Real Housewives of Beverly Hills star Erika Jayne’s fight to get back a pair of $1 million diamond earrings — that were ordered to be sold off as part of her husband’s bankruptcy — has started to hear up, RadarOnline.com has learned.
According to court documents obtained by RadarOnline.com, lawyers have shown up to the court to oppose Jayne’s appeal of the decision that required her to turn over the pricey set of jewelry.
As RadarOnline.com previously reported, back in 2020, Jayne’s husband Tom Girardi and his law firm Girardi Keese were pushed into Chapter 7 bankruptcy by creditors.
In court, the once-respected lawyer was accused of running his law firm like a Ponzi scheme. Many former clients said they were stiffed on money owed to them from legal settlements.
As part of the case, ex-clients have claimed Girardi secured them a lucrative settlement but had excuses when it came time to pay out.
For the past couple of years, the victims have dragged Jayne into various legal disputes. They have accused her of benefitting from the alleged embezzlement. The Bravo star has denied having any knowledge of her husband’s alleged misdeeds.
Jayne argued she was an innocent wife that had no role in Girardi’s law firm.
Recently, it was alleged that Girardi used $750k of his client’s money to buy Jayne a pair of diamond earrings in 2007. The trustee presiding over the law firm’s bankruptcy demanded the reality star return the jewelry after making the discovery.
Jayne refused to turn over the earrings. The judge ended up ordering the jewelry to be handed over and an auction is set to take place in the next couple of weeks. However, the reality star appealed the decision ordering her to turn over the items — in the hopes of convincing the higher court that the lower court ruled in error.
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- Erika Jayne To Bankruptcy Judge: Give Me Back My $1.4 Million Diamond Earrings
In her appeal, Jayne made several arguments as to why she believed the order was problematic. Now, the trustee has fired back in response.
“Thomas V. Girardi (“Girardi”) is a disgraced and disbarred attorney who embezzled millions of dollars from settlement funds deposited in his law firm’s client trust accounts, over a span of years,” the filing starts off. The trustee said the case is very simple.
He said Girardi took $750k from an account holding his client’s funds and used it to buy the earrings for Jayne. In court documents, the trustee said, “Mrs. Girardi has neither a legal nor equitable claim to the Earrings and, therefore, lacks standing to assert her claim. Her refusal to turn over the stolen property upon demand when told of its status is a crime, freshly committed, under California’s Penal Code § 496 (a); and, under § 496 (c) subjects her to treble damage civil liability.”
They added, “The Trustee’s rights to possession of the Earrings are superior in law and equity to Mrs. Girardi’s desire to maintain her “rich & famous” lifestyle. The trustee demanded the earrings be sold off at the upcoming auction and Jayne be shut down once and for all. The higher court has yet to rule.
As RadarOnline.com previously reported, Jayne is still facing a $25 million lawsuit brought by the trustee. The lawsuit demands she return the $25 million that Girardi’s law firm spent to pay the bills for her company, EJ Global.
Jayne has moved to dismiss the lawsuit. On top of all that, the RHOBH star recently learned about a massive $2.2 million tax bill she does “not have the ability to pay.” For his part, Girardi lives in a senior living home in Orange County, California. His family told the court the disgraced ex-lawyer has been diagnosed with dementia.