Share this @internewscast.com

Embattled reality star Erika Jayne is being sued for $25M by the trustee handling estranged husband Tom Girardi’s firm’s bankruptcy case. 

On Friday Page Six  reported that the trustee in charge of the Girardi Keese Chapter 7 bankruptcy case has accused the reality star of ‘knowingly allowing’ the firm to pay for her lavish lifestyle and frivolous expenses over the course of a decade. 

As the Real Housewife has continued to maintain that she was ‘kept away from the books,’ the trustee is mandating that even if that were to be the case ‘it would be a miscarriage of justice if [she] was allowed to simply walk completely free of owing over $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 has been accused of ‘knowingly allowing’ the firm to pay for her lavish lifestyle 

The lawsuit reads that ‘any payments made for her benefit are her responsibility,’ after it was alleged that she had spent $25 million of the firm’s money from 2008 to 2020 — funds that were allegedly transferred into her personal company EJ Global LLC.  

‘She attempts to create a distinction between handing her money directly versus paying all of her bills directly. The distinction, like her prior motion for reconsideration is meritless. Any payments made for her benefit are her responsibility’ the documents alleged. 

The trustee wants the court to rule that Jayne must cough up the $25 million she was said to have spent plus interest. 

And the scathing suit continued to say that she ‘feigned willful blindness’ as she had signed off on numerous tax returns, credit card slips and knew what she had spent on her now bankrupt estranged husband’s cards.  

Accountable: The trustee wants the court to rule that the reality star should pay back the $25 Million she spent plus interest and the suit alleges that she 'feigned willful blindness' to the financial wrongdoing the whole time

Accountable: The trustee wants the court to rule that the reality star should pay back the $25 Million she spent plus interest and the suit alleges that she 'feigned willful blindness' to the financial wrongdoing the whole time

Accountable: The trustee wants the court to rule that the reality star should pay back the $25 Million she spent plus interest and the suit alleges that she ‘feigned willful blindness’ to the financial wrongdoing the whole time 

‘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,’ the trustee continued to allege. 

‘Her feigned willful blindness and ostrich approach to these expenditures will do absolutely nothing to limit her liability.’

It was added: ‘The glam cannot be supported by a sham.’     

Ronald Richards, the trustee’s attorney, told the publication on Friday that there is ‘undeniable’ evidence that she knew about the expenses.  

‘The evidence is undeniable. The law firm paid out over $25,000,000 in expenses which were approved and generated by one person, Erika Girardi.’ 

The news comes just days after it was revealed that her ex Girardi’s firm owes more than $100 million to creditors. 

In legal documents obtained by PEOPLE, the total liabilities sit at $97 million more than the total assets of all property — which is roughly $4.1 million. 

The trustee handling the Chapter 7 bankruptcy case noted upon reviewing the firm’s records that ‘the debtor’s accounting offices were not well maintained’ and that the records were ‘very 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 that their whole life existed on credit cards

Claiming innocence: Erika has repeatedly claimed on this season of the hit Bravo show that she was 'kept away from the books' and said that their whole life existed on credit cards

Claiming innocence: Erika has repeatedly claimed on this season of the hit Bravo show that she was ‘kept away from the books’ and said that their whole life existed on credit cards

It was added that the trustee’s findings might ‘not have listed all of the debtor’s causes of action or potential causes of action against third-parties as assets,’ according to court docs, as the ‘actual total may be different than the listed total.’ 

His firm Girardi Keese has now begun to auction off a handful of Jayne’s personal memorabilia and collectibles including art and furniture to pay creditors amid the bankruptcy case.  

In June, Erika was ‘ordered’ to turn over financial records from her accountant, lawyer and landlord as part of the embezzlement investigation and a bankruptcy trustee is documenting the couple’s assets. 

Among many findings it was revealed that she had spent $25 million of the firm’s money from 2008 to 2020 — funds that were transferred into her personal company EJ Global LLC. 

Per Page Six, Jayne allegedly 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 an agency for dancers and choreographers, the McDonald Selznick Associates Agency.

Better times: Erika filed to divorce Girardi in November 2020 which was later

Better times: Erika filed to divorce Girardi in November 2020 which was later

 Better times: Erika filed to divorce Girardi in November 2020 which was later 

Among the unknown purchases, her company reportedly paid $102,596.77 to Kim Kardashian’s former executive assistant Stephanie Shepherd. 

Other bank statements show that  $17,415 was paid to Opus Beauty – a management agency that represents make-up artists, stylists and costume designers – and $1,000 to influential makeup artist Mario Dedivanoic.

At this time nearly $1.3 million is still unaccounted for with regards to personal spending. 

And despite claiming on the current season of the Real Housewives of Beverly Hills that she was ‘kept away from the books’ — even with regards to financial dealings of her own LLC — the letter read that she ‘approved the charges.’ 

‘Mrs. Girardi signed under penalty of perjury the return and personally approved the charges allocated to the breakdown,’ the letter read in excerpt.

Her attorney fired back: ‘No money whatsoever went to Erika’ and maintained that she never had a role in managing her now bankrupt husband’s company.  

Girardi was placed under the conservatorship of his brother Robert after he was diagnosed with dementia and late-onset Alzheimer’s.

On August 23 the embattled former attorney was seen checking out an assisted living facility called Belmont Village Senior Living in Burbank, California. 

The cost of admission is said to be between $4,545 – $4,750 a month for a private suite and the facility features round the clock care.   

On August 19 Tom was federally disbarred according to documents filed under the Central District of California.  

Assisted living: On August 23 Tom was pictured touring Belmont Village, an assisted living facility in Burbank, California

Assisted living: On August 23 Tom was pictured touring Belmont Village, an assisted living facility in Burbank, California

Assisted living: On August 23 Tom was pictured touring Belmont Village, an assisted living facility in Burbank, California 

Downsizing: The cost of admission is said to be between $4,545 - $4,750 a month for a private suite and the facility features round the clock care

Downsizing: The cost of admission is said to be between $4,545 - $4,750 a month for a private suite and the facility features round the clock care

Downsizing: The cost of admission is said to be between $4,545 – $4,750 a month for a private suite and the facility features round the clock care 

In March the State Bar of California filed discipline charges against him as they accused him of misappropriating millions in client funds and cited more than 100 lawsuits filed, alleging ‘financial wrongdoing and theft,’ according to the LA Times.

On May 27 legal documents showed that the Central District of California issued an order ‘to show cause’ why he ‘should not be disbarred’ which was due 30 days from the date of issue.

After failing to receive any response, Girardi was deemed ‘not eligible to practice law’ in a federal court but the state bar disbarment is still pending

Girardi’s legal troubles first started in December 2020, when a federal judge in Chicago froze his assets, and said the famed LA based lawyer had ‘misappropriated at least $2 million’ meant for the families of those killed in the Lion Air Flight 610 crash in Indonesia.

One month prior Jayne, had filed to divorce him — which many took as a ploy to preserve whatever remaining assets the former multi-millionaires had. 

Disbarred: On August 19 Tom was federally disbarred according to documents filed under the Central District of California but a state disbarment is still pending; pictured June 2019

Disbarred: On August 19 Tom was federally disbarred according to documents filed under the Central District of California but a state disbarment is still pending; pictured June 2019

Disbarred: On August 19 Tom was federally disbarred according to documents filed under the Central District of California but a state disbarment is still pending; pictured June 2019

Source: DUK News

Share this @internewscast.com
You May Also Like

More than $2.7 billion ‘stolen in crypto hacks’ so far this year

A staggering $2.7 billion worth of cryptocurrency was stolen in hacks of…

Judge Rejects Jonathan and Diana Toebbe Plea Deals

Jonathan Toebbe and Diana Toebbe. It is back to square one for…

Piers Morgan urges Elon Musk not to buy Manchester United, but to get his beloved Arsenal instead!

Piers Morgan begs Elon Musk to buy his beloved Arsenal and go…

Man charged with felony in Tazewell County dog’s death | WJHL

TAZEWELL, Va. (WJHL) — A Southwest Virginia man is facing a felony…

Border officials encountering large amounts of fentanyl

() — More than 550,000 pounds of illegal drugs have been seized…

MARTIN SAMUEL: Why would Sir Jim Ratcliffe get involved in Manchester United?

Elon Musk’s takeover wasn’t even the biggest joke at Manchester United’s expense…

Former Washington-Wilkes athletic director found guilty of Sexual Assault

WILKES COUNTY, Ga. (WJBF) – A former Washington-Wilkes High School Athletic Director…

Beast Reviews Are In, See What Critics Have To Say About The Idris Elba Survival Thriller

Idris Elba’s chances of playing James Bond may not be looking so…