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You're watching CNBC On Demand.
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In this episode of American Greed, he's
a powerhouse litigator who eats big
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corporations for lunch.
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Super lawyer Tom Girardi is worth $100
million, but says he's a champion of the
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little guy.
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Tom was.
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one of the most respected trial lawyers
in U .S. legal history.
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He wins billions in settlements for
clients around the globe.
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As a lawyer, sometimes you feel pretty
good.
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Girardi makes his fortune in the
courtroom, but his reputation is all
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He said, I was in that, I'm the Aaron
Brockowitz lawyer, and that's Doc.
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00:00:46,390 --> 00:00:51,650
And whether he's taking on Big Pharma or
Major League Baseball, he's a legal
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legend. They did the wrong thing.
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You've got to make it right.
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Girardi's got the mansion, the cars, the
swagger, and the glamorous real
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housewife of Beverly Hills.
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He said stuff like, forget about it,
baby. That's showmanship.
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But clients claim that this showman is
really a swindler who allegedly siphons
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tens of millions in settlements to fund
a gilded lifestyle.
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It's about a lot of people who have been
victimized.
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Once, twice, three times.
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And his victims trust American Greed to
tell their stories.
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They're ruining lives.
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They're ruining thousands of lives.
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Until this accused conman counselor's
world starts to crumble.
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That's what's been happening the whole
time. The old man went through all the
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money. And Girardi's days of making
headlines are far from over.
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Is it greed?
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Yes. Is it pride?
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Absolutely. Is it ego? Is it prestige?
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It's all of the above.
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But it's not a mistake.
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Tom Girardi's illustrious career as a
personal injury attorney has made him an
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all -American success story.
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The flashy Uber lawyer is a
multimillionaire with a lifestyle most
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dream of.
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It's on display every week, along with
his beautiful, much younger wife, Erica
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Jane, who shares the intimate details of
their marriage on the hit reality
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series, The Real Housewives of Beverly
Hills.
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But on November 3rd, 2020, the press
catches wind of a bombshell.
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Erica's filing for divorce.
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This was wife number three. He'd already
had an armload of mistresses.
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You know, you keep watching to see what
will happen.
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Her soon -to -be ex -husband isn't
nearly as famous as Erica, but Girardi
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flamboyant character in his own right,
at least in the courtroom.
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In the legal world, it is the case about
Tom Girardi.
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In the reality world, it's about Erica
Jane's husband.
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Erica says she wants a divorce because,
she contends, Tom cheats and treats her
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poorly.
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But could there be another reason for
the split?
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Tom Girardi's financial life is
crumbling to pieces, as the public will
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find out.
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17 counts of federal criminal
indictments.
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And a torrent of civil lawsuits will
later claim Tom stole client funds.
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And Erica knew it. We sued under a
federal statute, RICO, which is the
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that you use to go after the mob.
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A collapsing marriage and an avalanche
of legal woes are just the beginning of
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Tom's troubles.
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Teetering on bankruptcy, Girardi risked
losing what, according to Erica, might
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matter most to him.
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His sole identity as a great lawyer.
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In 1964, seven years before his third
wife Erica is even born,
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Girardi graduates from Loyola Marymount
Law School in L .A. He establishes a
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personal injury law practice and scores
early victories, including a big claim.
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Just a few years out of law school, Tom
made a name for himself by being the
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first lawyer in California to win a
medical malpractice judgment of more
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million.
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And he was always an expert at marketing
himself, so he would turn every single
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victory into three more.
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Including a victory that will make him
famous, the so -called Aaron Brockovich
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case.
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The Aaron Brockovich case put him on the
map nationally.
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Before the world knows her as a
character that wins Julia Roberts an
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Best Actress, Erin Brockovich is a real
-world legal clerk.
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She works with her boss, attorney Ed
Mastry, to lead a class -action lawsuit
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against Pacific Gas and Electric for
releasing cancer -causing chemicals into
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groundwater.
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It's called a toxic mass torch case.
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When Massery runs out of money, he turns
to Tom Girardi for help.
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With Girardi on Massery's team, in 1996,
PG &E settles for
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$333 million.
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The attorneys pocket $133 million in
contingency fees alone.
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Aaron Brockfitt was a defining case for
a lot of us, and the movie compelled a
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lot of us to go to law school and fight
for the underdog.
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Girardi name -dropped his A -list
connection to the movie for decades. In
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promotional interviews, he sounds like
he has a starring role.
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Shooting that movie, I was on the set
every day. I got to know Julia Roberts.
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And to this day, we still have the
chance to say hello now and then.
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Except in the film, Tom's not important
enough to score an on -screen knock.
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Writers invent a composite they call
Kurt Potter.
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Aaron, I was just talking about you.
This is our new partner, Kurt Potter.
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be handling Hinkley now.
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Oh, I see what you mean about a secret
weapon.
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Aaron, it's great to meet you. You've
done a fabulous job.
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He immediately latched onto it and said,
that's me.
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So even though they never said Tom
Girardi, he said, I was in that. I'm the
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Aaron Brockovich lawyer, and that's Doc.
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And he realized that that fame got him
an incredible amount of power.
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Powerful lawyer, even better
businessman.
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In glossy advertising, he's Girardi
Keith's best hype man. And in PR
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seizes every opportunity to pitch his
firm's signature calling card.
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And we're interested in doing one thing,
and that's helping the little guy.
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Giving the guy a voice who's been
harmed, who otherwise wouldn't have a
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Girardi thrives on high -profile cases.
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that earn him headlines.
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He even takes on the L .A. Dodgers in
2014.
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Police in Los Angeles arrested a suspect
today in the brutal beating of a San
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Francisco Giants fan outside L .A.'s
Dodger Stadium.
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Beaten so badly that he remains in a
coma in a San Francisco hospital.
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Girardi sues the victim's attackers and
the Dodgers, blaming negligent security
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for his client's trauma.
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Investigative reporter Brandon Lowry
covers the trial and gets a front row
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to the Girardi show.
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When I first met Tom, he was in the
middle of the Brian Stowe case. He was
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representing the fan against the
Dodgers.
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And he does it all with dramatic
panache.
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The Dodgers should be paying the medical
expense for this man and his family
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right now.
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Hey, man, we made a mistake. We're so
sorry. And instead you come in here and
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you deny what the law is.
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You deny you have any ability to keep
the pledge safe.
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People get hurt too bad.
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In and outside the courtroom, Lowry is
impressed.
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He remembered my name the first time I
told it to him. The next day he came up
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to me.
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Brandon, great story.
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He was just a really nice guy.
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Girardi's closing argument is a folksy
masterclass in persuasion. You know
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You're going to do the right thing.
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I know you will.
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Tom Girardi's clients needed a win. He
was the man who was going to solve their
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problems. He was their hero.
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00:09:09,240 --> 00:09:13,440
The jury awards Girardi's clients nearly
$18 million.
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I didn't know who he was. I mentioned
this to one of my colleagues, and he was
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like, oh, yeah, he's kind of a big deal.
You know, he was one of the Aaron
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Brockovich lawyers, and his wife's on
Real Housewives. And I was like, wow,
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guy remembered me. I can only imagine
how clients would have felt being
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like they really mattered to him.
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Six years later, and only days before
Erica Jane files for divorce, Tom will
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give his last known on -camera interview
to personal injury attorney Daniel
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Faruzan. who lands Girardi as a marquee
guest on his Schmoozin' with Faroozan
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podcast.
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Hi, my name is Daniel Faroozan, and
welcome to the first episode of the
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Schmoozin' with Faroozan podcast.
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I went in there thinking to myself, oh,
wonderful, I got a big name for the
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first episode of my podcast.
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That's all I knew, and I was excited to
listen to him and learn.
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Sharing that interview exclusively with
American Greed.
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Perusin learns that Girardi's happy to
talk shop about his Dodgers win.
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Not too long ago, sir, I was listening
live to your closing in the Bryan Stowe
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case. And now here I am sitting across
from you getting to ask you all these
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questions. I can't tell you how excited
I am. I got all the accolades.
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Girardi won.
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Forget about it, baby.
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It was that wonderful, sweet client that
those jurors really liked.
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He says things like, forget about it,
baby.
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And I'm thinking to myself, oh, my God,
I'm in Dick Tracy. What's going on here?
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Do we still speak like that? At the
time, I found that charming because no
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else has ever spoken to me like that.
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But clients say Girardi's charm never
lasts for long.
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Coming up, Tom Girardi plays Erica
Jane's Prince Charming.
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He had so much power and influence and
money that he could take kind of a
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nobody. and make her into a star.
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But who's really funding their fairytale
lifestyle?
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As a hotshot L .A. lawyer, Tom Girardi
cultivates a big -spending, showy
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reputation.
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Since the 1980s, he had a mansion in
Pasadena, and he would
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entertain politicians, he'd entertain
other lawyers, and this goes back long
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before Erica.
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By the late 90s, when he meets 27 -year
-old cocktail waitress Erica Jehoi,
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they're a match made in Hollywood.
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Tom Girardi and Erica are two peas in a
pod. And when they met, it was like a
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stereotype ran into a cliche.
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They marry in 2000, and the one -time
exotic dancer begins her metamorphosis
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Erica Jane, the aspiring singer and
celebrity, bankrolled by her new
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years her senior.
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Author Kathleen Sharp will spend years
investigating Tom Girardi.
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They're very similar, their ambitions
and their public personas.
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She was very clever to pitch her star to
him.
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But at the same time Erica's star is
rising, Tom Girardi is about to take
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another big swing at Pacific Gas and
Electric, the company that made him rich
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and famous.
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They're behind another devastating
disaster.
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And for Girardi, it's a new opportunity
to cash in on tragedy.
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On a warm September evening in 2010, Joe
Rugomez is a teenager at home
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watching a football game with his
girlfriend.
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Suddenly, his entire neighborhood
explodes.
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This theory reeling from an explosion so
powerful, it claimed lives and forever
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charred the landscape here.
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The local gas company, Pacific Gas and
Electric, says a 30 -inch gas line
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00:13:32,760 --> 00:13:33,760
ruptured.
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00:13:35,100 --> 00:13:39,080
With burns covering his body, Joe clings
to life.
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00:13:40,900 --> 00:13:45,000
Amazingly, this is his second appearance
as a victim on American Greed.
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00:13:45,280 --> 00:13:50,700
His first was in season 14, episode 11,
Burned by Greed.
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recounting how he survived the explosion
caused by PG &E's negligence.
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00:14:09,590 --> 00:14:16,450
Joe's girlfriend, Jessica, perishes,
along with seven others
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in San Bruno.
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00:14:21,990 --> 00:14:24,130
Joe, we don't know if he's going to make
it.
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And he's hooked up to a million tubes
and covered in bandages all over.
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You can't recognize him.
201
00:14:34,570 --> 00:14:40,270
Kimberly Archie, a close friend of Joe's
mother, knows many lawyers in her work
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as a youth sports safety advocate.
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00:14:42,470 --> 00:14:45,550
Some of them have high praise for Tom
Girardi.
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00:14:45,870 --> 00:14:50,410
All they ever talked about was Tom
Girardi. Tom Girardi this, we'll take it
205
00:14:50,410 --> 00:14:57,320
Tom. And when it comes to winning
against PG &E, no one has a better
206
00:14:57,880 --> 00:15:03,620
I ran the meeting initially when they
met Tom because this was just a horrific
207
00:15:03,620 --> 00:15:06,060
nightmare for them.
208
00:15:06,500 --> 00:15:12,600
But with a home in ashes and facing a
mountain of medical debt for Joe, the
209
00:15:12,600 --> 00:15:18,160
Gomez family, like so many of Girardi's
clients, are vulnerable, as Joe's sister
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00:15:18,160 --> 00:15:19,800
Jamie recalls.
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00:15:20,460 --> 00:15:26,680
We thought, wow, like, he's an amazing
lawyer. He's so well -known. We had no
212
00:15:26,680 --> 00:15:31,520
experience in that world. Like, we were
a middle -class, blue -collar family.
213
00:15:32,660 --> 00:15:37,400
The Rue Gomez family signs on with
Gerardi Keys, and their celebrity L .A.
214
00:15:37,480 --> 00:15:41,860
lawyer fights for them, suing PG &E for
negligent procedures.
215
00:15:43,600 --> 00:15:45,780
I was in a coma for most of that.
216
00:15:46,170 --> 00:15:48,410
And I woke up and they said, this is our
lawyer.
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00:15:48,630 --> 00:15:51,530
You know, every time I'd talk to him,
he'd whisper me sweet nothings all the
218
00:15:51,530 --> 00:15:55,770
time. You know, talk a good game. It
just seemed logical to trust him.
219
00:15:57,790 --> 00:16:02,890
As their case winds through the court,
Joe's family friend Kimberly starts
220
00:16:02,890 --> 00:16:08,470
working closely with Tom as a litigation
consultant, giving her an up -close
221
00:16:08,470 --> 00:16:10,810
look at Girardi's outrageous spending.
222
00:16:12,360 --> 00:16:19,340
He leases not one, but two private jets
and drives a rotating fleet of luxury
223
00:16:19,340 --> 00:16:20,340
cars.
224
00:16:20,960 --> 00:16:27,740
Tom showers Erica with jewels, including
the piece de resistance, $750 ,000
225
00:16:27,740 --> 00:16:28,800
diamond earrings.
226
00:16:29,920 --> 00:16:34,600
His estimated net worth peaks at $100
million.
227
00:16:35,340 --> 00:16:39,540
Yet, for all his wealth, Archie
notices...
228
00:16:39,760 --> 00:16:41,920
something doesn't quite add up.
229
00:16:42,180 --> 00:16:48,280
I kept thinking, how is he living like a
billionaire on millionaire money? I
230
00:16:48,280 --> 00:16:51,940
never thought he made that kind of money
just on settlement.
231
00:16:52,520 --> 00:16:53,920
She might be right.
232
00:16:54,200 --> 00:16:56,360
She just doesn't know it yet.
233
00:17:04,119 --> 00:17:10,369
Three years into their lawsuit against
PG &E, Tom Girardi has exciting news for
234
00:17:10,369 --> 00:17:11,369
the Rugomez family.
235
00:17:11,770 --> 00:17:14,510
He's won them a multi -million dollar
settlement.
236
00:17:15,710 --> 00:17:21,290
Most is earmarked for Joe, who's already
endured dozens of surgeries and will
237
00:17:21,290 --> 00:17:24,050
require extensive medical care for the
rest of his life.
238
00:17:24,450 --> 00:17:28,430
I didn't have any money at the time.
Everything that me and my family owned
239
00:17:28,430 --> 00:17:29,430
up in smoke, literally.
240
00:17:30,110 --> 00:17:35,630
But Joe's sister, Jamie, says Girardi
isn't explaining the details of their
241
00:17:35,630 --> 00:17:37,750
settlement. We didn't see any paperwork.
242
00:17:38,150 --> 00:17:44,750
And once my mom started pressing him, he
pretty much cut off communication with
243
00:17:44,750 --> 00:17:47,850
her. We had no idea what we were getting
ourselves into.
244
00:17:48,490 --> 00:17:53,590
And when Tom tells the family how much
money they'll receive, instead of
245
00:17:53,590 --> 00:17:56,950
comforted, Jamie recalls feeling judged.
246
00:17:58,190 --> 00:18:03,710
He made me feel like I was being an
ungrateful brat, as if he was expecting
247
00:18:03,710 --> 00:18:09,370
to jump for joy that I got this money,
but I lost everything that was important
248
00:18:09,370 --> 00:18:10,169
to me.
249
00:18:10,170 --> 00:18:14,330
On top of that, Girardi's smarminess
makes her suspicious.
250
00:18:15,070 --> 00:18:20,170
He called everybody, like, oh, baby,
and, like, stuff like that, and he just
251
00:18:20,170 --> 00:18:23,190
tried too hard, and it was phony. He
even called my father baby.
252
00:18:23,390 --> 00:18:24,490
Like, what are you doing?
253
00:18:25,550 --> 00:18:26,550
Coming up.
254
00:18:26,730 --> 00:18:32,890
More families in dire straits depend on
Tom Girardi to be their champion of the
255
00:18:32,890 --> 00:18:33,649
little guy.
256
00:18:33,650 --> 00:18:38,890
We need this money for help. We don't
want this to go by lavishly.
257
00:18:39,370 --> 00:18:43,850
But their lawyer does, and it will lead
to his downfall.
258
00:18:44,190 --> 00:18:46,330
This was not a small criminal operation.
259
00:18:46,630 --> 00:18:50,750
It was large. It was unwieldy. That is
something out of a John Christian novel.
260
00:19:03,050 --> 00:19:08,290
In California, while the Lugomes family
trusts Tom Girardi to deliver millions
261
00:19:08,290 --> 00:19:13,370
in settlement money from the PG &E
explosion lawsuit, halfway across the
262
00:19:13,370 --> 00:19:18,470
country, the Jones family is counting on
him to answer their prayers.
263
00:19:25,310 --> 00:19:29,850
In Linden, Kansas, they're represented
by Tom's firm as...
264
00:19:30,110 --> 00:19:34,730
part of a 2012 lawsuit against the
Johnson & Johnson drug Risperdal.
265
00:19:35,870 --> 00:19:40,870
After taking the drug as a child, Holly
and her husband Michael's son Matthew,
266
00:19:41,070 --> 00:19:47,250
who is autistic, develops gynecomastia,
male swelling of breast tissue.
267
00:19:47,950 --> 00:19:51,610
Insurance won't cover the corrective
operation that he needs.
268
00:19:53,210 --> 00:19:58,130
It broke my heart to see him going
through that.
269
00:19:59,830 --> 00:20:02,410
I couldn't make it better right away.
270
00:20:03,350 --> 00:20:09,810
When Michael dies from lung cancer in
2016, Holly and her children are left
271
00:20:09,810 --> 00:20:12,130
reeling and financially strapped.
272
00:20:12,370 --> 00:20:16,550
Holly suffers brain and physical
injuries, leaving her disabled.
273
00:20:16,970 --> 00:20:21,770
They hope for a miracle settlement for
Matt and a little money to repair their
274
00:20:21,770 --> 00:20:24,430
home, if there's anything left over.
275
00:20:24,850 --> 00:20:26,870
And it's not that we want this money.
276
00:20:27,370 --> 00:20:29,670
It's that a lot of us can't afford this
stuff.
277
00:20:29,930 --> 00:20:32,050
We can't afford mass surgery.
278
00:20:33,230 --> 00:20:39,170
Though Girardi -Keese advertises that we
treat our clients like family, the
279
00:20:39,170 --> 00:20:42,430
Joneses say they receive hardly a word
of correspondence.
280
00:20:43,030 --> 00:20:46,970
We kept getting pushed off and pushed
off and pushed off and pushed off, and
281
00:20:46,970 --> 00:20:47,970
needed to help.
282
00:20:47,990 --> 00:20:54,270
Something just wasn't right in the way
they handled you, the way they treated
283
00:20:54,270 --> 00:20:59,450
you. Finally, after seven years, Girardi
Keys notifies Holly that they've
284
00:20:59,450 --> 00:21:02,710
negotiated a settlement with Risperdal's
manufacturer.
285
00:21:03,230 --> 00:21:08,910
It will allow the Joneses to pay for
Matt's surgery and fix up their home.
286
00:21:08,910 --> 00:21:11,490
amount is modest, just $12 ,000.
287
00:21:11,890 --> 00:21:17,770
And for the Jones family, it's life
-changing. For the Girardis, $12 ,000 is
288
00:21:17,770 --> 00:21:18,770
night out.
289
00:21:22,580 --> 00:21:27,560
Erica's video, Expensive, lays out her
thoughts on money management.
290
00:21:28,880 --> 00:21:34,280
Erica was the perfect mate in that she
loved to spend money just as much as Tom
291
00:21:34,280 --> 00:21:40,120
did, if not more. It was a trophy to him
to say, like, I paid for her music
292
00:21:40,120 --> 00:21:46,500
video. As reality TV royalty, Erica
reportedly tallies more than $14 million
293
00:21:46,500 --> 00:21:48,680
in American Express charges.
294
00:21:49,530 --> 00:21:52,590
But her celebrity seems to pay off for
Tom.
295
00:21:52,870 --> 00:21:57,450
How has the reality television affected
your career? How has it affected the
296
00:21:57,450 --> 00:21:58,570
marketing for your office?
297
00:21:58,870 --> 00:22:00,970
I would be in a hotel in New Orleans.
298
00:22:01,290 --> 00:22:03,190
Twenty people come running up.
299
00:22:04,170 --> 00:22:05,810
Are you Erica's husband?
300
00:22:09,230 --> 00:22:16,070
Erica talked about enlisting a $40 ,000
a month glam squad and goes on eye
301
00:22:16,070 --> 00:22:17,450
-popping spending sprees.
302
00:22:20,970 --> 00:22:25,470
Tom and Erica had money to buy whatever
they wanted. They didn't necessarily
303
00:22:25,470 --> 00:22:27,150
have the most taste.
304
00:22:27,370 --> 00:22:31,270
And I think that's really where the
spirit of greed comes from, people who
305
00:22:31,270 --> 00:22:32,510
have an empty want.
306
00:22:33,310 --> 00:22:38,990
Yet while Tom's living it up with Erica,
his clients are just trying to survive.
307
00:22:40,350 --> 00:22:45,210
He was brilliant at getting the
recovery, getting a payment made by the
308
00:22:45,210 --> 00:22:46,830
defendants in these lawsuits.
309
00:22:47,050 --> 00:22:48,610
He just wasn't very good at it.
310
00:22:48,840 --> 00:22:51,320
allocating those funds where they should
have been paid.
311
00:22:51,560 --> 00:22:54,900
The Rue Gomez family discovers that
firsthand.
312
00:22:55,500 --> 00:23:00,560
They've asked American Greed to keep the
exact amount confidential, but by 2018,
313
00:23:00,900 --> 00:23:05,340
they allege that Girardi pays them only
a small fraction of their multimillion
314
00:23:05,340 --> 00:23:09,940
-dollar settlement, telling Joe he'll
eventually get the rest.
315
00:23:10,280 --> 00:23:13,600
At first, Girardi's rationale sounds
plausible.
316
00:23:14,480 --> 00:23:18,490
You're going to get... Payments every
five years, lump sums every five years,
317
00:23:18,550 --> 00:23:20,610
and then they're going to get annuity
every month.
318
00:23:21,090 --> 00:23:23,830
And I'm like, oh, that makes sense. I'm
young, you know.
319
00:23:24,570 --> 00:23:28,770
Neil Wortlieb is a lawyer and ethics
expert in California.
320
00:23:29,190 --> 00:23:34,030
The client, they don't really have the
access to the information to figure out
321
00:23:34,030 --> 00:23:38,290
what they're entitled to, unless the
lawyer does what they're supposed to do,
322
00:23:38,310 --> 00:23:42,950
which is to tell them precisely what's
been received, account for it basically
323
00:23:42,950 --> 00:23:43,950
to the penny.
324
00:23:44,410 --> 00:23:48,530
and whatever balance is remaining, all
of that is supposed to be allocated to
325
00:23:48,530 --> 00:23:49,530
the clients.
326
00:23:49,710 --> 00:23:55,270
Instead, his clients allege Girardi
evades their pleas to see the actual
327
00:23:55,270 --> 00:23:59,670
paperwork from their settlement. They
claim that he hedges on showing them his
328
00:23:59,670 --> 00:24:02,510
itemized fees, and he's late with
payments.
329
00:24:03,190 --> 00:24:05,510
It's just another excuse, another
excuse.
330
00:24:05,890 --> 00:24:08,730
That's when some red flags started
popping up.
331
00:24:09,190 --> 00:24:11,470
Red flags are just the beginning.
332
00:24:12,560 --> 00:24:16,040
Time would go on, and then finally, if
you press them enough, they'll finally
333
00:24:16,040 --> 00:24:17,040
pay you something.
334
00:24:17,580 --> 00:24:19,380
And then eventually that just stopped.
335
00:24:19,700 --> 00:24:24,680
And back in Kansas, the Jones family
says that Girardi Keys plans to keep
336
00:24:24,680 --> 00:24:28,080
of their tiny $12 ,500 settlement.
337
00:24:28,640 --> 00:24:35,240
They were going to take 40%, and they
were also going to take
338
00:24:35,240 --> 00:24:41,940
$3 ,500 for postage and copies and
filing fees.
339
00:24:42,400 --> 00:24:44,460
I know they did not spend that much.
340
00:24:44,940 --> 00:24:49,500
Holly claims she doesn't get an itemized
bill and pushes back.
341
00:24:50,020 --> 00:24:52,300
Eventually, they settled it for $6 ,000.
342
00:24:53,180 --> 00:24:55,700
Well, they said, okay, we'll pay you in
a month.
343
00:24:55,940 --> 00:24:56,940
Month goes by.
344
00:24:57,720 --> 00:24:59,280
Nothing happened.
345
00:24:59,860 --> 00:25:03,240
We kept calling them and calling them
and calling them, and they would not
346
00:25:03,240 --> 00:25:04,240
respond to us.
347
00:25:05,260 --> 00:25:11,020
Up next, when an Indonesian air disaster
leaves widows and orphans in its wake.
348
00:25:11,500 --> 00:25:13,240
Tom Girardi is on the scene.
349
00:25:13,520 --> 00:25:16,880
Past clients warn, check your pockets.
350
00:25:17,380 --> 00:25:24,160
If you're unlucky enough to touch Tom
Girardi, he probably had your
351
00:25:24,160 --> 00:25:25,160
wallet.
352
00:25:40,360 --> 00:25:46,880
By 2018, Chicago consumer law attorney
Jay Edelson has a chance to collaborate
353
00:25:46,880 --> 00:25:53,560
as a co -counsel with the man who has
helped inspire his career, Tom Girardi.
354
00:25:54,340 --> 00:26:00,460
But Edelson is about to find new truth
in an old saying, never meet your
355
00:26:00,660 --> 00:26:02,360
you'll only disappoint.
356
00:26:02,780 --> 00:26:04,360
He operated like a mob boss.
357
00:26:04,780 --> 00:26:08,040
You know, what you see in The Sopranos,
where they're at the restaurant all day,
358
00:26:08,120 --> 00:26:10,520
and if you want a meeting with them,
you've got to come to the restaurant.
359
00:26:10,800 --> 00:26:13,280
It wasn't like any other attorney I'd
ever met in my life.
360
00:26:14,000 --> 00:26:19,340
And talking about the opioids case they
might work on, in Jay Edelson's opinion,
361
00:26:19,600 --> 00:26:22,340
Tom is shockingly charmless.
362
00:26:22,860 --> 00:26:25,340
Within 30 seconds, you realize he's a
horrible person.
363
00:26:25,640 --> 00:26:26,900
And it was clear he was foolish.
364
00:26:27,260 --> 00:26:29,020
It was just clear from the very
beginning.
365
00:26:29,240 --> 00:26:30,840
He didn't know anything about the case.
366
00:26:31,230 --> 00:26:34,350
He had no strategy other than just to
wield his influence.
367
00:26:34,830 --> 00:26:36,350
It was not a good match.
368
00:26:36,870 --> 00:26:41,850
But against his better judgment, Edelton
will give Girardi a second chance.
369
00:26:47,980 --> 00:26:52,060
None of that growing air disaster
mystery, a Boeing passenger plane, the
370
00:26:52,060 --> 00:26:56,620
company's most recent design, suddenly
plunging into the sea, likely killing
371
00:26:56,620 --> 00:27:01,220
189 people on board. And the question
is, what caused a brand new plane to go
372
00:27:01,220 --> 00:27:02,280
down in clear skies?
373
00:27:02,680 --> 00:27:09,560
When a Boeing 737 MAX owned by Lion Air
crashes in Indonesia, Gerardi
374
00:27:09,560 --> 00:27:15,000
Keese swoops in to represent a dozen
grieving family members, most of them
375
00:27:15,000 --> 00:27:16,460
widows and orphans.
376
00:27:16,940 --> 00:27:21,040
in a lawsuit against Chicago -based
Boeing and others.
377
00:27:21,440 --> 00:27:26,940
A few months later, we got a call from
Tom Girardi's firm saying, we're going
378
00:27:26,940 --> 00:27:29,760
file the case in Chicago and we'd like
you to help out.
379
00:27:30,600 --> 00:27:35,900
When Edelson confirms that Girardi won't
be directly involved with the legwork,
380
00:27:36,060 --> 00:27:37,320
he signs on.
381
00:27:38,260 --> 00:27:42,180
Both firms agree to a 50 -50 fee split.
382
00:27:42,720 --> 00:27:45,100
And in February of 2020,
383
00:27:45,800 --> 00:27:49,720
Girardi and Edelson celebrate a multi
-million dollar settlement for their
384
00:27:49,720 --> 00:27:55,220
clients. Girardi Peace is responsible
for promptly paying the families and
385
00:27:55,220 --> 00:27:56,900
cutting co -counts of their share.
386
00:27:57,340 --> 00:28:03,760
But as a federal judge will later find,
by that September, Edelson's firm hasn't
387
00:28:03,760 --> 00:28:04,840
seen a dime.
388
00:28:05,580 --> 00:28:10,040
We were calling every week, trying to
get more information, and we kept
389
00:28:10,040 --> 00:28:11,040
stalled.
390
00:28:11,360 --> 00:28:14,080
The Rue Gomez family knows the feeling.
391
00:28:14,830 --> 00:28:20,270
After years of runaround, they've
started sleuthing into Girardi's past
392
00:28:20,270 --> 00:28:24,710
discovered a laundry list of complaints
against him they find online.
393
00:28:26,230 --> 00:28:29,370
They tell their friend, Kimberly Archie,
what they found.
394
00:28:31,410 --> 00:28:37,330
As a host of civil lawsuits will later
allege, Tom Girardi seems to have been
395
00:28:37,330 --> 00:28:41,910
regularly transferring client
settlements into his own bank accounts
396
00:28:41,910 --> 00:28:43,630
his obscene spending.
397
00:28:44,540 --> 00:28:47,880
When money comes in as client money, you
have to put it in a separate account.
398
00:28:48,040 --> 00:28:49,500
It is sacrosanct.
399
00:28:50,160 --> 00:28:55,280
Client funds are supposed to be kept in
a trust account that's registered and
400
00:28:55,280 --> 00:28:57,380
regulated by the California State Bar.
401
00:28:59,320 --> 00:29:03,400
Lawyers are also bound to follow
specific payment procedures.
402
00:29:04,920 --> 00:29:09,780
Let's say it's $100 ,000 in the trust
account, and I have a 40 % contingency
403
00:29:09,780 --> 00:29:13,880
on that. So if I get my client $100
,000, I will take the $40 ,000.
404
00:29:14,300 --> 00:29:18,420
Move it out of the trust account, put it
in my operating account before I ever
405
00:29:18,420 --> 00:29:20,860
touch a penny or a nickel of that money.
Why?
406
00:29:21,120 --> 00:29:23,240
While it's in your trust account, it's
not your money.
407
00:29:23,700 --> 00:29:25,340
That belongs to your clients.
408
00:29:26,360 --> 00:29:30,120
Bankruptcy trustees will later claim,
not if you're Tom Girardi.
409
00:29:31,300 --> 00:29:36,880
He took the funds for his own use, his
own personal expenses, for gifts to his
410
00:29:36,880 --> 00:29:38,240
wife, whatever it might have been.
411
00:29:38,700 --> 00:29:41,660
It's called commingling client funds.
412
00:29:42,890 --> 00:29:46,910
The amount of money that was involved
here became very attractive.
413
00:29:47,290 --> 00:29:52,630
Perhaps he saw those funds and thought,
I've earned it, I deserve it, I want it.
414
00:29:53,170 --> 00:29:58,690
Co -mingling funds is the fast track to
getting disbarred, or it was supposed to
415
00:29:58,690 --> 00:30:01,390
be the fast track of getting disbarred.
416
00:30:01,930 --> 00:30:07,430
Instead, the California State Bar
inducts Girardi into the Trial Lawyer
417
00:30:07,430 --> 00:30:08,430
Fame.
418
00:30:08,530 --> 00:30:12,530
On the surface, this is about a
celebrity couple, but...
419
00:30:12,810 --> 00:30:16,570
What it's really about, it's about a lot
of people who have been victimized
420
00:30:16,570 --> 00:30:19,530
once, twice, three times.
421
00:30:20,030 --> 00:30:23,170
The Rue Gomez family knows that feeling
as well.
422
00:30:24,030 --> 00:30:29,030
It really is a slap in the face because
we'll just sit there watching TV and be
423
00:30:29,030 --> 00:30:31,390
like, oh, that's what our money's being
spent on.
424
00:30:31,730 --> 00:30:35,930
Oh, that's what all the other victims'
money is being spent on. Oh, that's what
425
00:30:35,930 --> 00:30:36,930
you're doing with it.
426
00:30:37,010 --> 00:30:40,390
Joe Rue Gomez copes with constant daily
pain.
427
00:30:41,120 --> 00:30:43,600
But Girardi seems untouchable.
428
00:30:45,100 --> 00:30:47,240
Nobody's looking at any of this stuff.
429
00:30:47,480 --> 00:30:49,380
How could he have done it? Nobody knew.
430
00:30:50,540 --> 00:30:57,120
Up next, Girardi has seemingly perfected
hiding dirty little secrets in plain
431
00:30:57,120 --> 00:30:58,120
sight.
432
00:30:58,720 --> 00:31:04,940
Tom Girardi was not a work in progress.
He was already a made man in the most
433
00:31:04,940 --> 00:31:06,340
corrupt way.
434
00:31:20,170 --> 00:31:26,690
In 2019, Tom Girardi is regarded as one
of the most successful litigators in
435
00:31:26,690 --> 00:31:33,350
America. Author Kathleen Sharp has known
better since the 1990s. Tom was an
436
00:31:33,350 --> 00:31:34,630
operator way back when.
437
00:31:34,870 --> 00:31:40,670
Way back in 2000, she writes a searing
expose on the Erin Brockovich case.
438
00:31:41,250 --> 00:31:46,590
Victims from that early PG &E case
accused Tom of the same lying and
439
00:31:46,590 --> 00:31:47,590
embezzlement racket.
440
00:31:48,140 --> 00:31:51,940
that he's been accused of repeating with
scores of complaining clients after
441
00:31:51,940 --> 00:31:57,340
them. Here were these poor people who
had suffered for years and years, and
442
00:31:57,340 --> 00:32:02,460
trusted Girardi to make them, if not
whole again, then at least to get them
443
00:32:02,460 --> 00:32:04,740
money so they could take care of their
medical problems.
444
00:32:05,020 --> 00:32:06,700
And that never really happened.
445
00:32:07,280 --> 00:32:08,360
But there's more.
446
00:32:09,020 --> 00:32:13,540
What I found was sort of a goldmine,
which is the arbitration system.
447
00:32:14,600 --> 00:32:19,800
Voluntary arbitration allows Girardi to
steer some of his famous cases,
448
00:32:19,820 --> 00:32:25,940
including the Erin Brockovich case, into
negotiation instead of a full -blown
449
00:32:25,940 --> 00:32:27,300
trial before a jury.
450
00:32:28,380 --> 00:32:32,040
Private retired judges administer those
cases.
451
00:32:32,540 --> 00:32:37,600
They were earning hundreds of millions
of dollars, paying judges two or three
452
00:32:37,600 --> 00:32:40,400
times what they had earned in the public
sector.
453
00:32:41,070 --> 00:32:44,470
Perhaps surprisingly, this is perfectly
legal.
454
00:32:45,190 --> 00:32:50,530
It wasn't just arbitration. It was him
making friends with some of these
455
00:32:50,530 --> 00:32:53,270
judges. But Tom took it a little bit
farther.
456
00:32:54,750 --> 00:32:57,750
Girardi wines and dines judges in L .A.
457
00:32:59,270 --> 00:33:04,610
He flies them to baseball games in his
Gulfstream jet and even charters
458
00:33:04,610 --> 00:33:10,260
Mediterranean cruises that his judge
pals later called educational seminars.
459
00:33:11,680 --> 00:33:17,720
There would be butlered waiters with
silver trays full of champagne or bikini
460
00:33:17,720 --> 00:33:21,120
-clad ladies frolicking on the sun
-drenched decks.
461
00:33:21,360 --> 00:33:24,320
It gave decadence a bad name.
462
00:33:25,080 --> 00:33:31,880
With arbitration, results are veiled in
secrecy. So Girardi's payouts
463
00:33:31,880 --> 00:33:32,880
escape scrutiny.
464
00:33:33,220 --> 00:33:38,760
And in this good old boy culture,
Girardi's official record with the
465
00:33:38,760 --> 00:33:45,240
bar remains spotless, which is
remarkable because zooming ahead to
466
00:33:45,240 --> 00:33:51,400
2022, the bar will disclose a jaw
-dropping number of complaints and
467
00:33:51,800 --> 00:33:57,920
more than 200, dating all the way back
to the early 1980s.
468
00:33:58,320 --> 00:34:04,890
They taught me a thing or two about not
only how to fleece, your
469
00:34:04,890 --> 00:34:06,650
clients, but how to get away with it.
470
00:34:07,030 --> 00:34:13,510
Girardi quietly settles some of the
cases in a Ponzi -like way, paying off
471
00:34:13,510 --> 00:34:14,770
debts with new money.
472
00:34:15,570 --> 00:34:20,750
Other times, court findings show he
simply runs out the statute of
473
00:34:21,949 --> 00:34:26,270
And Girardi thumbs his nose at a mandate
from the California bar.
474
00:34:26,929 --> 00:34:32,170
There were 37 cases where he was
required to report himself.
475
00:34:32,389 --> 00:34:33,790
The bar trusted him.
476
00:34:34,170 --> 00:34:39,670
to report his own misconduct, and he
just didn't. Basically, if you're
477
00:34:39,670 --> 00:34:45,150
enough to have touched Tom Girardi, he
probably had your wallet.
478
00:34:47,489 --> 00:34:54,389
But by 2019, the Rue Gomez family has
had enough of Tom Girardi. They not only
479
00:34:54,389 --> 00:34:56,590
fire him, they sue him.
480
00:34:57,230 --> 00:34:59,610
The day that Kathy's...
481
00:34:59,980 --> 00:35:04,060
Family sued Tom was the beginning of the
end. That unraveled everything.
482
00:35:04,500 --> 00:35:09,700
The judge issues Erica Jane Girardi two
subpoenas, asking for shared financial
483
00:35:09,700 --> 00:35:16,620
records. That's what led to Erica being
served and finding out
484
00:35:16,620 --> 00:35:19,460
that really Tom has no money.
485
00:35:20,000 --> 00:35:24,980
Though Erica has publicly blamed Tom's
alleged cheating as her reason for
486
00:35:24,980 --> 00:35:28,360
divorcing him, Jay Edelson doesn't buy
it.
487
00:35:29,230 --> 00:35:32,430
It didn't make sense until Erica filed
for divorce.
488
00:35:32,850 --> 00:35:37,230
Then we said, that's what's been
happening all the time. The old man went
489
00:35:37,230 --> 00:35:38,230
through all the money.
490
00:35:40,270 --> 00:35:41,270
Up next.
491
00:35:41,530 --> 00:35:48,250
At that point, he was known to be a
crook. His whole reputation ended like
492
00:36:04,710 --> 00:36:09,510
A lawsuit against Tom Girardi, brought
by his former clients, the Rue Gomez
493
00:36:09,510 --> 00:36:11,830
family, has ruptured his reputation.
494
00:36:12,110 --> 00:36:14,550
And now all hell is breaking loose.
495
00:36:15,010 --> 00:36:18,830
When they brought their suit and started
having success, the lenders started
496
00:36:18,830 --> 00:36:19,828
cutting him off.
497
00:36:19,830 --> 00:36:24,890
He was relying on a lot of outside money
to keep it going. And that stopped
498
00:36:24,890 --> 00:36:25,890
that.
499
00:36:26,290 --> 00:36:29,810
Girardi is dangerously deep in debt,
baby.
500
00:36:30,400 --> 00:36:34,040
as he reveals in a video deposition for
the Rugomez case.
501
00:36:34,800 --> 00:36:40,760
At one point, I had about $80 million or
502
00:36:40,760 --> 00:36:43,760
$50 million in cash.
503
00:36:44,660 --> 00:36:45,660
That's all gone.
504
00:36:46,280 --> 00:36:52,300
I also had a stock portfolio of about
$50 million, and that's all gone.
505
00:36:58,090 --> 00:37:04,210
In Chicago, Jay Edelson is deeply
worried about his clients and is
506
00:37:04,210 --> 00:37:07,590
discover that they've received barely
half of their settlement money.
507
00:37:07,870 --> 00:37:12,070
And we now know the clients were saying
to them, we're screaming, where's our
508
00:37:12,070 --> 00:37:13,070
money?
509
00:37:16,310 --> 00:37:18,810
On December 2nd, 2020.
510
00:37:19,520 --> 00:37:25,220
Jay Edelson files a 30 -page, five
-count civil complaint against Tom,
511
00:37:25,440 --> 00:37:27,500
and other Girardi Peace Associates.
512
00:37:28,140 --> 00:37:33,060
In my view, it is a crime family. That's
what it is. That is how they operate
513
00:37:33,060 --> 00:37:39,480
it. Just two weeks later, on December
14th, Judge Thomas Durkin calls
514
00:37:39,480 --> 00:37:45,520
behavior unconscionable and demands $2
million to be paid to the Lion Air
515
00:37:45,520 --> 00:37:48,140
families. But Tom Girardi...
516
00:37:48,520 --> 00:37:49,520
is broke.
517
00:37:49,540 --> 00:37:51,480
The court issued the judgment.
518
00:37:51,720 --> 00:37:52,960
They froze his assets.
519
00:37:53,220 --> 00:37:55,000
A criminal investigation started.
520
00:37:55,340 --> 00:37:56,960
He then was forced into bankruptcy.
521
00:37:57,240 --> 00:38:03,760
And at that point, he was known to be a
crook. His whole reputation ended like
522
00:38:03,760 --> 00:38:04,760
that, overnight.
523
00:38:05,420 --> 00:38:10,480
Over the next two years, new civil
lawsuits filed by Jay Edelson pour in,
524
00:38:10,580 --> 00:38:16,900
alleging Tom embezzled funds And Erica
helped him hide more than $20 million in
525
00:38:16,900 --> 00:38:20,640
assets through loans to her company, EJ
Global.
526
00:38:21,020 --> 00:38:26,560
We sued under a federal statute, RICO,
which is the statute that you use to go
527
00:38:26,560 --> 00:38:31,680
after the mob. We know that she knew
that the money had run out at a time
528
00:38:31,680 --> 00:38:32,680
she was pretending otherwise.
529
00:38:32,900 --> 00:38:36,300
That's why we claim she was the front
woman of Enterprise.
530
00:38:37,290 --> 00:38:42,610
In a statement to American Greed,
Erica's attorney vocally denies all the
531
00:38:42,610 --> 00:38:47,370
lawsuit's claims against her, writing
that they are disappointed with the
532
00:38:47,370 --> 00:38:50,810
on Erica, which has been used as a
distraction tactic.
533
00:38:51,470 --> 00:38:57,930
She had no knowledge of and did not
participate in any misconduct, and she
534
00:38:57,930 --> 00:39:01,270
turned over her earnings to her husband
and his law firm.
535
00:39:01,660 --> 00:39:08,040
But Erica doesn't turn over those
infamous $750 ,000 earrings from Tom
536
00:39:08,040 --> 00:39:11,000
court order demands she submit them for
auction.
537
00:39:11,460 --> 00:39:14,280
I'm angry. I'm upset.
538
00:39:14,520 --> 00:39:19,480
Here you are flashing all this stuff
off, and that shouldn't be your stuff.
539
00:39:19,760 --> 00:39:24,980
All of that should be gone. All of that
should be money towards the people who
540
00:39:24,980 --> 00:39:25,980
need it.
541
00:39:26,360 --> 00:39:29,420
Auctioneers sell them for $312 ,000.
542
00:39:30,230 --> 00:39:35,390
After months in foreclosure, Tom's
opulent Pasadena mansion sells for $8
543
00:39:35,390 --> 00:39:36,390
million.
544
00:39:36,950 --> 00:39:41,910
The expensive treasures left inside
fetch less than a half a million.
545
00:39:42,410 --> 00:39:47,990
While the Girardi's divorce languishes
in limbo, Tom lives in a memory care
546
00:39:47,990 --> 00:39:51,950
facility, reportedly due to advancing
Alzheimer's disease.
547
00:39:52,960 --> 00:39:56,800
Eighteen months after suspending
Girardi's law license due to his
548
00:39:56,800 --> 00:40:02,380
cognitive decline, the California State
Bar permanently disbars him, later
549
00:40:02,380 --> 00:40:08,000
writing that Girardi caused irreparable
harm to hundreds of his clients.
550
00:40:08,820 --> 00:40:14,340
Tom does not represent all lawyers. The
vast majority of lawyers I know get up
551
00:40:14,340 --> 00:40:16,960
in the morning and do good work on
behalf of their clients.
552
00:40:17,320 --> 00:40:21,440
Tom Girardi's attorney responded to
American Greed with...
553
00:40:21,900 --> 00:40:22,900
No comment.
554
00:40:23,920 --> 00:40:28,720
And though at least one court has found
no evidence that Erica participated in
555
00:40:28,720 --> 00:40:34,060
any wrongdoing, in a suit brought by
Girardi's former colleagues, she and Tom
556
00:40:34,060 --> 00:40:38,680
still face a slew of civil cases,
including Edelson's.
557
00:40:38,920 --> 00:40:44,240
Whatever role she may have played in
this pales in comparison to the roles
558
00:40:44,240 --> 00:40:48,880
played by numerous people whose names we
don't know.
559
00:40:49,670 --> 00:40:54,170
Tom would never have gotten as far as he
did without all of these other people
560
00:40:54,170 --> 00:40:57,410
and enablers, the other attorneys, the
partners.
561
00:40:58,250 --> 00:41:02,950
Every time you pull a thread, it kind of
goes in 15 different directions.
562
00:41:03,790 --> 00:41:08,070
That's the difficulty in this case, that
it really was a sprawling criminal
563
00:41:08,070 --> 00:41:09,450
conspiracy for decades.
564
00:41:11,030 --> 00:41:17,050
Girardi's estimated debt is at least
$100 million, with another $700 million
565
00:41:17,050 --> 00:41:18,590
lawsuit claims against him.
566
00:41:19,880 --> 00:41:23,080
The Jones family has launched a GoFundMe
campaign.
567
00:41:23,500 --> 00:41:27,280
And Holly wonders what justice might
look like for the Girardis.
568
00:41:27,880 --> 00:41:33,700
This may sound harsh, but I want them to
live like we have to live. And I want
569
00:41:33,700 --> 00:41:39,420
justice for all the clients who have
been stolen from.
570
00:41:39,820 --> 00:41:44,300
Jamie Rue Gomez, whose family is still
fighting to secure the rest of Joe's
571
00:41:44,300 --> 00:41:46,580
settlement, has another thought.
572
00:41:47,130 --> 00:41:51,050
I don't care how old he is. No one
should be above the law. He should be in
573
00:41:51,050 --> 00:41:52,650
prison. That's where I want him.
574
00:41:52,890 --> 00:41:54,950
And that could be a possibility.
575
00:41:56,170 --> 00:42:02,330
In November 2022, federal agents in
Baltimore arrest Tom Girardi's former
576
00:42:02,510 --> 00:42:05,610
Chris Kamen, on criminal charges for
wire fraud.
577
00:42:06,010 --> 00:42:11,310
Though they declined to comment, FBI and
IRS agents are reportedly pursuing
578
00:42:11,310 --> 00:42:14,990
investigations against Girardi and his
associates.
579
00:42:15,840 --> 00:42:21,740
Would it be a happy ending to see an
oxygenarian in prison after he's already
580
00:42:21,740 --> 00:42:26,340
harmed everybody? The happiest ending we
could hope for is that people start
581
00:42:26,340 --> 00:42:31,260
looking at the system and changing the
system to prevent this from happening to
582
00:42:31,260 --> 00:42:35,460
other people. There's going to be
another Tom Girardi, and probably doing
583
00:42:35,460 --> 00:42:36,460
right now.
51886
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