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Narrator: In this episode
of "American Greed"...
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He's a powerhouse litigator who
eats big corporations for lunch.
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Super lawyer Tom Girardi
is worth $100 million
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but says he's a champion
of the little guy.
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Archie: Tom was one of the most
respected trial lawyers
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00:00:27,761 --> 00:00:29,462
in U.S. legal history.
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Narrator:
He wins billions in settlements
for clients around the globe.
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Girardi: As a lawyer, sometimes
you feel pretty good.
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Narrator: Girardi makes his
fortune in the courtroom,
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but his reputation
is all Hollywood.
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Edelson:
He said "I was in that!
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I'm the
'Erin Brockovich' lawyer!"
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And that stuck.
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Narrator:
And whether he's taking on Big
Pharma or Major League Baseball,
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he's a legal legend.
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Girardi:
They did the wrong thing.
You gotta make it right.
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Narrator:
Girardi's got the mansion...
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the cars...
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the swagger...
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and the glamorous "Real
Housewife of Beverly Hills."
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Forouzan: He said stuff like
"Forget about it, baby."
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That's showmanship.
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Narrator: But clients claim that
this showman
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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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Lowrey: It's about a lot of
people who have been victimized
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once, twice, three times.
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Narrator:
And his victims trust "American
Greed" to tell their stories.
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Jones:
They're ruining lives.
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They're ruining
thousands of lives.
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Narrator: Until this accused
con-man counselor's world
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starts to crumble.
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Edelson: That's what's been
happening the whole time.
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"The old man went through
all the money."
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Narrator:
And Girardi's days of making
headlines are far from over.
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Sharp: Is it greed?
Yes.
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Is it pride? Absolutely.
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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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**
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**
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**
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Narrator:
Tom Girardi's illustrious career
as a personal injury attorney
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has made him
an all-American success story.
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The flashy uber lawyer
is a multi-millionaire,
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with a lifestyle most
can only dream of.
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It's on display every week,
along with his beautiful,
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much younger, wife,
Erika Jayne,
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who shares the intimate details
of their marriage
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on the hit
reality series
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"The Real Housewives
of Beverly Hills."
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But on November 3, 2020,
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the press catches wind
of a bombshell --
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Erika's filing
for divorce.
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This is wife
number three.
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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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Narrator:
Her soon-to-be ex-husband
isn't nearly as famous as Erika.
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But Girardi is a flamboyant
character in his own right --
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at least
in the courtroom.
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Edelson:
In the legal world, this is
a case about Tom Girardi.
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In the reality world, it's about
Erika Jayne's husband.
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Narrator: Erika says she wants
a divorce because,
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she contends, Tom cheats
and treats her 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,
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as the public
will soon 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
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Tom stole client funds,
and Erika knew it.
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Edelson: We sued under
federal statute RICO,
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which is the statute that
you use to go after the mob.
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Narrator: A collapsing marriage
and avalanche of legal woes
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are just the beginning
of Tom's troubles.
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Teetering on bankruptcy,
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Girardi risks losing what,
according to Erika,
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might 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, Erika,
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is even born,
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Girardi graduates from Loyola
Marymount Law School in L.A.
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He establishes a personal-injury
law practice,
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and scores early victories,
including a big claim.
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Lowrey: Just a few years
out of law school,
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Tom made a name for himself
by being the first lawyer
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in California to win
a medical malpractice judgment
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of more than $1 million.
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And he was always an expert
at marketing himself,
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so he would turn every single
victory into three more.
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Narrator: Including a victory
that will make him famous --
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the so-called
Erin Brockovich case.
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Lowrey: The Erin Brockovich case
put him on the map nationally.
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Narrator: Before the world
knows her as a character
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that wins Julia Roberts an Oscar
for Best Actress,
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Erin Brockovich is a real-world
legal clerk.
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She works with her boss,
attorney Ed Masry,
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to lead a class-action lawsuit
against Pacific Gas and Electric
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for releasing cancer-causing
chemicals into groundwater.
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It's called
a "toxic mass tort case."
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When Masry
runs out of money,
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he turns to Tom Girardi
for help.
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With Girardi on Masry's team,
in 1996,
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PG&E settles
for $333 million.
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The attorneys pocket
$133 million
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in contingency fees
alone.
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Edelson: Erin Brockovich was the
defining case for a lot of us.
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And the movie compelled
a lot of us to go to law school,
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and fight for
the underdog.
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Narrator:
Girardi name-drops his A-list
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connections to the movie
for decades.
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In promotional interviews,
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he sounds like
hehas a starring role.
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Shooting that movie --
I was on the set every day --
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I got to know
Julia Roberts,
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And to this day,
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we still have the chance
to say "hello" now and then.
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Narrator: Except, in the film,
Tom's not important enough
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to score
an on-screen nod.
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Writers invent a composite
they call "Kurt Potter."
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Erin, I was just talking
about you.
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This is our new partner,
Kurt Potter.
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He'll be handling
Hinkley now.
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Oh. I see what you mean
about a secret weapon.
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Erin, it's great to meet you.
You've done a fabulous job.
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He immediately latched on to it,
and said, "That's me!"
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So, even though they never said
"Tom Girardi,"
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he said,
"I was in that.
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I'm the
'Erin Brockovich' lawyer."
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And that stuck.
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And he realized that
that fame got him
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an incredible amount
of power.
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Narrator: Powerful lawyer,
even better businessman.
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In glossy advertising, he's
Girardi-Keese's best hype man,
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and in P.R. interviews,
seizes every opportunity
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to pitch his firm's
signature calling card.
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And we're interested
in doing one thing,
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and that's helping
the little guy,
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giving the guy a voice,
who's been harmed,
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who otherwise
wouldn't have a voice.
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Narrator: 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
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in the brutal beating
of a San Francisco Giants fan
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outside L.A.'s
Dodger Stadium.
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Lewis: Beaten so badly
that he remains in a coma
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in a San Francisco
hospital.
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Narrator: Girardi sues
the victim's attackers
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andthe Dodgers,
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blaming negligent security
for his client's trauma.
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Investigative reporter
Brandon Lowrey covers the trial,
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and gets a front-row seat
to the Girardi Show.
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Lowrey:
When I first met Tom,
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he was in the middle of
the Bryan Stow case.
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He was representing the fan
against the Dodgers.
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Narrator: And he does it all
with dramatic panache.
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The Dodgers should be paying
the medical expense
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for this man and his family
right now.
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"Hey, man, we made a mistake.
We're so sorry."
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And instead, you come in here,
and you deny what the law is.
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You deny you have any ability
to keep the place safe.
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"People get hurt,
too bad."
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Narrator: In and outside the
courtroom, Lowrey is impressed.
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He remembered my name
the first time I told it to him.
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The next day, he came up to me,
"Brandon, great story."
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He was just
a really nice guy.
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Narrator:
Girardi's closing argument
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is a folksy master class
in persuasion.
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You know what?
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You're gonna do
the right thing.
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I know you will.
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Tom Girardi's clients
needed a win.
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He was the man who was gonna
solve their problems.
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He was their hero.
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Narrator:
The jury awards Girardi's client
nearly $18 million.
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I didn't know
who he was.
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I mentioned this
to one of my colleagues,
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and he was like, "Oh, yeah,
he's kind of a big deal.
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He was one of the
Erin Brockovich lawyers,
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and his wife's on
'Real Housewives.'"
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And I was like, "Wow.
This guy remembered me."
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I can only imagine how clients
would have felt,
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being treated like
they really mattered to him.
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Narrator:
Six years later,
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and only days before Erika Jayne
files for divorce,
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Tom will give his last-known
on-camera interview
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to personal-injury attorney
Daniel Forouzan,
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who lands Girardi
as a marquee guest
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on his "Schmoozin'
with Forouzan" podcast.
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**
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Hi.
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My name is Daniel Forouzan,
and welcome to the first episode
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of the "Schmoozin' with
Forouzan" podcast.
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I went in there thinking
to myself, "Oh, wonderful.
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I got a big name for the first
episode of my podcast."
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That's all I knew.
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And I was excited
to listen to him, and learn.
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Narrator: Sharing that interview
exclusively
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with "American Greed,"
Forouzan learns that
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Girardi's happy to talk shop
about his Dodgers win.
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Not too long ago, sir,
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I was listening live
to your closing
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in the Bryan Stow case,
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and now here I am,
sitting across from you,
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getting to ask you
all these questions.
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I can't tell you
how excited I am.
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I got all the accolades --
"Girardi won."
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Forget about it, baby."
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It was that wonderful,
sweet client
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that those jurors
really liked.
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He says things like,
"Forget about it, baby."
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00:10:40,407 --> 00:10:41,641
And I'm thinking
to myself,
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"Oh, my God.
I'm in 'Dick Tracy.'
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00:10:43,076 --> 00:10:44,244
What's going on here?
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Do we still
speak like that?"
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At the time,
I found that charming,
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because no one else
has ever spoken to me like that.
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Narrator:
But clients say Girardi's charm
never lasts for long.
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Coming up, Tom Girardi plays
Erika Jayne's Prince Charming.
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He had so much power
and influence and money
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that he could take
kind of a nobody
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00:11:07,100 --> 00:11:08,768
and make her
into a star.
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Narrator:
But who's really funding
their fairytale lifestyle?
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**
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00:11:27,220 --> 00:11:32,525
**
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Narrator: As a hot-shot L.A.
lawyer, Tom Girardi cultivates
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00:11:36,730 --> 00:11:40,333
a big-spending,
showy reputation.
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Lowrey: Since the 1980s,
he had a mansion in Pasadena.
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00:11:47,574 --> 00:11:48,908
And he would entertain
politicians.
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00:11:48,942 --> 00:11:50,477
He'd entertain
other lawyers.
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00:11:50,510 --> 00:11:53,913
And this goes back
long before Erika.
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Narrator: By the late '90's,
when he meets 27-year-old
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00:11:57,350 --> 00:11:59,786
cocktail waitress
Erika Chahoy,
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00:11:59,819 --> 00:12:02,722
they're a match made
in Hollywood.
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00:12:02,756 --> 00:12:06,126
Sharp: Tom Girardi and Erika
are two peas in a pod.
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00:12:06,159 --> 00:12:10,663
And when they met, it was like
a stereotype ran into a cliché.
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00:12:10,697 --> 00:12:15,068
Narrator: They marry in 2000,
and the one-time exotic dancer
239
00:12:15,068 --> 00:12:18,471
begins her metamorphosis
to Erika Jayne,
240
00:12:18,505 --> 00:12:20,740
the aspiring singer
and celebrity
241
00:12:20,774 --> 00:12:26,079
bankrolled by her new husband
33 years her senior.
242
00:12:26,112 --> 00:12:28,581
Author Kathleen Sharp
will spend years
243
00:12:28,615 --> 00:12:31,217
investigating
Tom Girardi.
244
00:12:31,251 --> 00:12:32,585
Sharp:
They're very similar,
245
00:12:32,619 --> 00:12:37,223
their ambitions
and their public personas.
246
00:12:37,257 --> 00:12:40,794
She was very clever
to hitch her star to him.
247
00:12:40,827 --> 00:12:44,097
Narrator: But at the same time
Erika's star is rising,
248
00:12:44,097 --> 00:12:47,901
Tom Girardi is about to take
another big swing at Pacific Gas
249
00:12:47,934 --> 00:12:52,405
and Electric -- the company
that made him rich and famous.
250
00:12:52,439 --> 00:12:56,109
They're behind another
devastating disaster.
251
00:12:56,142 --> 00:12:57,577
And for Girardi,
252
00:12:57,610 --> 00:13:01,514
it's a new opportunity
to cash in on tragedy.
253
00:13:07,153 --> 00:13:10,357
On a warm September evening
in 2010,
254
00:13:10,390 --> 00:13:12,692
Joe Ruigomez
is a teenager,
255
00:13:12,726 --> 00:13:16,763
at home watching a football game
with his girlfriend.
256
00:13:16,796 --> 00:13:21,134
Suddenly, his entire
neighborhood explodes.
257
00:13:21,167 --> 00:13:24,337
Almaguer: This city's reeling
from an explosion so powerful
258
00:13:24,371 --> 00:13:27,640
it claimed lives and forever
charred the landscape here.
259
00:13:27,674 --> 00:13:30,510
The local gas company,
Pacific Gas and Electric,
260
00:13:30,543 --> 00:13:34,881
says a 30-inch gas line
likely ruptured.
261
00:13:34,914 --> 00:13:40,220
Narrator: With burns covering
his body, Joe clings to life.
262
00:13:40,253 --> 00:13:43,089
Amazingly, this is
his second appearance
263
00:13:43,123 --> 00:13:45,091
as a victim on
"American Greed."
264
00:13:45,125 --> 00:13:50,630
His first was in season 14,
episode 11, "Burned by Greed,"
265
00:13:50,663 --> 00:13:53,133
recounting how he survived
the explosion
266
00:13:53,166 --> 00:13:57,470
caused by PG&E's
negligence.
267
00:13:57,504 --> 00:13:58,705
Joe: Boom.
268
00:13:58,738 --> 00:14:01,508
Fire comes filling up
the whole house.
269
00:14:01,541 --> 00:14:04,878
It's like a huge blowtorch,
if you will.
270
00:14:04,911 --> 00:14:07,113
I don't know what's going on,
but all I know is this is it.
271
00:14:07,147 --> 00:14:08,948
I'm, like,
melting alive.
272
00:14:09,049 --> 00:14:10,483
It's over.
273
00:14:11,351 --> 00:14:14,354
Narrator: Joe's girlfriend,
Jessica, perishes,
274
00:14:14,387 --> 00:14:18,058
along with seven others
in San Bruno.
275
00:14:21,661 --> 00:14:24,264
Archie: Joe -- We don't know
if he's gonna make it.
276
00:14:24,297 --> 00:14:26,533
And he's hooked up to
a million tubes,
277
00:14:26,566 --> 00:14:30,270
and covered in bandages
all over.
278
00:14:30,303 --> 00:14:33,973
You can't
recognize him.
279
00:14:34,074 --> 00:14:38,078
Narrator: Kimberly Archie, a
close friend of Joe's mother,
280
00:14:38,111 --> 00:14:39,946
knows many lawyers
in her work
281
00:14:39,979 --> 00:14:42,282
as a youth sports
safety advocate.
282
00:14:42,315 --> 00:14:45,552
Some of them have high praise
for Tom Girardi.
283
00:14:45,585 --> 00:14:48,088
All they ever talked about
was Tom Girardi.
284
00:14:48,088 --> 00:14:49,222
Tom Girardi this.
285
00:14:49,255 --> 00:14:50,824
"We'll take it to Tom."
286
00:14:50,857 --> 00:14:55,095
Narrator: And when it comes to
winning against PG&E,
287
00:14:55,128 --> 00:14:57,530
no one has
a better reputation.
288
00:14:57,564 --> 00:15:00,900
I ran the meeting, initially,
when they met Tom
289
00:15:00,934 --> 00:15:06,239
because this was just
a horrific nightmare for them.
290
00:15:06,272 --> 00:15:08,608
Narrator:
But with a home in ashes,
291
00:15:08,641 --> 00:15:11,544
and facing a mountain
of medical debt for Joe,
292
00:15:11,578 --> 00:15:15,181
the Ruigomez family, like so
many of Girardi's clients,
293
00:15:15,215 --> 00:15:19,886
are vulnerable,
as Joe's sister Jamie recalls.
294
00:15:19,919 --> 00:15:24,157
We thought, "Wow, like,
he's an amazing lawyer.
295
00:15:24,190 --> 00:15:25,458
He's so well-known."
296
00:15:25,492 --> 00:15:27,827
We had no experience
in that world.
297
00:15:27,861 --> 00:15:32,132
Like, we were a middle-class,
blue-collar family.
298
00:15:32,165 --> 00:15:35,535
Narrator:
The Ruigomez family signs on
with Girardi-Keese,
299
00:15:35,568 --> 00:15:38,571
and their celebrity L.A. lawyer
fights for them,
300
00:15:38,605 --> 00:15:43,376
suing PG&E
for negligent procedures.
301
00:15:43,410 --> 00:15:45,512
Joe:
I was in a coma
for most of that.
302
00:15:45,545 --> 00:15:48,381
And I woke up, and they said,
"This is our lawyer."
303
00:15:48,415 --> 00:15:49,849
Every time
I talked to him,
304
00:15:49,883 --> 00:15:51,484
he'd whisper me sweet nothings
all the time,
305
00:15:51,518 --> 00:15:53,186
you know,
talk a good game.
306
00:15:53,219 --> 00:15:55,722
It just seemed logical
to trust him.
307
00:15:57,490 --> 00:16:00,360
Narrator: As their case
winds through the court,
308
00:16:00,393 --> 00:16:02,028
Joe's family friend,
Kimberly,
309
00:16:02,062 --> 00:16:06,466
starts working closely with Tom
as a litigation consultant,
310
00:16:06,499 --> 00:16:08,301
giving her
an up-close look
311
00:16:08,335 --> 00:16:11,738
at Girardi's
outrageous spending.
312
00:16:11,771 --> 00:16:15,875
He leases not one, but two,
private jets,
313
00:16:15,909 --> 00:16:20,580
and drives a rotating fleet
of luxury cars.
314
00:16:20,613 --> 00:16:23,049
Tom showers Erika
with jewels,
315
00:16:23,049 --> 00:16:25,251
including the pièce
de résistance --
316
00:16:25,285 --> 00:16:29,656
$750,000
diamond earrings.
317
00:16:29,689 --> 00:16:35,161
His estimated net worth peaks
at $100 million.
318
00:16:35,195 --> 00:16:37,497
Yet, for all his wealth,
319
00:16:37,530 --> 00:16:41,634
Archie notices something
doesn't quite add up.
320
00:16:41,668 --> 00:16:46,072
Archie: I kept thinking, "How is
he living like a billionaire
321
00:16:46,106 --> 00:16:47,440
on millionaire money?"
322
00:16:47,474 --> 00:16:50,110
I never thought
he made that kind of money
323
00:16:50,143 --> 00:16:52,278
just on settlements.
324
00:16:52,312 --> 00:16:54,114
Narrator:
She might be right.
325
00:16:54,147 --> 00:16:56,983
She just doesn't
know it yet.
326
00:16:57,083 --> 00:17:03,890
**
327
00:17:03,923 --> 00:17:07,527
Three years into their lawsuit
against PG&E,
328
00:17:07,560 --> 00:17:11,331
Tom Girardi has exciting news
for the Ruigomez family --
329
00:17:11,364 --> 00:17:15,201
he's won them a
multimillion-dollar settlement.
330
00:17:15,235 --> 00:17:17,370
Most is earmarked
for Joe,
331
00:17:17,404 --> 00:17:20,173
who's already endured
dozens of surgeries,
332
00:17:20,206 --> 00:17:22,409
and will require
extensive medical care
333
00:17:22,442 --> 00:17:24,144
for the rest of
his life.
334
00:17:24,177 --> 00:17:25,578
I didn't have any money
at the time.
335
00:17:25,612 --> 00:17:27,614
Everything that me
and my family owned
336
00:17:27,647 --> 00:17:29,416
was up in smoke --
literally.
337
00:17:29,449 --> 00:17:31,384
Narrator:
But Joe's sister, Jamie,
338
00:17:31,418 --> 00:17:34,721
says Girardi isn't explaining
the details
339
00:17:34,754 --> 00:17:35,955
of their settlement.
340
00:17:36,056 --> 00:17:37,624
We didn't see
any paperwork.
341
00:17:37,657 --> 00:17:40,927
And once my mom
started pressing him,
342
00:17:40,960 --> 00:17:44,497
he pretty much cut off
communication with her.
343
00:17:44,531 --> 00:17:47,901
We had no idea what we were
getting ourselves into.
344
00:17:47,934 --> 00:17:52,072
Narrator:
And when Tom tells the family
how much money they'll receive,
345
00:17:52,072 --> 00:17:57,610
instead of comforted,
Jamie recalls feeling judged.
346
00:17:57,644 --> 00:18:01,314
He made me feel like I was being
an ungrateful brat,
347
00:18:01,348 --> 00:18:04,651
as if he was expecting me
to jump for joy
348
00:18:04,684 --> 00:18:06,186
that I got this money,
349
00:18:06,219 --> 00:18:09,422
but I lost everything
that was important to me.
350
00:18:09,456 --> 00:18:14,494
Narrator:
On top of that, Girardi's
smarminess makes her suspicious.
351
00:18:14,527 --> 00:18:16,730
He called everybody, like,
"Oh, baby,"
352
00:18:16,763 --> 00:18:18,431
and, like,
stuff like that.
353
00:18:18,465 --> 00:18:21,201
And he just tried too hard,
and it was phony.
354
00:18:21,234 --> 00:18:22,869
He even called
my father "baby."
355
00:18:22,902 --> 00:18:24,771
Like, what are you doing?
356
00:18:24,804 --> 00:18:28,274
Narrator: Coming up,
more families in dire straits
357
00:18:28,308 --> 00:18:31,945
depend on Tom Girardi
to be their champion
358
00:18:32,045 --> 00:18:33,213
of the little guy.
359
00:18:33,246 --> 00:18:35,148
We need this money
for help.
360
00:18:35,181 --> 00:18:38,918
We don't want this
to go buy lavishly.
361
00:18:38,952 --> 00:18:41,054
Narrator:
But their lawyer does,
362
00:18:41,054 --> 00:18:43,656
and it will lead to
his downfall.
363
00:18:43,690 --> 00:18:46,126
Edelson: This was not
a small criminal operation.
364
00:18:46,159 --> 00:18:48,161
It was large.
It was unwieldy.
365
00:18:48,194 --> 00:18:50,697
That is something out of
a John Grisham novel.
366
00:18:57,826 --> 00:19:02,998
**
367
00:19:02,998 --> 00:19:04,366
Narrator:
In California,
368
00:19:04,400 --> 00:19:07,269
while the Ruigomez family
trusts Tom Girardi
369
00:19:07,302 --> 00:19:09,138
to deliver millions
in settlement money
370
00:19:09,171 --> 00:19:12,007
from the PG&E
explosion lawsuit,
371
00:19:12,007 --> 00:19:13,776
halfway across
the country,
372
00:19:13,809 --> 00:19:18,747
the Jones family is counting
on him to answer their prayers.
373
00:19:18,781 --> 00:19:25,454
**
374
00:19:25,487 --> 00:19:29,224
In Lyndon, Kansas, they're
represented by Tom's firm
375
00:19:29,258 --> 00:19:31,493
as part of
a 2012 lawsuit
376
00:19:31,527 --> 00:19:36,031
against the Johnson & Johnson
drug Risperdal.
377
00:19:36,031 --> 00:19:38,233
After taking the drug
as a child,
378
00:19:38,267 --> 00:19:41,036
Holly and her husband,
Michael's, son Matthew,
379
00:19:41,036 --> 00:19:44,907
who is autistic,
develops gynecomastia,
380
00:19:44,940 --> 00:19:47,910
male swelling
of breast tissue.
381
00:19:47,943 --> 00:19:49,378
Insurance won't cover
382
00:19:49,411 --> 00:19:53,349
the corrective operation
that he needs.
383
00:19:53,382 --> 00:19:58,287
Holly: It broke my heart
to see him going through that,
384
00:19:58,320 --> 00:20:03,392
and I couldn't make it better
right away.
385
00:20:03,425 --> 00:20:07,563
Narrator: When Michael dies
from lung cancer in 2016,
386
00:20:07,596 --> 00:20:10,332
Holly and her children
are left reeling,
387
00:20:10,366 --> 00:20:12,334
and financially strapped.
388
00:20:12,368 --> 00:20:15,137
Holly suffers brain
and physical injuries,
389
00:20:15,170 --> 00:20:16,872
leaving her disabled.
390
00:20:16,905 --> 00:20:19,775
They hope for
a miracle settlement for Matt
391
00:20:19,808 --> 00:20:22,144
and a little money
to repair their home,
392
00:20:22,177 --> 00:20:24,847
if there's anything
left over.
393
00:20:24,880 --> 00:20:26,849
Kellie: And it's not that
we want this money.
394
00:20:26,882 --> 00:20:30,052
It's that a lot of us
can't afford this stuff.
395
00:20:30,085 --> 00:20:33,088
We can't afford
Matt's surgery.
396
00:20:33,122 --> 00:20:35,591
Narrator:
Though Girardi-Keese advertises
397
00:20:35,624 --> 00:20:38,494
that "we treat our clients
like family,"
398
00:20:38,527 --> 00:20:42,698
the Joneses say they receive
hardly a word of correspondence.
399
00:20:42,731 --> 00:20:44,900
Kellie: We kept getting
pushed off, and pushed off,
400
00:20:44,933 --> 00:20:47,670
and pushed off, and pushed off,
and we needed the help.
401
00:20:47,703 --> 00:20:53,075
Something just wasn't right
in the way they handled you,
402
00:20:53,108 --> 00:20:55,010
the way they
treated you.
403
00:20:55,044 --> 00:20:56,812
Narrator:
Finally, after seven years,
404
00:20:56,845 --> 00:20:59,848
Girardi-Keese notifies Holly
that they've negotiated
405
00:20:59,882 --> 00:21:03,318
a settlement
with Risperdal's manufacturer.
406
00:21:03,352 --> 00:21:06,855
It will allow the Joneses
to pay for Matt's surgery
407
00:21:06,889 --> 00:21:08,390
and fix up their home.
408
00:21:08,424 --> 00:21:11,660
The amount is modest --
just $12,000 --
409
00:21:11,694 --> 00:21:14,963
but for the Jones family,
it's life-changing.
410
00:21:15,064 --> 00:21:18,500
For the Girardis,
12 grand is a night out.
411
00:21:18,534 --> 00:21:22,271
* Cha-ching,
it's expensive to be me *
412
00:21:22,304 --> 00:21:24,773
Narrator:
Erika's video "Xxpen$ive"
413
00:21:24,807 --> 00:21:28,610
lays out her thoughts
on money management.
414
00:21:28,644 --> 00:21:32,648
Erika was the perfect mate,
in that she loved to spend money
415
00:21:32,681 --> 00:21:35,684
just as much as Tom did,
if not more.
416
00:21:35,718 --> 00:21:38,454
It was a trophy, to him,
to say, like,
417
00:21:38,487 --> 00:21:40,556
"I paid for
her music video."
418
00:21:40,589 --> 00:21:42,825
Narrator:
As reality TV royalty,
419
00:21:42,858 --> 00:21:46,929
Erika reportedly tallies
more than $14 million
420
00:21:46,962 --> 00:21:49,098
in American Express
charges.
421
00:21:49,131 --> 00:21:52,534
But her celebrity seems to
pay off for Tom.
422
00:21:52,568 --> 00:21:55,604
How has the reality television
affected your career?
423
00:21:55,637 --> 00:21:58,507
How has it affected
the marketing for you office?
424
00:21:58,540 --> 00:22:01,210
I would be in a hotel room
in New Orleans,
425
00:22:01,243 --> 00:22:04,179
20 people
come running up --
426
00:22:04,213 --> 00:22:06,215
"Are you Erika's husband?"
427
00:22:09,084 --> 00:22:12,588
Narrator: Erika talks about
enlisting a $40,000-a-month
428
00:22:12,621 --> 00:22:17,660
"glam squad," and goes on
eye-popping spending sprees.
429
00:22:20,562 --> 00:22:24,199
Tom and Erika had money
to buy whatever they wanted.
430
00:22:24,233 --> 00:22:26,835
They didn't necessarily have
the most taste.
431
00:22:26,869 --> 00:22:29,304
And I think that's really where
the spirit of greed
432
00:22:29,338 --> 00:22:32,841
comes from -- people
who just have an empty want.
433
00:22:32,875 --> 00:22:36,178
Narrator: Yet, while Tom's
living it up with Erika,
434
00:22:36,211 --> 00:22:40,282
his clients are just trying
to survive.
435
00:22:40,315 --> 00:22:42,518
He was brilliant
at getting the recovery,
436
00:22:42,551 --> 00:22:46,822
getting a payment made by the
defendants in these lawsuits.
437
00:22:46,855 --> 00:22:49,658
He just wasn't very good
at allocating those funds
438
00:22:49,692 --> 00:22:51,527
where they should have
been paid.
439
00:22:51,560 --> 00:22:55,297
Narrator: The Ruigomez family
discovers that firsthand.
440
00:22:55,331 --> 00:22:56,699
They've asked
"American Greed"
441
00:22:56,732 --> 00:22:58,934
to keep the exact amount
confidential,
442
00:22:58,967 --> 00:23:02,771
but, by 2018, they allege
that Girardi pays them
443
00:23:02,805 --> 00:23:04,139
only a small fraction
444
00:23:04,173 --> 00:23:06,208
of their multimillion-dollar
settlement,
445
00:23:06,241 --> 00:23:10,145
telling Joe he'll eventually
get the rest.
446
00:23:10,179 --> 00:23:14,350
At first, Girardi's rationale
sounds plausible.
447
00:23:14,383 --> 00:23:16,852
Joe: "You're gonna get payments
every five years,
448
00:23:16,885 --> 00:23:18,320
lump sums
every five years,
449
00:23:18,354 --> 00:23:20,656
and then, you're gonna get
annuity every month."
450
00:23:20,689 --> 00:23:22,691
And I'm like,
"Oh, that makes sense.
451
00:23:22,725 --> 00:23:24,193
I'm young, you know."
452
00:23:24,226 --> 00:23:26,228
Narrator:
Neil Wertlieb is a lawyer
453
00:23:26,261 --> 00:23:28,697
and ethics expert
in California.
454
00:23:28,731 --> 00:23:31,367
The clients, they don't really
have the access
455
00:23:31,400 --> 00:23:35,337
to the information to figure out
what they're entitled to
456
00:23:35,371 --> 00:23:37,673
unless the lawyer does
what they're supposed to do,
457
00:23:37,706 --> 00:23:41,310
which is to tell them
precisely what's been received,
458
00:23:41,343 --> 00:23:43,612
account for it
basically to the penny,
459
00:23:43,645 --> 00:23:45,848
and whatever balance
is remaining,
460
00:23:45,881 --> 00:23:48,984
all of that is supposed to be
allocated to the clients.
461
00:23:49,084 --> 00:23:52,921
Narrator: Instead, his clients
allege Girardi evades
462
00:23:52,955 --> 00:23:56,525
their pleas to see the actual
paperwork from their settlement.
463
00:23:56,558 --> 00:23:58,827
They claim that he hedges
on showing them
464
00:23:58,861 --> 00:24:02,665
his itemized fees,
and he's late with payments.
465
00:24:02,698 --> 00:24:05,434
Joe: It's just another excuse,
another excuse.
466
00:24:05,467 --> 00:24:08,771
That's when some red flags
started popping up.
467
00:24:08,804 --> 00:24:12,074
Narrator: Red flags
are just the beginning.
468
00:24:12,107 --> 00:24:14,243
Joe: Time would go on,
and then, finally,
469
00:24:14,276 --> 00:24:17,279
if you press him enough,
he'll finally pay you something.
470
00:24:17,312 --> 00:24:19,214
And then, eventually,
that just stopped.
471
00:24:19,248 --> 00:24:20,549
Narrator:
And back in Kansas,
472
00:24:20,582 --> 00:24:22,785
the Jones family says that
Girardi-Keese
473
00:24:22,818 --> 00:24:28,257
plans to keep most of their tiny
$12,500 settlement.
474
00:24:28,290 --> 00:24:31,694
Holly:
They were going to take 40%,
475
00:24:31,727 --> 00:24:38,434
and they were also going to take
$3,500 for postage,
476
00:24:38,467 --> 00:24:41,603
and copies,
and filing fees.
477
00:24:41,637 --> 00:24:44,506
I know they did not spend
that much.
478
00:24:44,540 --> 00:24:47,976
Narrator: Holly claims she
doesn't get an itemized bill,
479
00:24:48,077 --> 00:24:49,278
and pushes back.
480
00:24:49,311 --> 00:24:52,681
Eventually,
they settled for $6,000.
481
00:24:52,715 --> 00:24:55,517
Well, they said, "Okay,
we'll pay you in a month."
482
00:24:55,551 --> 00:24:59,455
Month goes by,
nothing happens.
483
00:24:59,488 --> 00:25:01,223
We kept calling them,
and calling them,
484
00:25:01,256 --> 00:25:02,424
and calling them,
485
00:25:02,458 --> 00:25:04,827
and they would not
respond to us.
486
00:25:04,860 --> 00:25:08,530
Narrator: Up next,
when an Indonesian air disaster
487
00:25:08,564 --> 00:25:10,866
leaves widows and orphans
in its wake,
488
00:25:10,899 --> 00:25:13,235
Tom Girardi
is on the scene.
489
00:25:13,268 --> 00:25:16,939
Past clients warn,
"Check your pockets."
490
00:25:17,039 --> 00:25:22,378
If you're unlucky enough
to have touched Tom Girardi,
491
00:25:22,411 --> 00:25:24,446
he probably had
your wallet.
492
00:25:32,615 --> 00:25:40,657
**
493
00:25:40,690 --> 00:25:45,762
By 2018, Chicago consumer
law attorney Jay Edelson
494
00:25:45,795 --> 00:25:48,865
has a chance to collaborate
as a co-counsel
495
00:25:48,898 --> 00:25:52,935
with the man who has helped
inspire his career --
496
00:25:52,969 --> 00:25:54,904
Tom Girardi.
497
00:25:54,937 --> 00:25:59,308
But Edelson is about to find
new truth in an old saying --
498
00:25:59,342 --> 00:26:03,179
"Never meet your heroes.
They'll only disappoint."
499
00:26:03,212 --> 00:26:04,814
Edelson:
He operated like a mob boss,
500
00:26:04,847 --> 00:26:06,616
you know, what you see
in "The Sopranos,"
501
00:26:06,649 --> 00:26:08,318
where they're at
the restaurant all day,
502
00:26:08,351 --> 00:26:09,619
and if you want
a meeting with them,
503
00:26:09,652 --> 00:26:11,054
you've got to come to
the restaurant.
504
00:26:11,087 --> 00:26:12,388
It wasn't like
any other attorney
505
00:26:12,422 --> 00:26:14,090
I'd ever met
in my life.
506
00:26:14,123 --> 00:26:18,194
Narrator: And talking about the
opioids case they might work on,
507
00:26:18,227 --> 00:26:22,932
in Jay Edelson's opinion,
Tom is shockingly charmless.
508
00:26:23,032 --> 00:26:26,035
Edelson: Within 30 seconds, you
realize he's a horrible person.
509
00:26:26,035 --> 00:26:27,637
And it was clear
he was full of [bleep].
510
00:26:27,670 --> 00:26:29,572
It was just clear
from the very beginning.
511
00:26:29,605 --> 00:26:31,407
He didn't know anything
about the case.
512
00:26:31,441 --> 00:26:35,378
He had no strategy other than
just to wield his influence.
513
00:26:35,411 --> 00:26:37,313
It was not a good mix.
514
00:26:37,347 --> 00:26:39,482
Narrator:
But against his better judgment,
515
00:26:39,515 --> 00:26:43,152
Edelson will give Girardi
a second chance.
516
00:26:48,358 --> 00:26:50,827
Now to that growing
air-disaster mystery,
517
00:26:50,860 --> 00:26:52,295
a Boeing passenger plane,
518
00:26:52,328 --> 00:26:54,063
the company's
most recent design,
519
00:26:54,063 --> 00:26:55,698
suddenly plunging
into the sea,
520
00:26:55,732 --> 00:26:59,068
likely killing
all 189 people on board.
521
00:26:59,102 --> 00:27:00,670
And the question is,
522
00:27:00,703 --> 00:27:03,206
what caused a brand-new plane
to go down in clear skies?
523
00:27:03,239 --> 00:27:07,276
Narrator: When a Boeing 737 MAX,
owned by Lion Air,
524
00:27:07,310 --> 00:27:09,278
crashes in Indonesia,
525
00:27:09,312 --> 00:27:12,115
Girardi-Keese swoops in
to represent
526
00:27:12,148 --> 00:27:14,384
a dozen
grieving family members,
527
00:27:14,417 --> 00:27:17,186
most of them
widows and orphans,
528
00:27:17,220 --> 00:27:21,891
in a lawsuit against
Chicago-based Boeing and others.
529
00:27:21,924 --> 00:27:25,461
A few months later, we got
a call from Tom Girardi's firm,
530
00:27:25,495 --> 00:27:28,564
saying, "We're gonna file
the case in Chicago,
531
00:27:28,598 --> 00:27:31,034
and we'd like you
to help out."
532
00:27:31,034 --> 00:27:34,437
Narrator: When Edelson confirms
that Girardi won't be
533
00:27:34,470 --> 00:27:38,708
directly involved with
the legwork, he signs on.
534
00:27:38,741 --> 00:27:43,212
Both firms agree to
a 50/50 fee split,
535
00:27:43,246 --> 00:27:47,050
and, in February of 2020,
Girardi and Edelson
536
00:27:47,050 --> 00:27:50,953
celebrate a multimillion-dollar
settlement for their clients.
537
00:27:51,054 --> 00:27:55,191
Girardi-Keese is responsible
for promptly paying the families
538
00:27:55,224 --> 00:27:58,061
and cutting co-counsel
their share.
539
00:27:58,061 --> 00:28:00,496
But, as a federal judge
will later find,
540
00:28:00,530 --> 00:28:06,002
by that September, Edelson's
firm hasn't seen a dime.
541
00:28:06,002 --> 00:28:09,505
We were calling every week,
trying to get more information,
542
00:28:09,539 --> 00:28:11,674
and we kept
getting stalled.
543
00:28:11,708 --> 00:28:15,144
Narrator: The Ruigomez family
knows the feeling.
544
00:28:15,178 --> 00:28:17,246
After years of runaround,
545
00:28:17,280 --> 00:28:20,383
they've started sleuthing into
Girardi's past,
546
00:28:20,416 --> 00:28:23,786
and discovered a laundry list
of complaints against him
547
00:28:23,820 --> 00:28:26,656
they find online.
548
00:28:26,689 --> 00:28:29,025
They tell their friend,
Kimberly Archie,
549
00:28:29,025 --> 00:28:30,493
what they found.
550
00:28:31,828 --> 00:28:35,665
As a host of civil lawsuits
will later allege,
551
00:28:35,698 --> 00:28:38,034
Tom Girardi seems to have
been regularly
552
00:28:38,034 --> 00:28:41,337
transferring client settlements
into his own bank accounts
553
00:28:41,371 --> 00:28:44,607
to sustain
his obscene spending.
554
00:28:44,640 --> 00:28:46,509
Edelson: When money comes in
as client money,
555
00:28:46,542 --> 00:28:48,544
you have to put it in
a separate account.
556
00:28:48,578 --> 00:28:50,246
It is sacrosanct.
557
00:28:50,279 --> 00:28:52,582
Narrator: Client funds
are supposed to be kept
558
00:28:52,615 --> 00:28:55,284
in a trust account
that's registered
559
00:28:55,318 --> 00:28:59,288
and regulated by
the California State Bar.
560
00:28:59,322 --> 00:29:02,058
Lawyers are also bound
to follow
561
00:29:02,091 --> 00:29:05,194
specific payment
procedures.
562
00:29:05,228 --> 00:29:07,697
Let's say it's $100,000
in the trust account,
563
00:29:07,730 --> 00:29:10,299
and I have a 40%
contingency fee on that.
564
00:29:10,333 --> 00:29:14,303
So, if I get my client $100,000,
I will take the $40,000,
565
00:29:14,337 --> 00:29:16,139
move it out of
the trust account,
566
00:29:16,172 --> 00:29:17,707
put it into
my operating account
567
00:29:17,740 --> 00:29:20,743
before I ever touch a penny
or a nickel of that money.
568
00:29:20,777 --> 00:29:22,345
Why?
569
00:29:22,378 --> 00:29:24,013
While it's in your trust
account, it's not your money.
570
00:29:24,013 --> 00:29:26,082
That belongs to
your clients.
571
00:29:26,115 --> 00:29:28,551
Narrator: Bankruptcy trustees
will later claim
572
00:29:28,584 --> 00:29:31,454
not if you're
Tom Girardi.
573
00:29:31,487 --> 00:29:34,390
He took the funds
for his own use,
574
00:29:34,424 --> 00:29:37,327
his own personal expenses,
for gifts to his wife,
575
00:29:37,360 --> 00:29:38,828
whatever it
might have been.
576
00:29:38,861 --> 00:29:42,932
Narrator: It's called
"commingling client funds."
577
00:29:43,032 --> 00:29:45,702
Wertlieb: The amount of money
that was involved here
578
00:29:45,735 --> 00:29:47,437
became very attractive.
579
00:29:47,470 --> 00:29:51,341
Perhaps he saw those funds,
and thought "I've earned it.
580
00:29:51,374 --> 00:29:53,042
I deserve it.
I want it."
581
00:29:53,076 --> 00:29:57,046
Commingling funds is the fast
track to getting disbarred --
582
00:29:57,046 --> 00:30:02,018
or it was supposed to be the
fast track of getting disbarred.
583
00:30:02,051 --> 00:30:04,587
Narrator: Instead,
the California State Bar
584
00:30:04,620 --> 00:30:08,825
inducts Girardi into
the Trial Lawyer Hall of Fame.
585
00:30:08,858 --> 00:30:11,928
Lowrey: On the surface, this is
about a celebrity couple,
586
00:30:11,961 --> 00:30:15,631
but what it's really about,
it's about a lot of people
587
00:30:15,665 --> 00:30:20,069
who have been victimized once,
twice, three times.
588
00:30:20,103 --> 00:30:24,173
Narrator: The Ruigomez family
knows that feeling, as well.
589
00:30:24,207 --> 00:30:26,242
Jamie:
It really is a slap in the face
590
00:30:26,275 --> 00:30:29,445
because we'll just sit there
watching TV, and be like,
591
00:30:29,479 --> 00:30:31,814
"Oh, that's what our money's
being spent on.
592
00:30:31,848 --> 00:30:34,150
Oh, that's what
all the other victims' money
593
00:30:34,183 --> 00:30:35,451
is being spent on.
594
00:30:35,485 --> 00:30:36,986
Oh, that's what
you're doing with it."
595
00:30:37,020 --> 00:30:41,090
Narrator: Joe Ruigomez
copes with constant, daily pain.
596
00:30:41,124 --> 00:30:44,927
But Girardi
seems untouchable.
597
00:30:44,961 --> 00:30:47,597
Archie: Nobody is looking at
any of this stuff.
598
00:30:47,630 --> 00:30:50,767
How could he have done it?
Nobody knew.
599
00:30:50,800 --> 00:30:55,071
Narrator: Up next, Girardi has
seemingly perfected hiding
600
00:30:55,104 --> 00:30:58,675
dirty little secrets
in plain sight.
601
00:30:58,708 --> 00:31:01,778
Tom Girardi was not
a work in progress.
602
00:31:01,811 --> 00:31:07,183
He was already a made man
in the most corrupt way.
603
00:31:15,658 --> 00:31:20,496
**
604
00:31:20,530 --> 00:31:24,500
Narrator:
In 2019, Tom Girardi is regarded
605
00:31:24,534 --> 00:31:28,071
as one of the most successful
litigators in America.
606
00:31:28,071 --> 00:31:32,709
Author Kathleen Sharp has
known better since the 1990s.
607
00:31:32,742 --> 00:31:35,445
Tom was an operator
way back when.
608
00:31:35,478 --> 00:31:37,113
Narrator:
Way back in 2000,
609
00:31:37,146 --> 00:31:41,451
she writes a searing exposé
on the Erin Brockovich case.
610
00:31:41,484 --> 00:31:45,355
Victims from that early
PG&E case accuse Tom
611
00:31:45,388 --> 00:31:48,324
of the same lying
and embezzlement racket
612
00:31:48,358 --> 00:31:50,760
that he's been accused
of repeating with scores
613
00:31:50,793 --> 00:31:53,096
of complaining clients
after them.
614
00:31:53,096 --> 00:31:55,131
Sharp:
Here were these poor people
615
00:31:55,164 --> 00:31:57,166
who had suffered
for years and years,
616
00:31:57,200 --> 00:32:01,571
and they trusted Girardi to
make them, if not whole again,
617
00:32:01,604 --> 00:32:03,272
then at least
to get some money,
618
00:32:03,306 --> 00:32:05,541
so they could take care of
their medical problems.
619
00:32:05,575 --> 00:32:07,910
And that never
really happened.
620
00:32:07,944 --> 00:32:09,545
Narrator: But there's more.
621
00:32:09,579 --> 00:32:11,848
Sharp: What I found
was sort of a gold mine,
622
00:32:11,881 --> 00:32:14,584
which is
the arbitration system.
623
00:32:14,617 --> 00:32:17,954
Narrator: Voluntary arbitration
allows Girardi
624
00:32:18,054 --> 00:32:20,223
to steer some of
his famous cases --
625
00:32:20,256 --> 00:32:24,494
including the Erin Brockovich
case -- into negotiation
626
00:32:24,527 --> 00:32:28,698
instead of a full-blown trial
before a jury.
627
00:32:28,731 --> 00:32:32,935
Private, retired judges
administer those cases.
628
00:32:32,969 --> 00:32:36,105
Sharp:
They were earning hundreds
of millions of dollars,
629
00:32:36,139 --> 00:32:38,608
paying judges
two or three times
630
00:32:38,641 --> 00:32:41,344
what they had earned
in the public sector.
631
00:32:41,377 --> 00:32:45,648
Narrator: Perhaps surprisingly,
this is perfectly legal.
632
00:32:45,682 --> 00:32:47,517
Sharp:
It wasn't just arbitration.
633
00:32:47,550 --> 00:32:51,387
It was him making friends with
some of these private judges.
634
00:32:51,421 --> 00:32:54,857
But Tom took it
a little bit farther.
635
00:32:54,891 --> 00:32:59,729
Narrator: Girardi wines
and dines judges in L.A.
636
00:32:59,762 --> 00:33:03,666
He flies them to baseball games
on his Gulfstream jet,
637
00:33:03,700 --> 00:33:06,369
and even charters
Mediterranean cruises
638
00:33:06,402 --> 00:33:11,341
that his judge pals later call
"educational seminars."
639
00:33:12,442 --> 00:33:15,645
There would be butlered waiters
with silver trays
640
00:33:15,678 --> 00:33:19,115
full of champagne,
or bikini-clad ladies
641
00:33:19,148 --> 00:33:21,551
frolicking on
the sun-drenched decks.
642
00:33:21,584 --> 00:33:25,688
It gave decadence
a bad name.
643
00:33:25,722 --> 00:33:30,460
Narrator: With arbitration,
results are veiled in secrecy,
644
00:33:30,493 --> 00:33:34,063
so Girardi's payouts
escape scrutiny.
645
00:33:34,063 --> 00:33:36,466
And in this
good-old-boy culture,
646
00:33:36,499 --> 00:33:39,769
Girardi's official record
with the California Bar
647
00:33:39,802 --> 00:33:41,771
remains spotless --
648
00:33:41,804 --> 00:33:47,176
which is remarkable, because,
zooming ahead to 2022,
649
00:33:47,210 --> 00:33:50,246
the Bar will disclose
a jaw-dropping number
650
00:33:50,279 --> 00:33:52,615
of complaints
and lawsuits --
651
00:33:52,648 --> 00:33:54,751
more than 200,
652
00:33:54,784 --> 00:33:58,821
dating all the way back
to the early 1980s.
653
00:33:58,855 --> 00:34:03,459
They taught me a thing or two
about not only
654
00:34:03,493 --> 00:34:07,096
how to fleece your clients,
but how to get away with it.
655
00:34:07,130 --> 00:34:12,468
Narrator:
Girardi quietly settles some of
the cases in a Ponzi-like way,
656
00:34:12,502 --> 00:34:16,039
paying off old debts
with new money.
657
00:34:16,039 --> 00:34:18,274
Other times,
court findings show
658
00:34:18,307 --> 00:34:22,311
he simply runs out
the statute of limitations.
659
00:34:22,345 --> 00:34:24,480
And Girardi
thumbs his nose
660
00:34:24,514 --> 00:34:27,350
at a mandate
from the California Bar.
661
00:34:27,383 --> 00:34:32,689
There were 37 cases where he was
required to report himself.
662
00:34:32,722 --> 00:34:36,225
The Bar trusted him
to report his own misconduct,
663
00:34:36,259 --> 00:34:37,527
and he just didn't.
664
00:34:37,560 --> 00:34:40,797
Basically,
if you're unlucky enough
665
00:34:40,830 --> 00:34:46,069
to have touched Tom Girardi,
he probably had your wallet.
666
00:34:47,837 --> 00:34:53,676
Narrator:
But by 2019, the Ruigomez family
has had enough of Tom Girardi.
667
00:34:53,710 --> 00:34:57,547
They not only fire him,
they sue him.
668
00:34:57,580 --> 00:35:01,551
Archie: The day that
Kathy's family sued Tom
669
00:35:01,584 --> 00:35:02,885
was the beginning
of the end.
670
00:35:02,919 --> 00:35:04,487
That unraveled everything.
671
00:35:04,520 --> 00:35:06,923
Narrator: The judge issues
Erika Jayne-Girardi
672
00:35:07,023 --> 00:35:11,127
two subpoenas, asking for shared
financial records.
673
00:35:11,160 --> 00:35:15,698
That's what led to Erika
being served,
674
00:35:15,732 --> 00:35:20,236
and finding out that, really,
Tom has no money.
675
00:35:20,269 --> 00:35:22,405
Narrator: Though Erika
has publicly blamed
676
00:35:22,438 --> 00:35:26,376
Tom's alleged cheating
as her reason for divorcing him,
677
00:35:26,409 --> 00:35:29,312
Jay Edelson
doesn't buy it.
678
00:35:29,345 --> 00:35:32,915
It didn't make sense
until Erika filed for divorce.
679
00:35:32,949 --> 00:35:35,718
Then, we said, "That's what's
been happening the whole time.
680
00:35:35,752 --> 00:35:40,590
The old man went through
all the money."
681
00:35:40,623 --> 00:35:41,924
Narrator: Up next...
682
00:35:41,958 --> 00:35:45,294
Edelson: At that point,
he was known to be a crook.
683
00:35:45,328 --> 00:35:49,065
His whole reputation ended
like that.
684
00:35:56,821 --> 00:36:04,396
**
685
00:36:04,429 --> 00:36:08,667
Narrator:
A lawsuit against Tom Girardi,
brought by his former clients,
686
00:36:08,700 --> 00:36:12,237
the Ruigomez family,
has ruptured his reputation.
687
00:36:12,270 --> 00:36:14,873
And now, all hell
is breaking loose.
688
00:36:14,906 --> 00:36:17,876
Edelson:
When they brought their suit,
and started having success,
689
00:36:17,909 --> 00:36:19,544
the lenders start
cutting him off.
690
00:36:19,577 --> 00:36:22,480
He was relying on
a lot of outside money
691
00:36:22,514 --> 00:36:25,817
to keep it going,
and that stopped that.
692
00:36:25,850 --> 00:36:30,121
Narrator: Girardi is dangerously
deep in debt, baby,
693
00:36:30,155 --> 00:36:32,724
as he reveals
in a video deposition
694
00:36:32,757 --> 00:36:34,459
for the Ruigomez case.
695
00:36:52,410 --> 00:36:57,882
**
696
00:36:57,916 --> 00:37:01,152
Narrator: In Chicago,
Jay Edelson is deeply worried
697
00:37:01,186 --> 00:37:04,155
about his clients,
and is horrified to discover
698
00:37:04,189 --> 00:37:07,792
that they've received barely
half of their settlement money.
699
00:37:07,826 --> 00:37:10,161
And we now know the clients
were saying to them,
700
00:37:10,195 --> 00:37:12,597
were screaming
"Where's our money?"
701
00:37:16,368 --> 00:37:21,706
Narrator: On December 2, 2020,
Jay Edelson files a 30-page,
702
00:37:21,740 --> 00:37:25,176
five-count civil complaint
against Tom, Erika,
703
00:37:25,210 --> 00:37:28,079
and other Girardi-Keese
associates.
704
00:37:28,113 --> 00:37:30,281
Edelson: In my view,
it is a crime family.
705
00:37:30,315 --> 00:37:33,518
That's what it is.
That is how they operated.
706
00:37:33,551 --> 00:37:36,287
Narrator: Just two weeks later,
on December 14th,
707
00:37:36,321 --> 00:37:38,089
Judge Thomas Durkin
708
00:37:38,123 --> 00:37:41,393
calls Girardi's behavior
"unconscionable,"
709
00:37:41,426 --> 00:37:46,197
and demands $2 million to be
paid to the Lion Air families.
710
00:37:46,231 --> 00:37:49,534
But Tom Girardi
is broke.
711
00:37:49,567 --> 00:37:51,703
The court issued
the judgment.
712
00:37:51,736 --> 00:37:53,038
They froze his assets.
713
00:37:53,071 --> 00:37:55,140
A criminal investigation
started.
714
00:37:55,173 --> 00:37:57,275
He then was forced
into bankruptcy.
715
00:37:57,309 --> 00:38:00,679
And at that point,
he was known to be a crook.
716
00:38:00,712 --> 00:38:05,283
His whole reputation ended
like that, overnight.
717
00:38:05,317 --> 00:38:08,086
Narrator:
Over the next two years,
new civil lawsuits
718
00:38:08,119 --> 00:38:12,891
filed by Jay Edelson pour in,
alleging Tom embezzled funds,
719
00:38:12,991 --> 00:38:17,262
and Erika helped him hide
more than $20 million in assets
720
00:38:17,295 --> 00:38:20,699
through loans to her company,
EJ Global.
721
00:38:20,732 --> 00:38:23,401
Edelson: We sued under
federal statute RICO,
722
00:38:23,435 --> 00:38:26,871
which is the statute that
you use to go after the mob.
723
00:38:26,905 --> 00:38:30,408
We know that she knew that
the money had run out
724
00:38:30,442 --> 00:38:32,811
at a time when she was
pretending otherwise.
725
00:38:32,844 --> 00:38:34,546
That's why we've claimed
she was
726
00:38:34,579 --> 00:38:36,414
the front woman
of the enterprise.
727
00:38:36,448 --> 00:38:39,317
Narrator: And in a statement
to "American Greed,"
728
00:38:39,351 --> 00:38:41,586
Erika's attorney
vocally denies
729
00:38:41,619 --> 00:38:44,022
all the lawsuit's claims
against her,
730
00:38:44,022 --> 00:38:46,891
writing that they are
"disappointed with the focus
731
00:38:46,925 --> 00:38:51,329
on Erika, which has been used
as a distraction tactic.
732
00:38:51,363 --> 00:38:55,133
She had no knowledge of,
and did not participate in,
733
00:38:55,166 --> 00:38:57,035
any misconduct.
734
00:38:57,035 --> 00:38:59,070
And she turned over
her earnings
735
00:38:59,104 --> 00:39:00,972
to her husband
and his law firm."
736
00:39:01,006 --> 00:39:06,077
But Erika doesn't turn over
those infamous $750,000 earrings
737
00:39:06,111 --> 00:39:09,080
from Tom
until a court order demands
738
00:39:09,114 --> 00:39:11,349
she submit them
for auction.
739
00:39:12,484 --> 00:39:14,219
I'm angry.
I'm upset.
740
00:39:14,252 --> 00:39:17,055
Here you are,
flashing all this stuff off,
741
00:39:17,088 --> 00:39:19,257
and that shouldn't be
your stuff.
742
00:39:19,290 --> 00:39:20,992
All of that
should be gone.
743
00:39:20,992 --> 00:39:25,330
All of that should be money
towards the people who need it.
744
00:39:25,363 --> 00:39:29,567
Auctioneers sell them
for 312 grand.
745
00:39:29,601 --> 00:39:31,603
After months
in foreclosure,
746
00:39:31,636 --> 00:39:37,008
Tom's opulent Pasadena mansion
sells for $8 million.
747
00:39:37,008 --> 00:39:39,477
The expensive treasures
left inside
748
00:39:39,511 --> 00:39:42,280
fetch less than
a half a million.
749
00:39:42,314 --> 00:39:45,684
While the Girardis' divorce
languishes in limbo,
750
00:39:45,717 --> 00:39:48,453
Tom lives in
a memory-care facility,
751
00:39:48,486 --> 00:39:52,190
reportedly due to
advancing Alzheimer's disease.
752
00:39:52,223 --> 00:39:55,427
18 months after suspending
Girardi's law license
753
00:39:55,460 --> 00:39:57,662
due to his suspected
cognitive decline,
754
00:39:57,696 --> 00:40:01,566
the California State Bar
permanently disbars him,
755
00:40:01,599 --> 00:40:02,968
later writing that
756
00:40:03,001 --> 00:40:08,273
"Girardi caused irreparable harm
to hundreds of his clients."
757
00:40:08,306 --> 00:40:10,976
Tom does not represent
all lawyers.
758
00:40:11,009 --> 00:40:14,346
The vast majority of lawyers
I know get up in the morning,
759
00:40:14,379 --> 00:40:16,881
and do good work
on behalf of their clients.
760
00:40:16,915 --> 00:40:20,552
Narrator: Tom Girardi's attorney
responded to "American Greed"
761
00:40:20,585 --> 00:40:23,621
with "no comment."
762
00:40:23,655 --> 00:40:26,691
And though at least one court
has found no evidence
763
00:40:26,725 --> 00:40:29,494
that Erika participated
in any wrongdoing,
764
00:40:29,527 --> 00:40:32,430
in a suit brought by
Girardi's former colleagues,
765
00:40:32,464 --> 00:40:37,002
she and Tom still face
a slew of civil cases,
766
00:40:37,035 --> 00:40:38,603
including Edelson's.
767
00:40:38,637 --> 00:40:40,905
Whatever role she may have
played in this
768
00:40:40,939 --> 00:40:46,544
pales in comparison to the roles
played by numerous people
769
00:40:46,578 --> 00:40:49,247
whose names
we don't know.
770
00:40:49,280 --> 00:40:51,549
Tom would never have gotten
as far as he did
771
00:40:51,583 --> 00:40:55,086
without all of these other
people and enablers --
772
00:40:55,120 --> 00:40:58,089
the other attorneys,
the partners.
773
00:40:58,123 --> 00:40:59,924
Ever time
you pull a thread,
774
00:41:00,025 --> 00:41:03,395
it kind of goes in 15
different directions.
775
00:41:03,428 --> 00:41:05,397
That's the difficulty
in this case,
776
00:41:05,430 --> 00:41:10,435
that it really was a sprawling
criminal conspiracy for decades.
777
00:41:10,468 --> 00:41:14,439
Narrator: Girardi's estimated
debt is at least $100 million,
778
00:41:14,472 --> 00:41:19,311
with another $700 million
in lawsuit claims against him.
779
00:41:19,344 --> 00:41:23,181
The Jones family has launched
a GoFundMe campaign.
780
00:41:23,214 --> 00:41:25,917
And Holly wonders what justice
might look like
781
00:41:25,950 --> 00:41:27,686
for the Girardis.
782
00:41:27,719 --> 00:41:29,321
This may sound harsh,
783
00:41:29,354 --> 00:41:32,290
but I want them to live
like we have to live.
784
00:41:32,324 --> 00:41:37,128
And I want justice
for all the clients
785
00:41:37,162 --> 00:41:39,331
who have been
stolen from.
786
00:41:39,364 --> 00:41:42,100
Narrator: Jamie Ruigomez,
whose family is still fighting
787
00:41:42,133 --> 00:41:46,404
to secure the rest of Joe's
settlement, has another thought.
788
00:41:46,438 --> 00:41:48,206
Jamie:
I don't care how old he is.
789
00:41:48,239 --> 00:41:49,708
No one should be
above the law.
790
00:41:49,741 --> 00:41:52,477
He should be in prison.
That's where I want him.
791
00:41:52,510 --> 00:41:55,714
Narrator:
And that could be a possibility.
792
00:41:55,747 --> 00:41:59,617
In November 2022,
federal agents in Baltimore
793
00:41:59,651 --> 00:42:02,754
arrest Tom Girardi's
former C.F.O., Chris Kamon,
794
00:42:02,787 --> 00:42:05,590
on criminal charges
for wire fraud.
795
00:42:05,623 --> 00:42:09,594
Though they declined to comment,
FBI and IRS agents
796
00:42:09,627 --> 00:42:11,730
are reportedly
pursuing investigations
797
00:42:11,763 --> 00:42:15,033
against Girardi
and his associates.
798
00:42:15,033 --> 00:42:20,205
Would it be a happy ending
to see an octogenarian in prison
799
00:42:20,238 --> 00:42:22,273
after he's already
harmed everybody?
800
00:42:22,307 --> 00:42:24,476
The happiest
ending we could hope for
801
00:42:24,509 --> 00:42:26,945
is that people start
looking at the system,
802
00:42:27,045 --> 00:42:29,247
and changing the system,
803
00:42:29,280 --> 00:42:31,282
to prevent this from happening
to other people.
804
00:42:31,316 --> 00:42:33,084
There's gonna be
another Tom Girardi,
805
00:42:33,118 --> 00:42:36,054
and probably doing it
right now.
806
00:42:36,054 --> 00:42:43,795
**
807
00:42:43,828 --> 00:42:51,336
**
808
00:42:51,369 --> 00:42:54,906
-- Captions by VITAC --
809
00:42:54,939 --> 00:43:03,048
**
810
00:43:03,081 --> 00:43:11,456
**