The website LAMag.com released a very lengthy and detailed piece (have Sutton read it to you if necessary) that has a lot of new information and all of the things we already know in chronological order making it all a whole lot clearer.
I found all of this information on Tom’s second divorce (Erika was third I think) very interesting. It seems very clear and publicly know that Tom Girardi had been stealing client funds, and referral funds from other attorneys for DECADES. Probably since the 1980s.
This Information From Tom Girardi’s Second Divorce Is Eye Opening
Girardi’s second divorce, filed in 1998, stretched on for four years, nearly as long as the marriage itself, thanks largely to Girardi’s stalling tactics. The case file contains more than 10,000 pages and includes snapshots of Girardi’s life at the time. He and Kathy Risner lived in the same 10,000-square-foot Pasadena mansion that Girardi lived in with Jayne.
“If anything, Tom was more extravagant in his choices for my clothing than I,” Risner wrote in a declaration. “He would think nothing of paying as much as $5,000 for a dress for me to wear to one of the many bar functions, charity balls, or client dinners that we regularly attended.” They traveled constantly on their private jets and ate out almost every night at “the finest West Side restaurants.”
A forensic accountant, Alfred Warsavsky, was hired by Risner to dig through Tom Girardi’s finances, and they were a mess: personal expenses charged as business expenses, millions of dollars shifted from account to account without explanation. Worst of all, Warsavsky found that Tom Girardi was dipping into his client trust account, an escrow account for settlements to pass through on the way from defendant to plaintiff. A lawyer can use the money in the account to pay for fees, including his own, but, by law, records must be kept. Withdrawing money from the trust account for personal use is grounds for disbarment and even criminal prosecution.
It you have the time and the inclination, click on the link above for the entire story. Why was nothing done to this Tom Girardi after the second divorce? I get he was buying judges and other influences with victim’s money. But is there no ETHICAL Ethics oversight? It’s a travesty. All of the enablers need to go down with him.