Erika Jayne Sued For $25 Million And Accused Of ‘Allowing Conscious’ Girardi Keese To Pay Her Expenses
Controversial reality star Erika Jayne is being sued for $25 million by the trustee handling the bankruptcy case of estranged husband Tom Girardi.
On Friday Page six reported that the trustee in charge of the Girardi Keese Chapter 7 bankruptcy case has accused the reality star of having “knowingly” charged the company for her lavish lifestyle and frivolous spending over the course of a decade.
Since the real housewife has continued to insist that she was “kept off the books,” the trustee prescribes that even if that were the case, “it would be a miscarriage of justice if [she] was allowed to roam freely and owed more than $25,000,000 to the Estate.’
In deep! Erika Jayne is being sued for $25 million by the trustee handling the Girardi Keese Chapter 7 bankruptcy case and accused of ‘knowingly allowing’ the company to pay for her lavish lifestyle
The lawsuit states that “all payments made on her behalf are her responsibility,” after it was alleged that from 2008 to 2020 she spent $25 million of the company’s money — money allegedly transferred to her personal company. EJ Global LLC.
“She tries to distinguish between handing over her money right away and paying all her bills right away. The distinction, like her previous request for reconsideration, is undeserved. All payments made on her behalf are her responsibility,” the documents said.
The trustee wants the court to rule that Jayne must cough up the $25 million she allegedly spent plus interest.
And the scathing indictment continued to say she was “feigning willful blindness” because she had signed numerous tax returns and credit card receipts and knew what she’d spent on her now-bankrupt estranged husband’s cards.
Chargeable: The trustee wants the court to rule that the reality star must repay the $25 million she spent plus interest, and the lawsuit alleges that she “famed willful blindness” for the financial misconduct the entire time
“Erika signed all her tax returns, numerous credit card receipts, and was well aware of the money she had spent on the debtor’s credit cards and the debtor’s payment of her personal expenses,” the trustee continued to claim.
“Her feigned willful blindness and ostrich approach to these expenses will do absolutely nothing to limit her liability.”
It was added: ‘The glamor cannot be supported by a sham.’
Ronald Richards, the trustee’s attorney, told the publication on Friday that there is “undeniable” evidence that she was aware of the charges.
“The evidence is irrefutable. The law firm paid over $25,000,000 in expenses that were approved and generated by one person, Erika Girardi.”
The news comes just days after it became known that her ex Girardi’s company owes more than $100 million to creditors.
In legal documents obtained by: PEOPLE, total liabilities are $97 million more than total assets of all properties — that’s about $4.1 million.
The trustee handling the Chapter 7 bankruptcy case, when reviewing the company’s records, noted that “the debtor’s accounting offices were not well maintained” and that the records were “extremely dated.”
Claiming innocence: Erika has repeatedly claimed on this season of the hit Bravo show that she was “kept away from the books” and said their entire lives existed on credit cards
It added that the trustee’s findings may not have listed all causes of action by the debtor or potential causes of action against third parties as assets, according to court documents, as the “actual total may be different from the stated total.” ‘
His firm Girardi Keese has now begun auctioning off a handful of Jayne’s personal memorabilia and collectibles, including art and furniture, to pay creditors during the bankruptcy case.
In June, Erika was “ordered” to hand over her accountant, lawyer and landlord’s financial records as part of the embezzlement investigation and a trustee is documenting the couple’s assets.
Among the many findings, it was revealed that from 2008 to 2020 she spent $25 million of the company’s money – money transferred to her personal company EJ Global LLC.
Per Page six, Jayne is said to have spent $14,259,012.84 on her American Express card and $1,417,587.50 on unknown purchases — as well as $1,532,774.88 on a dancer and choreographer’s agency, the McDonald Selznick Associates Agency.
Better times: Erika filed for divorce from Girardi in November 2020, which was later
Among the unknown purchases, her company reportedly paid $102,596.77 to Stephanie Shepherd, Kim Kardashian’s former executive assistant.
Other bank statements show that: $17,415 was paid to Opus Beauty – a management agency representing makeup artists, stylists and costume designers – and $1,000 to influential makeup artist Mario Dedivanoic.
At this point, nearly $1.3 million is still missing regarding personal expenses.
And despite claiming on the current season of the Real Housewives of Beverly Hills that she was “kept off the books” — even in regards to her own LLC’s financial dealings — the letter said she “approved of the allegations.” .
‘Mrs. Girardi signed the declaration under penalty of perjury and personally approved the costs allocated to the outage,” the letter read in an excerpt.
Her lawyer fired back, saying “There was no money going to Erika at all,” claiming she had never played any part in managing her now-bankrupt husband’s business.
Girardi was placed under guardianship of his brother Robert after he was diagnosed with dementia and late Alzheimer’s.
On August 23, the controversial former attorney was seen at an assisted living facility called Belmont Village Senior Living in Burbank, California.
Admission fees would be between $4,545 and $4,750 per month for a private suite, and the facility offers 24-hour care.
On August 19, Tom was federally disbarred according to documents filed under California’s Central District.
Assisted Living: On August 23, Tom was photographed while touring Belmont Village, a residential care facility in Burbank, California
Downsizing: Admission costs would be between $4,545 and $4,750 per month for a private suite, and the facility offers 24-hour care
In March, the State Bar of California filed a disciplinary charge against him, accusing him of embezzling millions in customer funds and citing more than 100 lawsuits alleging “financial misconduct and theft,” according to the LA Times.
On May 27, legal documents showed that the Central District of California had issued an injunction “to show the reason” why he “should not be suspended,” which was to be suspended 30 days from the date of issue.
After receiving no response, Girardi was deemed “ineligible to work as a lawyer” in a federal court, but the state suspension is still pending
Girardi’s legal troubles first began in December 2020, when a Chicago federal judge froze his assets, saying the famed LA attorney had “embezzled at least $2 million” intended for the families of those killed in the Lion crash. Air Flight 610 in Indonesia.
A month earlier, Jayne had filed for divorce – what many saw as a ploy to preserve the former multimillionaires’ remaining assets.
Suspended: On August 19, Tom was federally disbarred according to documents filed under California’s Central District, but a state ban is pending; pictured June 2019