Tom Girardi: The Rise And Fall Of A Once-Powerful Lawyer

What Happened to Tom Girardi's Net Worth?

Tom Girardi, once a powerhouse attorney in California, now finds himself with a net worth of just $100 thousand. Known for being the ex-husband of "Real Housewives" star Erika Jayne, Girardi's financial journey is nothing short of dramatic. Back in 2015, he claimed to be worth around $264 million. By 2020, however, his story took a darker turn when he admitted in court that his fortune had dwindled to nothing, despite once being worth between $50 and $80 million.

Unfortunately, things took a nosedive for Tom in January 2023. He was indicted by grand juries in both Los Angeles and Chicago for allegedly embezzling $18 million from clients, including $3 million intended for victims of a 2018 Lion Air plane crash. Convicted in August 2024 at the age of 85, Girardi now faces up to 20 years in prison. Let’s dive deeper into how this all unfolded.

Before his time in the spotlight, Girardi was a highly successful lawyer, renowned for securing billions in settlements for his clients. His firm, Girardi & Keese, revolutionized the legal landscape by taking on major cases on contingency, meaning clients paid nothing upfront. In return, the firm took a substantial cut—anywhere from 25% to 40%—of the settlement amounts. This lucrative business model made Tom extremely wealthy for decades.

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Early Career

Breaking Records in the Legal World

Tom Girardi was born in June 1939 and earned degrees from Loyola Marymount University, Loyola Law School, and New York University. His career began to take off in 1970 when he became the first attorney in California to win a medical malpractice case awarding over $1 million. Girardi wasn't afraid to take on big players, including corporations like Lockheed Corp, the Los Angeles County Metropolitan Transportation Authority, and Pacific Gas & Electric Co.

One of his most famous cases involved Pacific Gas & Electric. The lawsuit, which inspired the movie "Erin Brockovich," resulted in a historic settlement of $333 million for 650 residents of Hinkley, California. Girardi's work in this case not only changed lives but also cemented his reputation as a fearless advocate for the underdog.

Personal Life and Relationships

A Marriage That Made Headlines

In 1999, Tom married actress Erika Chahoy, known today as Erika Jayne. At the time, she was in her late 20s, while he was in his 60s. This was Tom's second marriage, and he was still embroiled in a contentious legal battle with his first wife over their shared assets. Interestingly, the couple met when Erika was working as a waitress at a restaurant in Beverly Hills called Chasen's, which Tom co-owned.

As the years passed, Erika gained fame as a cast member on the reality TV series "The Real Housewives of Beverly Hills," starting in 2015. Despite their high-profile lives, Tom and Erika announced their separation in November 2020 after 21 years of marriage. Their relationship and eventual split became the subject of much media scrutiny, especially amid the financial turmoil surrounding Tom.

Financial Collapse

The Road to Bankruptcy

As Erika's star rose in reality TV, Tom was quietly struggling to keep his law firm afloat. In one loan application during this period, Girardi reported a net worth of $264 million, listing assets such as two private planes, $9 million worth of jewelry, $3 million in antiques, and a Pasadena estate valued at over $10 million. He confidently predicted that his firm’s 2016 legal fees would exceed $110 million.

However, the cracks began to show in May 2021 when Tom and Erika listed their Pasadena mansion for $13 million. They finally sold it in October 2022 for a significantly lower $7.5 million. Around this time, creditors grew suspicious upon discovering millions of dollars being transferred to EJ Global LLC, Erika's entertainment company. The total amount allegedly topped $20 million.

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A creditor, Law Finance Group, sued for repayment, accusing Girardi of misusing funds for his extravagant lifestyle. Tom dismissed these claims as "fraud," but the parties eventually settled out of court. Other creditors followed suit, including a security company that demanded $53,000 for protecting their Pasadena home and Tom's first wife, who claimed her $10,000 monthly alimony payments had ceased.

One of Girardi's clients, a man severely burned in a 2010 PG&E pipeline explosion, alleged that he hadn't received millions owed to him as part of a settlement. In January 2020, Girardi agreed to pay the man $12 million but allegedly stopped after only $1 million. The family sued and placed a lien on approximately $23 million worth of Girardi and Jayne's assets.

The Final Straw: Involuntary Bankruptcy

In December 2020, Tom and his law firm were forced into involuntary Chapter 7 bankruptcy. Among his creditors were his two former law partners, who claimed they were owed $750,000 and $1.5 million, respectively. A month earlier, a federal lawsuit accused Tom of embezzling "millions" of dollars owed to clients.

During late 2020 testimony, Girardi revealed the shocking truth: "At one point, I had about $80 million or $50 million in cash. That's all gone. I don't have any money." Upon closer examination, it was discovered that his once-$50 million stock portfolio was now worth only a few thousand dollars.

Creditors argued that Girardi had transferred $20 million to Erika's entertainment company, alleging the divorce was a "sham" to shield assets. Additional claims surfaced from clients who never received their settlement money. Lawyers overseeing the Girardi Keese bankruptcy demanded $28 million from Erika, including interest and penalties, citing $25 million in expenses she allegedly racked up between 2008 and 2020.

In response, Erika's lawyers denied any personal liability, stating she had never received or benefited from these funds. They vowed to pursue legal action against those making such accusations.

Tom Girardi's story is a cautionary tale of ambition, wealth, and downfall. From pioneering legal victories to criminal charges, his life has been marked by both triumph and tragedy. As the legal battles continue, one thing is certain: Tom's legacy will be remembered for years to come.