Erika Jayne appears to be downsizing even more as the embezzlement scandal surrounding her continues to grow.
Paparazzi caught the 50-year-old wannabe pop star running around West Hollywood in an oversized gray sweatsuit.
In the photos, she is seen wearing her bleached blonde hair in a messy bun and finished off the look with a pair of expensive shades to cover her eyes.
The Bravo star was seen leaving an apartment building that had a vacant one-bedroom. At the moment, Jayne is living in a $1.5 million rental pad near Hancock Park.
The 3-bedroom, 2-bathroom, 2,015 sq. ft. pad is a far cry from the $10 million mansion she lived in with her husband Tom Girardi.
The reality star is accused of helping her husband embezzle money from his clients. In one federal lawsuit, a group of orphans and widows claim the once-respected lawyer represented them in a suit against an airline company over a plane crash.
Tom won a multi-million settlement for the families who lost their loved ones in the crash. However, they claim he failed to pay out $2 million owed on the deal. His former clients believe he diverted the money to help fund his lavish lifestyle with Jayne.
Jayne is a named defendant in the case. She is also dealing with a $25 million federal lawsuit filed against her by the trustee presiding over Girardi's involuntary Chapter 7 bankruptcy.
The trustee claims Girardi's law firm paid the bills for Jayne's company EJ Global for over a decade. Financial records show the firm paid $14 million for Jayne's American Express bill alone. As part of the Chapter 7 case, Jayne is being investigated for potentially fraudulent transfers made by Girardi for the benefit of his wife.
So far, Jayne has refused to return a dime of the money and claims everything in her possession was a "gift" from her estranged husband. She has less than 2 weeks to respond to the $25 million suit.