Court Bombshell: Erika Jayne Reveals Alleged Fraud in Ex Tom Girardi’s Bankruptcy, Contacting Department of Justice
Aug. 2 2023, Published 11:30 a.m. ET
Real Housewives of Beverly Hills star Erika Jayne has presented shocking claims of fraud as part of her estranged husband Tom Girardi’s law firm’s bankruptcy, RadarOnline.com has learned.
Girardi was a top Los Angeles lawyer until his world crumbled in 2020. The now-disbarred attorney and his law firm Girardi Keese were pushed into Chapter 7 by creditors.
Jayne’s husband stands accused of running his firm like a Ponzi scheme. Earlier this year, prosecutors indicted Girardi on wire fraud charges.
In court, the government accused Girardi of embezzling $18 million from clients from 2010 to 2020. His alleged victims include orphans, widows, and one victim with severe burns. The ex-clients shared a similar story. They said Girardi secured a financial settlement in a legal dispute but had excused when it came time to pay out the money.
Jayne has been sued for $25 million by the trustee appointed to manage bankruptcy. The lawsuit demanded she return millions Girard’s firm spent on bills for Jayne’s company, EJ Global. The reality star has denied all allegations of wrongdoing. The case is ongoing.
Now, in a newly filed motion, Jayne asked that the bankruptcy judge not approve certain payments the trustee wants to make to creditors.
Her lawyer trashed the trustee. He wrote, “With minor exceptions, the only thing the Trustee has done quickly in this case is to give up on claims against and rush to make reckless agreements with, purported secured creditors. The result of the Trustee’s actions (and inaction), including the instant Motion, will be to give the lion’s share of assets of the [Girardi Keese] estate to either wrongdoers or parties that will receive a windfall – all to the detriment of unsecured creditors, which include victims of [Girardi Keese]. More than anyone, the victims of [Girardi Keese] will be hurt and prejudiced if the Motion is granted.”
Jayne said if the payments are approved it will “begin a process of giving away multiple millions of dollars from the GK estate to alleged secured creditors” — creditors who she believes do not have valid secured claims or “do have valid claims” but submitted inflated claims.
Further, she claimed that two of the alleged creditors are “in fact, wrongdoers not entitled to any payment.”
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Jayne said she recently found new evidence, through her attorneys. As a result, they have launched an investigation.
The motion added, “Disturbingly, this evidence is known or should be known by the Trustee.”
Jayne said frauds were committed in the court in connection with, and after, the filing of these bankruptcy cases.
“This evidence of fraud on the Court will be presented in upcoming filings, as soon as Ms. Girardi’s counsel have an opportunity to complete their investigation and discuss the evidence with the Department of Justice,” she said.
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The [Girardi Keese] case is of historic importance and goes to the core of the integrity of the legal profession. We request that the Court not approve or enable the Trustee’s rush to pay out the bulk of this estate to alleged secured creditors that, in whole or in part, when all the evidence is put forward, are not entitled to payment,” Jayne’s motion read.
One of the creditors that the trustee seeks to pay is the fire burn victim Joseph Ruigomez. Jayne said she has “great sympathy” for Ruigomez. However, she said he has been paid over $11 million from Girardi Keese.
Jayne said, “the Ruigomez creditors, while wholly deserving, already have received tens of millions of dollars in cash and other value from GK. The Trustee should not be intimidated by threats of continuing interest on the claims of the Ruigomez creditors, if further investigation would show that additional payments to them would amount to a windfall exceeding their actual loss. Many other legitimate creditor victims have not received a penny.”
A judge has yet to rule.
As we previously reported, Jayne left Girardi in 2020 as his legal problems mounted. She filed for divorce but the case has been put on pause until the bankruptcy cases are resolved.