A federal judge in Chicago has frozen the assets of Thomas Los Angeles’ attorney general, finding that he misappropriated at least $ 2 million in client funds caused by the families of those killed in a Boeing jet crash in Indonesia.
During a contempt hearing Monday morning, U.S. District Judge Thomas M. Durkin said Girardi’s behavior was “worrying” and referred him to the U.S. Attorney’s Office for a criminal investigation.
“No matter what your personal financial situation is, no matter what kind of pressure you are under, if you touch customer money, you will be banned and criminally prosecuted,” Turkin said.
“You learn it in law school. Someone with experience like Mr. Girardi knows it,” the judge said.
Girardi, 81, is one of the country’s leading civil lawyers, thanks to his role in the case that promoted the film “Erin Brockovich” and most recently, with his third wife, 49-year-old pop singer Erica Jane, who appeared in “Beverly Hills’ Real Housewives”
During the trial, two lawyers representing Girardi said he did not currently have $ 2 million to pay his clients. Los Angeles attorney Evan Jennes told the judge that his client, Girardi Keys, had about $ 15,000 in his operating accounts.
“They haven’t been able to get paid recently,” Genius told the judge. The attorney also cited the expected family court fight with Jane over “obligations and debts” and their assets. The couple filed for divorce last month after more than 20 years of marriage.
Girardi attended the court hearing by phone, but did not speak beyond acknowledging his presence. His lawyers, who have been hired in recent days, said Girardi could not help them prepare a defense for the trial. They said they cared about his mental capacity.
“I do not know if he understands the nature or the force of gravity of the current situation,” Jennes told the judge.
Another lawyer for the families of the plane crash victims called the allegations “a hoax.” Attorney Jay Edelson, who warned the judge about the misappropriation of funds, told Durkin that, like last week, Girardi would pay him in an attempt to prevent a contempt trial.
Turkin also ordered the appointment of a trustee to oversee the remaining assets of Girardi and his company. He said it was a priority for Girardi’s customers to get their full solution.
“These are widows and orphans,” he said, about $ 500,000 each. “Half a million dollars in any one of these families is significant money, the tragedy they faced and trying to continue after that will change lives.”
Problems settled from the crash of the Lion Air plane 610 from Indonesia that sank at sea, killing all 189 people on board. This aircraft is the 737 Max, which Boeing landed due to problems with its anti-stall software.
The missing money was part of the amount Girardi and his company negotiated from Boeing for four families, and the federal judge oversaw the case and payments. The terms of the settlement were confidential, but based on comments made in court, each client should have been paid $ 2 million, but only 75% of the money owed to them was received.
Last week, Edelson’s law firm filed a separate lawsuit against Girardi, alleging that Lion Air diverted immigration money to finance for him and his wife a “public image of obscene wealth.”