Tom Girardi Ordered to Stay in Prison While Wire Fraud Appeal Proceeds
September 25, 2025 | JacobiJournal.com — Disgraced California attorney Tom Girardi will remain behind bars as his legal team pursues an appeal of his wire fraud conviction. A federal judge ruled that Girardi failed to show the “exceptional circumstances” required for release pending appeal, citing both the seriousness of the crime and the risk of flight. The court’s decision underscores the high threshold defendants must meet to secure release after a conviction. Judges typically look for compelling health concerns, significant new evidence, or legal errors that strongly suggest a conviction might be overturned—none of which Girardi successfully demonstrated. Background on the High-Profile Conviction Once celebrated for winning massive settlements in consumer lawsuits, Tom Girardi was convicted earlier this year of stealing millions in client settlement funds. Prosecutors demonstrated that he used interstate communications and banking systems to funnel those funds into personal expenses, meeting the legal threshold for federal wire fraud. His once-glittering reputation, enhanced by a high-profile marriage and appearances on reality television, crumbled as whistleblowers and investigative journalists exposed the scale of the fraud. The revelations prompted multiple civil suits, bankruptcy proceedings, and an eventual criminal indictment that brought decades of alleged misconduct into the spotlight. Court Cites Flight Risk and Financial Danger In the September 22 order, the judge highlighted that Girardi’s past deception and access to hidden resources made him a potential flight risk. The court also emphasized the need to protect victims and ensure restitution while the appeal moves forward. Federal prosecutors argued that Tom Girardi still has the connections and financial know-how to evade authorities or hide remaining assets. Keeping him in custody, they said, prevents additional harm to the victims and preserves the integrity of ongoing restitution efforts. Appeal Faces Steep Challenges Girardi’s attorneys say they will continue to challenge the conviction, but legal experts note that overturning a federal jury verdict is notoriously difficult. The appellate process is expected to stretch well into 2026, keeping Girardi in a federal Bureau of Prisons facility during that time. Appellate courts typically focus only on whether legal errors affected the trial’s outcome, rather than re-examining facts. Without clear evidence of procedural mistakes or constitutional violations, analysts believe Girardi’s chances of success remain slim. For an authoritative overview of wire fraud laws and penalties, visit the U.S. Department of Justice’s wire fraud resource page. FAQs: About the Tom Girardi Prison Appeal Why did the judge refuse to release Tom Girardi during the appeal? The court ruled that Girardi could not show exceptional circumstances and posed a flight risk, making release inappropriate. What crimes was Tom Girardi convicted of? He was found guilty of federal wire fraud for misappropriating millions of dollars from his own clients’ settlement funds. How long could the appeal process take? Federal appeals can take many months or even years, depending on the complexity of the case and the appellate court’s schedule. What happens to restitution for Girardi’s victims? With Girardi in custody, restitution and civil claims can continue without interruption, giving victims a better chance of recovering funds. Subscribe now to JacobiJournal.com for timely updates on high-profile legal cases. Get expert analysis, courtroom developments, and exclusive insights delivered directly to your inbox. 🔎 Read More from JacobiJournal.com:
Deliveries Scam Plea Entered by California DoorDash Driver
May 16, 2025 | JacobiJournal.com – DoorDash delivery scam leads to $2.5M fraud plea: A former DoorDash driver has pleaded guilty in federal court to orchestrating a sophisticated fraud scheme that exploited the platform’s internal systems. The DoorDash delivery scam, which spanned from 2020 to 2021, resulted in over $2.5 million in losses and revealed alarming vulnerabilities within the gig economy’s infrastructure. Prosecutors said the driver used insider access and backend manipulation to reroute high-value customer orders, triggering automated payments for services never rendered. How DoorDash Delivery Scam Exploited Insider Access to Steal Millions Sayee Chaitanya Reddy Devagiri, 30, of Newport Beach, California, entered a guilty plea on Tuesday in San Jose federal court to one count of conspiracy to commit wire fraud. Prosecutors said Devagiri conspired with three others between 2020 and 2021 to exploit DoorDash’s internal systems for personal gain. Specifically, Devagiri used customer accounts to place expensive orders. He then accessed DoorDash’s backend software using credentials from a cooperating employee. After that, he reassigned the orders to fraudulent driver accounts he and his co-conspirators controlled. Orders Marked as Delivered—But Never Were Once the orders were rerouted, Devagiri falsely marked them as delivered. This action triggered automatic payments from DoorDash to the fake driver accounts. To repeat the fraud, he reset the order status from “delivered” to “in process” and rerouted the same orders back to those accounts. Notably, the scam relied heavily on insider access, allowing Devagiri and others to bypass typical safeguards. As a result, the group repeatedly collected payments for services they never provided. Deliveries Scam Plea Additional Guilty Pleas Reveal Coordinated Plot The now-former DoorDash employee who supplied system access pleaded guilty in November 2023 to conspiracy to commit wire fraud. He admitted to helping execute the fraud scheme. Devagiri is now the third person convicted in this wide-reaching conspiracy. Sentencing Scheduled for September Devagiri faces up to 20 years in federal prison and a $250,000 fine. His sentencing is set for September 16. The case raises urgent questions about how delivery platforms can better protect internal systems from misuse. Get the full details directly from the U.S. Department of Justice. FAQs: How did the DoorDash delivery scam work? The scam involved a former DoorDash driver who, with insider help, accessed backend systems to reroute high-value orders to fake driver accounts. These orders were falsely marked as delivered, triggering automatic payments from DoorDash for undelivered services. The scheme ultimately defrauded the company of more than $2.5 million. What vulnerabilities did the DoorDash delivery scam expose? The DoorDash delivery scam revealed critical weaknesses in internal system safeguards, particularly the risks posed by employee access to backend software. It highlighted the need for stronger cybersecurity controls in gig economy platforms to prevent similar insider-led fraud schemes. What could have happened if the DoorDash delivery scam remained undetected? If the DoorDash delivery scam had gone unnoticed, fraudulent payouts could have continued unchecked, resulting in significantly higher financial losses and compromised customer trust. It would have also signaled to bad actors that gig economy platforms are vulnerable, potentially encouraging similar insider schemes across the industry. Exposing the fraud was critical to preserving operational integrity, deterring future abuse, and prompting stronger cybersecurity reforms. Where can I report suspected delivery platform fraud like the DoorDash delivery scam? If you suspect fraudulent activity involving delivery platforms, you can report it to the National Center for Disaster Fraud (NCDF) via the DOJ’s hotline at 866-720-5721 or through the online complaint form at justice.gov/disaster-fraud. For corporate fraud or insider schemes, tips can also be submitted to the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov. Prompt reporting helps prevent further abuse and protects consumers and companies alike. Stay informed on emerging fraud schemes and compliance risks in the gig economy. Subscribe to JacobiJournal.com for expert updates on federal prosecutions, platform vulnerabilities, and regulatory crackdowns. 🔎 Read More from JacobiJournal.com: