Jones Day Suspended for $40 Million in False Legal Bills

Jones Day Suspended for $40 Million in False Legal Bills

Escorts, kickbacks and a Tesla: New details in scandal and fraud at Tom Girardi’s law firm

It has been almost a year since the FBI and New York state authorities uncovered allegations that Girardi’s firm, Jones Day, had handled $40 million in phony legal bills to corporations, which in fact owed the company hundreds of thousands of dollars.

Federal investigators say they have uncovered more evidence against Jones Day’s former managing partner, Tom Girardi, including kickbacks to a public relations firm for a real estate deal that never took place.

The firm’s board was suspended and its founder, Girardi, quit. Jones Day announced it plans to appeal the suspension to the US Supreme Court.

This article originally appeared on VICE in February 2017.

On Wednesday, Jones Day announced it will appeal the firm’s suspension to the US Supreme Court.

Tom Girardi at a shareholder meeting. [Photo: Jones Day via Getty Images]

The scandal broke on January 7, 2017, when it was revealed that the firm was billing clients $40 million for un-rendered legal work that was never performed. The bills were paid for by corporate clients allegedly bribed, often with kickbacks, by Girardi. Some of these corporate clients filed suit claiming damages and Girardi walked away.

The FBI and New York state authorities announced last month that Girardi has been arrested on charges of “conspiracy to commit criminal fraud” and “corrupt practice of law”.

The legal bills, which also cost consumers and businesses hundreds of thousands of dollars in legal fees, have already cost almost $200,000 in legal expenses.

But the company has been sued for $40 million after the FBI and state authorities found numerous allegations of fraud.

On Wednesday, The New York Times reported that the FBI has obtained email exchanges showing Girardi made kickbacks to a public relations firm, K2 Communications, for a real estate deal that never happened.

One of the emails, dated September 14, 2011, shows Girardi’s friend, Tom DiNapoli, requesting that the $2 million in kickbacks be included in the firm’s fees.

“How are you with the $2 million?” DiNapoli allegedly wrote to K2’s owner, Jeff Schorr.

“I’m good,” replied Schorr.

“I will have more,” Gir

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