Trial date set on claims bank abetted a Girardi fraud

A trial date has been set in the lawsuit against Nano Banc for approving a controversial loan to Thomas V. Girardi.

The jury trial is scheduled for April 26 next year. On Friday, Los Angeles-based lawyer V. Andre Rekte said he intends to dismiss Girardi to solely pursue Nano Banc. Rekte represents Girardi's longtime law partner, Robert M. Keese and the widow of a former firm partner.

"We're working on a deal with the private trustee for Tom," Rekte said, referring to Jason M. Rund, the trustee handling Girardi's personal bankruptcy in the Central District of California. "And if that deal goes through, then we'll dismiss Girardi from the lawsuit and just proceed directly only against Nano Banc."

According to the lawsuit, Girardi put out a trust deed on the law firm's office building at 1126 Wilshire Boulevard in Los Angeles without the partners' approval.

The plaintiffs allege Girardi took out loans and liens estimated at $7.46 million with Nano Banc on the unencumbered office building. Keese et al. v. Girardi et al., 2OSTCV47657 (LA County Sup. Ct, filed Dec. 14, 2020).

According to Rekte, Nano Banc aided and abetted fraud by relying on a one-page partnership agreement, signed only by Girardi. The lawsuit claimed the partners have lost more than $400,000 each because of the loan.

Lawyers for Nano Banc could not be reached for comment. But in a demurrer filed in June, Early Sullivan Wright Gizer & McRae LLP partner, Diane M. Luczon, disputed the fraud claims.

"It is indisputable that Girardi had the sole authority to act on behalf of the Partnership and therefore was authorized to execute the loan agreements that encumbered the Partnership's property," Luczon wrote in the demurrer. According to court documents, in an email to Rekte, Luczon claimed the deeds of trust are properly recorded against the building.

Apart from the building currently under litigation, Girardi Keese had another connecting building recently purchased by Beverly Hills trial lawyer Gary Dordick for $7.35 million. Dordick told the Daily Journal in June he is in the process of buying the second building.

Rekte said it is possible the building will be sold, but it will take a while before it hits the market.