Former Accounting Chief at Girardi Keese Law Firm Pleads Guilty to Multi-Million Dollar Embezzlement Scheme
Christopher Kazuo Kamon, the former head of the accounting department at the now-shuttered Girardi Keese law firm, has admitted his role in a large-scale embezzlement scheme, pleading guilty to two counts of wire fraud in a Los Angeles federal court. The charges relate to Kamon’s orchestration of a complex financial fraud that resulted in the misappropriation of tens of millions of dollars from both the firm’s clients and the law firm itself. Kamon’s guilty plea is a critical part of unraveling the financial misconduct that contributed to the firm’s downfall.
Girardi Keese Embezzlement Scheme: Legal Consequences and Client Impact
Kamon, aged 51, held a crucial position as the head of accounting at Girardi Keese, a once-leading plaintiffs’ personal injury firm in Los Angeles. His role, spanning from 2004 to 2020, involved overseeing the firm’s financial records and managing client trust accounts, which are legally required to keep client funds separate from the firm’s operating funds. Kamon’s responsibilities placed him in a key position to manipulate the flow of settlement funds intended for the firm’s clients, many of whom were victims of severe accidents and corporate negligence.
Working closely with Thomas Vincent Girardi, the firm’s founder, Kamon engaged in a years-long scheme that saw client settlement money systematically diverted for purposes other than those intended. Starting around 2010, Kamon and Girardi began using settlement funds to pay for the firm’s operating expenses, such as payroll and credit card bills, and for personal expenditures. To facilitate this, they used fraudulent invoices issued by fictitious vendors, enabling Kamon to funnel these misappropriated funds into projects for his personal benefit, such as construction on his properties in Encino and Palos Verdes. The scheme continued until January 2021, when Girardi Keese was forced into bankruptcy due to mounting debts, leading to the firm’s dissolution.
High-Profile Victims and Embezzled Settlement Funds
Among those defrauded in the Girardi Keese embezzlement scheme was a client who had suffered severe burns in the 2010 natural gas pipeline explosion in San Bruno, California. This explosion was a devastating incident that resulted in significant injuries and property damage, leading to a lengthy legal battle. The client’s case ultimately resulted in a $53 million settlement in 2013, which was meant to provide financial relief for the extensive injuries suffered.
However, Kamon and Thomas Vincent Girardi diverted $28 million of this settlement for other purposes. Instead of transferring the funds to the client, they misappropriated the money, using it to pay off debts of the law firm and to settle payments to other clients whose settlements had previously been misused. To obscure their actions, Kamon and Girardi deceived the client, claiming that the settlement funds had been placed in a separate interest-bearing account—a claim that was entirely false, as no such account existed.
To maintain the illusion, they issued “lulling payments”—partial disbursements meant to reassure the client. This included a $2.5 million payment in 2019, purportedly part of the settlement. However, this payment actually came from funds belonging to other clients, further exacerbating the misuse of client money and compounding the financial misconduct.
Kamon’s Guilty Plea Highlights Severe Penalties for Wire Fraud and Fiduciary Breaches
Kamon’s guilty plea to two counts of wire fraud illustrates the serious legal consequences for those who abuse their position of trust within a law firm. Wire fraud, as defined under 18 U.S. Code § 1343, involves the use of electronic communications to facilitate a scheme to defraud others of money or property. Given the magnitude of the embezzlement—involving tens of millions of dollars—and the harm inflicted upon vulnerable clients, Kamon faces up to 20 years in federal prison for each count, potentially resulting in a maximum sentence of 40 years.
Beyond the federal charges, Kamon’s conduct represents a profound breach of fiduciary duty. As the head of the firm’s accounting department, he was entrusted with managing client settlement funds and maintaining the integrity of financial records. His actions directly violated the duty of loyalty and care owed to clients, fundamental principles under California law, particularly those outlined in California Business and Professions Code § 6068(e), which stresses an attorney’s obligation to protect client property. By diverting client funds for personal use and the firm’s expenses, Kamon not only breached this trust but also engaged in deliberate deception to conceal the misappropriation, showing a disregard for ethical standards expected of legal professionals.
Legal Fallout from Girardi Keese: Kamon’s Role in Multi-Million Dollar Fraud
The collapse of Girardi Keese and the criminal activities of its senior members, including Christopher Kazuo Kamon, have had far-reaching consequences for the California legal community. The case has highlighted significant oversight failures by the State Bar of California, which has faced scrutiny for not taking earlier action against Thomas Vincent Girardi despite longstanding allegations of misconduct. Girardi was only disbarred in July 2022, long after client complaints and financial irregularities had surfaced.
This scandal has forced a reassessment of how the State Bar monitors attorney conduct, particularly regarding the management of client trust accounts. The misuse of funds by Girardi and Kamon, which persisted for over a decade, has led to calls for tighter regulations and enhanced oversight mechanisms to safeguard clients’ financial interests. These measures aim to ensure that client trust funds are properly protected and that similar abuses do not happen again in the future.
January 2025 Sentencing Awaits Kamon in Girardi Keese Fraud Scandal
As Christopher Kazuo Kamon awaits sentencing on January 31, 2025, he faces the possibility of a significant prison term, reflecting the scale of the embezzlement and the harm caused to numerous victims. Given that each count of wire fraud under 18 U.S. Code § 1343 carries a potential 20-year sentence, Kamon’s maximum exposure is 40 years in federal prison.
The legal challenges for Kamon and other former Girardi Keese associates are not limited to California. Kamon, along with Thomas Girardi and David R. Lira (Girardi’s son-in-law), is facing separate federal fraud charges in Chicago. These charges involve allegations of additional misconduct, including defrauding clients across state lines, with a trial set for March 3, 2025. The outcome of these proceedings could further complicate Kamon’s legal battles and potentially result in additional penalties, making the January sentencing only part of a broader series of consequences.
Defending Clients Against Complex Financial Crime Allegations
With over 20 years of experience, Attorney Arash Hashemi is committed to defending individuals facing serious financial misconduct charges, like those involved in the Girardi Keese case. We understand how overwhelming it can be when facing accusations like embezzlement or fraud, and we’re here to protect your rights and build a strong defense.
If you or someone you know is up against charges related to financial misconduct, call us today at (310) 448-1529 or schedule a consultation with Attorney Hashemi through our secure online system. We’ll discuss your situation in detail and craft a tailored strategy to fight these charges and protect your future.
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