June
2022

A report on where
things
stand



Tom Girardi Is Disbarred…Michael Avenatti Sentenced to Four Years for Cheating Stormy Daniels; Pleads Guilty in Central District of California to Five Felonies… Judge Amy Hogue Retires… Roopali Desai Nominated to Ninth Circuit Seat



Judges, Lawyers Under Scrutiny


Michael J. Avenatti
Attorney/Convict

Michael J. Avenatti

Suspended California lawyer Michael Avenatti on June 16 pled guilty in the U.S. District Court for the Central District of California to four counts of wire fraud—entailing matters in which he embezzled millions of dollars  from clients—and one count of attempting to obstruct the administration of the Internal Revenue Code. The latter charge relates to an effort to cheat the government out of about $5 million.

Senior Judge James V. Selna slated a sentencing hearing for Sept. 19. Avenatti faces a maximum sentence of 83 years in prison.

The Department of Justice later announced it would not pursue 31 remaining counts of wire-, bank-, and tax-fraud.

On June 2, Avenatti was sentenced to four years in prison by U.S. District Court Judge Jesse Furman of the Southern District of New York for fraud and aggravated identity theft in connection with cheating former client Stormy Daniels out of nearly $300,000. He was convicted of the charges on Feb. 4.

The money Avenatti pilfered was an advance to Daniels in connection with her book, “Full Disclosure,” in which she tells of her affair with then-President Donald Trump. Avenatti forged her signature on a letter to her literary agent, directing that payments be sent to a bank account he controlled. Avenatti represented himself in the proceeding.

In an email on May 13, he told Daniels: “I am truly sorry.”

On July 8, 2021, Avenatti was sentenced to two-and-a-half years in prison by District Court Judge Paul G. Gardephe, also of the Southern District of New York, based on his effort to exact a sum of about $25 million from Nike by threatening to blacken its reputation in litigation if it did not comply.

State Bar disciplinary charges were filed July 29, 2019. Avenatti was placed on interim suspension on June 4, 2020 based on his Feb. 14, 2019 conviction in the Nike case.

Disbarment is inevitable.

The lawyer handled a number of high-profile cases, including representation of Daniels—whose actual name is Stephanie Clifford—in her actions against Trump in an effort to skirt a 2016 nondisclosure agreement she signed in connection with a $130,000 pay-off to her for agreeing not to talk publicly of their 2006 affair. He also handled her action against the then-president for defamation.

In 2018, he took preliminary steps toward launching a presidential bid in 2018, but decided against running.

Thomas V. Girardi
Former Practicing Lawyer

Thomas V. Girardi

Thomas V. Girardi was disbarred by the California Supreme Court on June 1, two days before he turned 83. He was ordered to pay $2,282,507 plus 10 percent interest to four children of the victims of a fatal air crash, although his ability to make restitution of any of the settlement funds he stole is doubtful.

Girardi is a conservatee and is in bankruptcy.

He is being divorced by his trophy wife, actress/singer Erika Jayne, and has moved from his Pasadena mansion—which was seized by a bank—into an assisted living facility.

His reputation is irredeemable based on litigation in which it is claimed that he and his firm stole millions of dollars in clients’ settlement funds.

The State Bar announced on Jan. 24 that it will intensify its efforts to determine whether disciplinary action against Girardi was averted, through the years, by virtue of Girardi’s influence and the connections he had within the organization. The downtown Los Angeles law firm of Halpern May Ybarra Gelberg LLP was hired to conduct a probe.

A state auditor’s report, issued April 14, declares that the State Bar is doing a shoddy job of dealing with attorneys who time and again breach ethical standards, with repeated complaints against the violators resulting in no action. Girardi was not named in the report, but the Los Angeles Times, in a news story on the report, said:

“The audit of the State Bar was ordered last year by the Legislature in the wake of a Los Angeles Times investigation that documented how the now-disgraced attorney Tom Girardi cultivated close relationships with the agency and kept an unblemished law license despite over 100 lawsuits against him or his firm — with many alleging misappropriation of client money.”

It noted:

“That Girardi's serial misconduct went unchecked for decades has forced a reckoning among the legal establishment.”

An initial peek by the State Bar into its inaction in the face of complaints against Girardi led the regulatory agency to admit in July 2021, that an internal review “revealed mistakes made in some investigations over the many decades of Mr. Girardi’s career going back some 40 years and spanning the tenure of many Chief Trial Counsels.” The bland admission of “mistakes” was widely seen as inadequate absent elaboration.

 A statement by State Bar Board of Trustees Chair Ruben Duran, who heads Best & Krieger LLP’s Ontario office, suggests that the State Bar is now set to dig more deeply than before. He said:

“Mark our words: we will go wherever the evidence leads us.”
Duran also commented:

“The State Bar Board leadership and staff take very seriously the immense harm done by Thomas Girardi to innocent victims. We have been proactively doing everything in our power to learn from the past and do better in the future to prevent harms like this from recurring.

“This necessarily includes assessing whether intentional wrongdoing by anyone associated with the State Bar may have influenced how complaints against Girardi were handled.”

While Duran expressed a resolve to determine what occurred when complaints about Girardi were received, he did not provide hope that much of what is learned will be shared with the public. To the contrary, he said:

“Details of the investigation, including details of past closed complaints and investigations, must remain confidential to comply with the law and to give this investigation the greatest chance of success.”

The probe will doubtlessly include questioning of Tom Layton who, while an investigator for the State Bar, acted as an aide to Girardi, frequently accompanying the high-profile lawyer at social events; attorney Walter Lack and former State Bar President Howard Miller, who worked with Girardi on a case that resulted in an ethics probe by the Ninth U.S. Circuit Court of Appeals (with a determination that Girardi and Lack had committed misconduct); and former State Bar Court prosecutor Dale G. Nowicki who had a clandestine professional relationship for more than a year with Girardi’s son-in-law, attorney David Lira.


Judiciary: Vacancies, Appointments




Ninth U.S. Circuit Court of Appeals

President Joseph Biden on June 15 nominated Arizona attorney Roopali H. Desai to replace Judge Andrew Hurwitz, 74, an appointee of President Barack Obama. Hurwitz, a former Arizona Supreme Court justice, will assume senior status upon confirmation of his successor.

Two other members of the Ninth Circuit, who were appointed by Democratic presidents, have announced they will assume senior status upon the confirmation of a replacement. They are former Chief Judge Sidney Thomas, 68, and Judge M. Margaret McKeown, 70, both appointed by President Bill Clinton.

District Court Judge Salvador Mendoza Jr. of the Eastern District of Washington was nominated on April 25 to succeed McKeown. A Senate Judiciary Committee hearing was held May 11, and the committee made a favorable recommendation on June 9.

 

There are four vacancies.

Judge John A. Kronstadt, 70, retired April 1. An appointee of then-President Barack Obama, he assumed office in 2011.

Two doomed nominations are those of Los Angeles Superior Court Judge Hernan D. Vera, chosen Sept. 20 for the seat previously occupied by Judge Margaret Morrow who went on senior status Oct. 29, 2015, and U.S. Magistrate Judge Kenly Kiya Kato of the Central District of California, picked on Dec. 15 to assume the office of Judge Virginia Phillips, a former chief judge, who retired on Feb. 14, on her 65th birthday. The Senate Judiciary Committee did not report favorably on the nominations.

Judge Beverly Reid O’Connell died on Oct. 8, 2017, at the age of 52. No successor has been named.



There are no vacancies

Second District

There are three vacancies. Justices Laurie Zelon of Div. Seven and Halim Dhanidina of Div. Three retired and Justice Jeffrey Johnson of Div. One was removed by the Commission on Judicial Performance based on a pattern of improper sexual advances and other misconduct.

Sitting pro tem through Aug. 20 is Los Angeles Superior Court Judge Rashida Adams.


Los Angeles County

Judge Amy Hogue retires today. Judge Holly Kendig officially retired June 16, and Judge Stephen M. Moloney has left the court, with an official retirement date of June 3.

There are six contests for Superior Court open seats on the Nov. 8 ballot.

On June 7, two judges—David Gelfound and Carol Elswick, easily beat off challenges. Sherilyn Peace Garnett’s name appeared on the ballot, notwithstanding her confirmation as a U.S. District Court judge, and she won over two attorneys; her replacement will be named by Gov. Gavin Newsom.



 

 

 


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