According to court documents obtained by Radar, a woman named Christina Fulton is demanding the money the once-respected lawyer owes her.
In February, Girardi was forced into involuntary Chapter 7 bankruptcy. His creditors accuse him of owing them millions, but he refused to pay his debts. The judge signed off on the bankruptcy and appointed a trustee to take control of Girardi’s finances.
In court documents, it was revealed Girardi has $74 million in assets with $56 million in liabilities. At the moment, the trustee is in the process of determining which assets to sell-off. The money will be used to pay back Girardi’s debts.
Fulton, who is one of many creditors, wants to make sure the money Girardi owes her is not wiped clean in his bankruptcy
In the suit, Fulton says she hired Girardi to be her lawyer in 2016. He represented her in a lawsuit over a car accident in which she sustained serious physical injuries. In 2019, the case was settled for $924,300.
Despite the settlement, Fulton says she only received $195,000. Every time she demanded payment, Girardi allegedly told her he was keeping the rest in a “secret safe” and he was investing it on her behalf.
Fulton claims he never had answers when pressed for details about the location of the funds or the alleged investments.
The lawsuit accuses Girardi of fraud, embezzlement, and possible larceny. She claims, “Debtor has embezzled the unpaid balance of the settlement payment by converting it to his own use.”
She is demanding the $729,300 owed not be discharged in Chapter 7. A judge has yet to rule.
As Radar previously reported, Jayne is set to be hit with a lawsuit as part of the bankruptcy. The trustee is asking the court for permission to hire a lawyer to investigate transfers made to Jayne. They believe she received gifts that are property of the estate. In court docs, the trustee claims Jayne refuses to return assets.
Jayne filed for divorce from Girardi after 21 years of marriage and around the same time his financial trouble started to mount. The reality star has stayed mum about the situation despite being accused of helping embezzle the money.