The Real Housewives of Beverly Hills star Erika Jayne is being sued for $25 million by the lawyer handling the bankruptcy case of her ex-husband's law firm, Girardi Keese. Erika announced her divorce from husband Tom Girardi as news began to break of the powerful lawyer's legal scandals. Tom is accused of embezzling money from victims he represented in court. His firm was forced to enter bankruptcy, and Tom's misappropriation of the firm's funds over the last decade were investigated. It is alleged that Tom's firm is $101 million in debt.
The legal counsel looking into Girardi Keese's expenses found that Erika's company, EJ Global LLC, spent $25 million of the firm's funds. Court documents alleged that Erika spent millions from Girardi Keese on glam teams and a hefty American Express bill over the years. On RHOBH season 13, Erika claims she did not know that Tom mishandled his clients' money. Erika's lawyer also maintained her innocence and denied the spending accusations in a statement shortly after the court documents were released. Her representation claimed she is not responsible for the debts or obligations of her company.
The Girardi Keese bankruptcy case lawyers believe otherwise. The trustee of the case now wants Erika to pay back the $25 million in debt plus interest, according to Page Six. "Any payments made for her benefit are her responsibility,” the lawsuit claims. The trustee went on to suggest that claiming ignorance to Tom's financial woes won't let Erika off the hook. “[I]t would be a miscarriage of justice if [she] was allowed to simply walk completely free of owing over $25,000,000 to the Estate," the suit states. The case trustee went on to point to Erika's awareness about EJ Global's expenditures. “Erika signed all of her tax returns, numerous credit card slips and was well aware of the money she spent on the Debtor’s credit cards and the Debtor’s payment of her personal expenses,” said the suit. “Her feigned willful blindness and ostrich approach to these expenditures will do absolutely nothing to limit her liability.” Referencing Erika's outrageous makeup squad bills, the trustee said “The glam cannot be supported by a sham.”
The trustee's attorney, Ronald Richards, said the evidence against Erika is undeniable. “The law firm paid out over $25,000,000 in expenses which were approved and generated by one person, Erika Girardi.” Ronald went on to say the bankruptcy lawyers hope Erika "comes down the mountain from a place of privilege and obscene wealth" to return the expenses that should mitigate the unfair losses of the clients Tom ripped off. The attorney added that Erika paying back her alleged debts would “go a long way in backing up her public claim that the victims should come first,” referencing a bold claim the star made in a recent episode of RHOBH. In response to the lawsuit, Erika's lawyer said the bankruptcy trustee is “overreaching” and will “say and do anything to hurt Erika, despite the law.”
Many fans believe Erika's fraudulence is being exposed by Tom's ongoing legal turmoil. The singer claims Tom's financial missteps at the firm can be blamed by mental incapacity due to a previous injury and his advanced age of 82. The former lawyer was spotted touring an assisted living facility recently, though some think the sighting was staged. Now that lawyers are asking The Real Housewives of Beverly Hills star to pay back what she allegedly spent, Erika will have to come clean about the debts eventually.
The Real Housewives of Beverly Hills airs Wednesdays at 8pm on Bravo.
Source: Page Six