In a dramatic turn in the ongoing fallout from Tom Girardi’s downfall, bankruptcy trustees for the defunct Girardi Keese law firm and New York attorney Joseph DiNardo have launched a new lawsuit accusing DiNardo and his associates of misappropriating over $3.1 million meant for a gas explosion victim — and allegedly funneling it into food and beverage ventures.
Filed Thursday in the U.S. Bankruptcy Court for the Central District of California, the complaint paints a picture of a complex web of embezzlement, hidden partnerships, and fraudulent transfers that allegedly link Girardi’s firm to businesses far outside the realm of law — including restaurants and a holding company called CDBD Holdings Inc.
The Alleged Money Trail: From Settlement Funds to Food Chains
According to the lawsuit, the $3.16 million in question represents half of a $6.3 million transfer Girardi Keese made to the DiNardo Law Firm, drawn from a larger $10 million pool of embezzled settlement money.
The trustees allege those funds were then funneled to Christopher Diamantis, a co-owner with DiNardo in an entity called D&D II, which subsequently used the money to bankroll food and beverage ventures — notably, loans exceeding $2.5 million to the Blue Dog eatery between 2013 and 2015.
By 2022, D&D II reportedly assigned its rights to a Blue Dog loan note to CDBD Holdings, a company owned and controlled by Diamantis, without any compensation in return.
“The transfers and the CDBD transfers were made with actual intent to hinder, delay, or defraud creditors,” the trustees allege, adding that Girardi and DiNardo acted while insolvent or pushed themselves into insolvency as a result.
