California
Former celebrity lawyer gets 7 years in prison for stealing millions from clients
LOS ANGELES (AP) — A federal judge sentenced disbarred celebrity lawyer Tom Girardi to seven years and three months in prison on Tuesday for embezzling tens of millions of dollars from his clients, including several with severe physical injuries and families of people killed in accidents.
U.S. District Judge Josephine L. Staton also ordered Girardi, 86, to pay a $35,000 fine and $2.3 million in restitution to former clients. A jury in August found him guilty of four counts of wire fraud, and he could have been sentenced to up to 80 years in prison.
Girardi is the estranged husband of “The Real Housewives of Beverly Hills” star Erika Jayne and appeared on the show himself dozens of times between 2015 and 2020.
He was once among the most prominent lawyers in the nation, often representing victims of major disasters against powerful companies. One lawsuit against California’s Pacific Gas and Electric utility led to a $333 million settlement and was portrayed in the 2000 Julia Roberts film “Erin Brockovich.”
But his law empire collapsed, and he was disbarred in California in 2022 over client thefts.
Girardi has been diagnosed with Alzheimer’s disease, and issues with his memory led another court to put him in a conservatorship under his brother. But on Monday, Staton ruled that he was mentally competent to be sentenced, just as she had previously found him mentally competent to stand trial.
The judge had allowed him to remain free until his sentencing but ordered him to surrender to authorities by July 17.
An email to Girardi’s attorney seeking comment on the conviction was not immediately answered.
Former clients who testified against Girardi at his trial included an Arizona woman whose husband was killed in a boat accident and victims who were burned in a 2010 gas pipeline explosion in San Bruno, south of San Francisco.
Prosecutors played jurors voicemails in which Girardi gave a litany of false reasons money that a court had awarded could not be paid, including tax and debt obligations and judge authorizations. He frequently told them, “Don’t be mad at me.”
Pennsylvania
State sues USDA over funding cut to a $1 billion food aid program
HARRISBURG, Pa. (AP) — Pennsylvania sued the U.S. Department of Agriculture on Wednesday, saying the agency, under President Donald Trump, had illegally cut off funding to it through a program designed to distribute more than $1 billion in aid to states to purchase food from farms for schools, child care centers, and food banks.
The lawsuit in federal court, announced by Gov. Josh Shapiro, a Democrat, comes three months after the USDA advised states that it was ending the pandemic-era assistance program because it no longer reflected agency priorities.
“I don’t get what the hell their priorities are if not feeding people and taking care of our farmers,” Shapiro said at a news conference at a food bank warehouse in Philadelphia.
The USDA did not immediately respond to a request for comment Wednesday.
The lawsuit, filed in federal court in Harrisburg, asks the court to reverse the USDA’s decision to end the reimbursement program.
Shapiro’s administration, in the lawsuit, said the USDA’s termination of the contract was illegal, saying the USDA didn’t explain why it no longer reflected agency priorities and that the contract didn’t expressly allow the USDA to terminate it for those reasons.
Shapiro said he was confident that Pennsylvania would win the lawsuit.
“A deal is a deal,” Shapiro told the news conference. “They made a deal with our farmers, they made a deal with Pennsylvania and they broke it.”
The loss to Pennsylvania is $13 million under a three-year contract, money that the state planned to use to buy food from farms to stock food banks. States also use the money to buy food from farms for school nutrition programs and child care centers. Purchases include commodities such as cheese, eggs, meat, fruits and vegetables.
The department, under then-President Joe Biden, announced a second round of funding through the program last year.
Iowa
Amusement park’s former owner settles lawsuit over boy’s drowning
An Iowa amusement park’s former operator has agreed to pay an undisclosed amount to settle a lawsuit filed by the family of an 11-year-old boy who drowned on a water ride in 2021.
A company that previously owned Adventureland park in the Des Moines suburb of Altoona, along with its former CEO and three managers, reached a settlement with the family of Michael Jaramillo on Sunday. Jury selection had been scheduled to start Monday for a trial over the lawsuit brought by the family. The settlement terms are confidential.
Michael Jaramillo, his parents, two brothers and another family member were strapped into a 1,700-pound (770-kilogram) raft on the Raging River ride on July 3, 2021, when it flipped over. All six hit their heads on the surface under the water, but Michael Jaramillo and one of his brothers could not get out of their seatbelts and were trapped, head-down, underwater for about 10 minutes, according to the family.
The lawsuit alleged that for years, Adventureland failed to properly maintain and repair its rides, including the Raging River. It also said the park continued to operate the water ride on the day of the accident despite reports of serious problems.
The park’s former owner, Adventure Lands of America, former CEO Michael Krantz, and the three managers, denied that the ride had been operated improperly or insufficiently supervised. But Fred Dorr, an attorney for the family, said Tuesday that their lawyers believe they built a strong case that the park and its employees were responsible.
“Imagine the terror going on in those kids’ minds,” Dorr said. “And then you turn to the jury and say, ‘What’s that worth, to watch your child die like that?”
An attorney for Adventure Lands of America did not immediately return a telephone message seeking comment Tuesday. However, in answering the lawsuit, the defendants said the accident resulted from “a series of unexpected and intended factors” and that, in the 38 years the ride operated before the accident, no raft had overturned.
Krantz is a member of a Des Moines-area family that began operating Adventureland in the 1970s and sold it and other affiliated assets months after the accident to the subsidiary of an international amusement park company based in Spain.
In March, Herschend, a company based in the Atlanta area, purchased the Spanish company’s U.S. properties, including Adventureland. Herschend operates the Dollywood theme park in Tennessee and Silver Dollar City near Branson, Missouri.
Former celebrity lawyer gets 7 years in prison for stealing millions from clients
LOS ANGELES (AP) — A federal judge sentenced disbarred celebrity lawyer Tom Girardi to seven years and three months in prison on Tuesday for embezzling tens of millions of dollars from his clients, including several with severe physical injuries and families of people killed in accidents.
U.S. District Judge Josephine L. Staton also ordered Girardi, 86, to pay a $35,000 fine and $2.3 million in restitution to former clients. A jury in August found him guilty of four counts of wire fraud, and he could have been sentenced to up to 80 years in prison.
Girardi is the estranged husband of “The Real Housewives of Beverly Hills” star Erika Jayne and appeared on the show himself dozens of times between 2015 and 2020.
He was once among the most prominent lawyers in the nation, often representing victims of major disasters against powerful companies. One lawsuit against California’s Pacific Gas and Electric utility led to a $333 million settlement and was portrayed in the 2000 Julia Roberts film “Erin Brockovich.”
But his law empire collapsed, and he was disbarred in California in 2022 over client thefts.
Girardi has been diagnosed with Alzheimer’s disease, and issues with his memory led another court to put him in a conservatorship under his brother. But on Monday, Staton ruled that he was mentally competent to be sentenced, just as she had previously found him mentally competent to stand trial.
The judge had allowed him to remain free until his sentencing but ordered him to surrender to authorities by July 17.
An email to Girardi’s attorney seeking comment on the conviction was not immediately answered.
Former clients who testified against Girardi at his trial included an Arizona woman whose husband was killed in a boat accident and victims who were burned in a 2010 gas pipeline explosion in San Bruno, south of San Francisco.
Prosecutors played jurors voicemails in which Girardi gave a litany of false reasons money that a court had awarded could not be paid, including tax and debt obligations and judge authorizations. He frequently told them, “Don’t be mad at me.”
Pennsylvania
State sues USDA over funding cut to a $1 billion food aid program
HARRISBURG, Pa. (AP) — Pennsylvania sued the U.S. Department of Agriculture on Wednesday, saying the agency, under President Donald Trump, had illegally cut off funding to it through a program designed to distribute more than $1 billion in aid to states to purchase food from farms for schools, child care centers, and food banks.
The lawsuit in federal court, announced by Gov. Josh Shapiro, a Democrat, comes three months after the USDA advised states that it was ending the pandemic-era assistance program because it no longer reflected agency priorities.
“I don’t get what the hell their priorities are if not feeding people and taking care of our farmers,” Shapiro said at a news conference at a food bank warehouse in Philadelphia.
The USDA did not immediately respond to a request for comment Wednesday.
The lawsuit, filed in federal court in Harrisburg, asks the court to reverse the USDA’s decision to end the reimbursement program.
Shapiro’s administration, in the lawsuit, said the USDA’s termination of the contract was illegal, saying the USDA didn’t explain why it no longer reflected agency priorities and that the contract didn’t expressly allow the USDA to terminate it for those reasons.
Shapiro said he was confident that Pennsylvania would win the lawsuit.
“A deal is a deal,” Shapiro told the news conference. “They made a deal with our farmers, they made a deal with Pennsylvania and they broke it.”
The loss to Pennsylvania is $13 million under a three-year contract, money that the state planned to use to buy food from farms to stock food banks. States also use the money to buy food from farms for school nutrition programs and child care centers. Purchases include commodities such as cheese, eggs, meat, fruits and vegetables.
The department, under then-President Joe Biden, announced a second round of funding through the program last year.
Iowa
Amusement park’s former owner settles lawsuit over boy’s drowning
An Iowa amusement park’s former operator has agreed to pay an undisclosed amount to settle a lawsuit filed by the family of an 11-year-old boy who drowned on a water ride in 2021.
A company that previously owned Adventureland park in the Des Moines suburb of Altoona, along with its former CEO and three managers, reached a settlement with the family of Michael Jaramillo on Sunday. Jury selection had been scheduled to start Monday for a trial over the lawsuit brought by the family. The settlement terms are confidential.
Michael Jaramillo, his parents, two brothers and another family member were strapped into a 1,700-pound (770-kilogram) raft on the Raging River ride on July 3, 2021, when it flipped over. All six hit their heads on the surface under the water, but Michael Jaramillo and one of his brothers could not get out of their seatbelts and were trapped, head-down, underwater for about 10 minutes, according to the family.
The lawsuit alleged that for years, Adventureland failed to properly maintain and repair its rides, including the Raging River. It also said the park continued to operate the water ride on the day of the accident despite reports of serious problems.
The park’s former owner, Adventure Lands of America, former CEO Michael Krantz, and the three managers, denied that the ride had been operated improperly or insufficiently supervised. But Fred Dorr, an attorney for the family, said Tuesday that their lawyers believe they built a strong case that the park and its employees were responsible.
“Imagine the terror going on in those kids’ minds,” Dorr said. “And then you turn to the jury and say, ‘What’s that worth, to watch your child die like that?”
An attorney for Adventure Lands of America did not immediately return a telephone message seeking comment Tuesday. However, in answering the lawsuit, the defendants said the accident resulted from “a series of unexpected and intended factors” and that, in the 38 years the ride operated before the accident, no raft had overturned.
Krantz is a member of a Des Moines-area family that began operating Adventureland in the 1970s and sold it and other affiliated assets months after the accident to the subsidiary of an international amusement park company based in Spain.
In March, Herschend, a company based in the Atlanta area, purchased the Spanish company’s U.S. properties, including Adventureland. Herschend operates the Dollywood theme park in Tennessee and Silver Dollar City near Branson, Missouri.
