Elissa Miller, the trustee who is investigating the assets of Girardi Keese for the firm SulmeyerKupetz PC, filed a report on Tuesday, April 13, claiming that the firm still owes at least $26 million in settlement funds to “anywhere from dozens to hundreds of clients.”
According to Us Weekly, $2 million of these funds are owed to plaintiffs from the Lion Air Flight 610 crash, which happened in 2018. A December 2020 lawsuit filed against Girardi and his estranged wife, Real Housewives of Beverly Hills star Erika Girardi, alleged that the couple had embezzled the funds intended for the crash victims.
In addition to that $2 million, the report alleges that the firm still owes $11 million to a family who were victims of a 2010 gas pipeline explosion in San Bruno, California. Miller said it was “most distressing” to find “evidence that many cases had settled but the clients had not received the funds from the settlement,” and added that new claims for unpaid funds are coming in every day. Some of the firm’s other clients included victims of the 2018 Woolsey fire and more than 8,200 clients who had dealt with gas leaks in Southern California.
The trustee’s report also notes that the Los Angeles offices of Girardi Reese have file rooms “packed-to-the-gills” with “decades-old” case files, phone messages, canceled checks and personal correspondence “for attorneys long gone from the firm,” in addition to copies of any publications that featured Girardi or the firm. “It appeared that if a publication featured Tom Girardi or the [firm] on the cover or featured the [firm] in an article, [Girardi Keese] ordered cases of the publication,” the report reads.
Last month, The State Bar of California filed an objection requesting that an independent expert examines Tom Girardi‘s ongoing health issues amid his divorce from Erika and temporary conservatorship.
According to court documents obtained by Us Weekly on Monday, March 15, state that attorneys representing the Bar believe the 81-year-old Colorado native’s conservatorship petition was “filed under highly unusual circumstances.” In February, Tom’s brother Robert Girardi was named temporary conservator of Tom’s estate and personal matters following an undisclosed medical emergency.
“Although the Petition alleges that Girardi suffers from dementia and is unable to care for himself, as recently as November 2020 — two months before the Petition was filed — Girardi was holding himself out as a legal expert and moderated a legal education panel discussion with leading trial attorneys and presented on complex litigation strategy,” the objection claims, adding that the information provided to the courts about Tom’s mental state isn’t sufficient.
The lawyer and the Pretty Mess singer have been at the center of legal controversy since announcing in November that they were splitting after 20 years of marriage. Class action firm Edelson PC accused the pair of faking their divorce to “fraudulently protect” their money, claiming they were “on the verge of financial collapse.” They were also accused of embezzling $2 million in settlement funds intended to help victims of the crash of Lion Air Flight 610 in 2018.
In December 2020, Tom’s assets were frozen as concerns about his health began to emerge. At the time, attorney Evan Jenness questioned whether his client “understands either the nature or the gravity of the current situation,” suggesting that Tom undergo a medical examination.
Last month, the State Bar of California declared that Tom was “not eligible to practice law” and stripped him of his legal license, effective March 9. Court documents later revealed that the 81-year-old was diagnosed with late-onset Alzheimer’s and dementia.
Clinical psychiatrist Dr. Nathan Lavid wrote in an affidavit filed on March 10 that Tom suffers from “moderate” delusions and is unable to attend court hearings “for the foreseeable future” as his and Jayne’s legal troubles continue, reports Us Weekly.
Photo Credit: Girardi Keese
