardi, who was once a high-profile attorney and the estranged husband of Erika Jayne from *Real Housewives of Beverly Hills*, faces serious charges.
He is accused of wire fraud, allegedly embezzling $15 million in settlement funds meant for clients. Girardi, who has pleaded not guilty, saw his illustrious career crumble in 2020 when allegations surfaced that he had stolen millions from victims of the 2018 Lion Air crash.
Federal prosecutors claim Girardi used misappropriated funds to fuel a lavish lifestyle, including private jets and luxury cars. His defense, however, points the finger at Christopher Kamon, the chief executive of Girardi’s firm, who allegedly embezzled around $50 million.
Kamon is also facing separate wire fraud charges and is accused of misappropriating $10 million from Girardi’s now-bankrupt law firm.
Ruigomez’s Experience
In court, Ruigomez recounted his trust in Girardi, which led him to delay pressing for the settlement details.
Despite Girardi’s assurances and claims of his extensive experience, Ruigomez was repeatedly told that the payment was delayed due to procedural issues.
Even after receiving a partial payment of $666,000, Ruigomez had to hire a financial adviser and eventually took legal action to claim the remaining $12 million. To date, Girardi has only paid a fraction of what he owes.
Additional Complaints
Another former client, Judy Selberg, shared her own frustrations in court. She hired Girardi for an unlawful death lawsuit after her husband was killed in a boating accident in 2018.
Although a settlement of $500,000 was reached, Girardi’s firm withheld the funds, and Selberg only received a portion of the settlement after hiring another lawyer.
The Road Ahead
The trial continues to unfold, shedding light on the tangled web of deceit and financial mismanagement that has marred Tom Girardi’s once-respected legal career.
As the courtroom drama continues, many are left questioning how such a prominent attorney could fall so far from grace.