For months, the Real Housewives of Beverly Hills star Erika Jayne has become increasingly entangled in her soon-to-be ex-husband Tom Girardi’s legal troubles. He and his law firm, Girardi Keese, are accused of embezzling millions of dollars from clients and business partners, and now face Chapter 7 bankruptcy. By proxy, Erika Jayne has been investigated as to her knowledge or potential participation in the alleged crimes. In the latest update, court documents claim that the reality star actually owes a substantial amount of money as a result of her supposed asset hiding.
People obtained new court documents that were filed on Wednesday by Ronald Richards, the lawyer representing the trustee in the Chapter 7 bankruptcy case. It claims that Erika Jayne and her two entertainment business companies (EJ Global, LLC and Pretty Mess, Inc) received jewelry, luxury items and lottery payments from Girardi Keese to the total of $25 million. As a result, they suggested Erika Jayne conspired with Tom Girardi and his law firm to hide assets meant for the supposed victims in the ongoing cases. It continued,
Erika has used her glamor and notoriety to continue to aid and abet in sham transactions that have occurred with respect to large transfers of assets from the Debtor.
The document also claims that the Real Housewives of Beverly Hills’ Erika Jayne “refused to return” the items and payments in question. Moreover, Ronald Richards requested that the judge in the case order Erika Jayne to pay the amount owed.
Erika Jayne was actually accused by the opposing counsel in the case of hiding assets prior to these new documents. The estimation was only at $20 million at that time. But the Real Housewives of Beverly Hills star, amidst trouble with her own lawyers, responded that she was not being uncooperative in the investigation.
Last week, however, Erika Jayne suffered a huge loss when the judge ruled that Tom Girardi’s former clients could sue her for what they are owed. This is on top of the court previously ordering Erika Jayne’s accountant, landlord, and divorce attorney to hand over key financial documents. It seems the new court filings are hoping to achieve another win for the entire estate in the Chapter 7 bankruptcy case.
In the latest episode of The Real Housewives of Beverly Hills, the timeline of the show finally caught up with the news of the lawsuit alleging Tom Girardi’s embezzlement schemes and that Erika Jayne’s divorce being a “sham” to hide assets. When talking with the other ladies, Erika Jayne said “nobody cares about the facts.” She also stated the federal investigation is “not cool” and that she has to wait to tell her side of the story. Though, Erika Jayne did allude to Girardi’s deteriorating mental state as having some part to play in the situation.
The legal battle is still ongoing. But it's looking like a Pretty Mess for Erika Jayne.