On this week’s The Real Housewives of Beverly Hills, Erika Jayne broke down into tears.
She pointed out how she doesn’t know how to hide assets, which she was accused of doing by those suing her ex.
Tom Girardi allegedly fleeced millions in settlement money from his own clients.
But Erika is accused of using her public image to hide asset transfers and colossal debts.
Girardi Keese is Tom Girardi’s law firm.
Tom is no longer permitted to practice law and is also now Erika’s estranged ex.
However, the firm’s bankruptcy case remains very connected to Erika, according to those who say that she owes the firm $25 million.
Tom and the firm were accused of embezzling funds from multiple victims who had won courtroom settlements.
Specifically, these were the families who lost loved ones in a 2018 Boeing plane crash.
Tom has since been sued by his business partners and filed a chapter 7 bankruptcy petition late last year.
On Wednesday, July 14, court documents were filed by Ronald Richards, the attorney for the bankruptcy trustee.
In those papers, it was claimed that Erika and two of her businesses were used to sanitize funds from the firm.
The two businesses named are EJ Global, LLC and Pretty Mess, Inc.
Allegedly, Erika and these two businesses received jewelry and other luxury items.
That might sound normal, but per the accusation, these items were purchased using Girardi Keese assets.
The theory here is that these luxury items are allegedly being used to store wealth in a non-liquid form, to conceal the money from those who are owed.
According to the documents, Erika received lottery payments.
These belong to the Girardi Keese estate.
The total value of these financial transfers is claimed to total $25 million.
An inside source close to Erika tells People that this is at best, fishing, and at worst, cruelty.
“No merit, no investigation, no proof,” the insider alleged.
The source accused that these claims are “just more harassment.”
Within the filings, Erika and her businesses are “the defendants” while Girardi Keese is “the debtor.”
It is alleged that they “conspired to conceal” these funds in order to withhold monies from creditors in the bankruptcy case.
That includes some of Tom’s former clients and also his erstwhile business partners.
“Erika has used her glamor and notoriety to continue to aid and abet,” the documents allege.
This purportedly took place “in sham transactions that have occurred with respect to large transfers of assets from the Debtor.”
The filing complains that Erika has “refused to return” both lottery payments or luxury items, claiming that she has diverted them for her “own benefit.”
“As a result of the wrongful acts of the Defendants alleged herein,” the papers read.
The documents accuse that “the Defendants have been unjustly enriched at the expense of the Estate and its creditors.”
The filing continues: “The Defendants have derived and continue to derive benefit from their wrongful acts.”
The filing is asking the court for a judgment.
This would mean that Erika and her businesses are ordered to pay the amount that is allegedly owed.
The payment would be made to Girardi Keese, where creditors could then access it through another case.
