Erika Jayne Trashed In Court After Demanding Damages For Her Diamond Earrings Being Sold Off In Husband's Bankruptcy
March 21 2023, Published 12:30 p.m. ET
Erika Jayne’s demand she be paid damages for her diamond earrings being sold off — as part of her husband’s bankruptcy — has been objected to, RadarOnline.com has learned.
According to court documents obtained by RadarOnline.com, the trustee presiding over Jayne’s husband Tom Girardi’s now-defunct law firm's Chapter 7 has scoffed at the RHOBH’s star’s request.
As RadarOnline.com previously reported, Tom, a one-time high-powered Los Angeles lawyer, was forced into bankruptcy in 2020 by creditors. Many of his former clients claim he secured them a financial settlement in a legal dispute but failed to pay them in full.
In court, Tom and his associates stand accused of running the firm Girardi Keese like a Ponzi scheme. Last month, Erika’s husband was hit with five counts of wire fraud. Prosecutors accuse him of embezzling $15 million from 2010 to 2020. He is facing 20 years in prison.
Tom’s alleged victims include orphans, widows and even a fire burn victim.
Jayne has been dragged into various legal battles involving her estranged husband. The RHOBH star has denied any knowledge of Tom’s alleged crimes.
Many creditors have gone after Jayne accusing her of living the high life off embezzled money. The trustee presiding over the bankruptcy for Girardi’s law firm sued Jayne for the return of $25 million.
In court documents, the trustee said the firm paid the bills for Jayne’s company EJ Global for years. Jayne asked the court to dismiss the lawsuit claiming she believed her husband had money at the time.
Later, the trustee demanded Jayne turn over a pair of diamond earrings Tom purchased for $750k. Jayne initially refused before agreeing to turn the set over.
The trustee said financial records showed the earrings were purchased with his client’s money.
The judge ordered the earrings to be turned over to the trustee. As RadarOnline.com first reported, Jayne filed an appeal of the decision but not before the set was sold off for $250k.
However, earlier this month, Jayne argued she should be awarded damages for the “legal error” that resulted in her jewelry being auctioned off.
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Her lawyer wrote, “Ms. Girardi has elected and is entitled to money damages based on the proceeds of the sale of a marital gift received by her in 2007 that was taken from her and sold by the Trustee based on the legally erroneous Turnover Order.”
Now, in newly filed documents, obtained by RadarOnline.com, the trustee asks that Jayne’s appeal be dismissed.
The trustee said Jayne had many opportunities to ask the court to stay the sale of her earrings but failed to do so.
As part of her argument, Jayne said the jewelry should not have been taken and pointed to the statute of limitations.
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Her lawyer argued, “the Bankruptcy Court erred as a matter of law when it determined that the Trustee's claims based on an alleged fraudulent transfer of property over 15 years ago were not barred by the applicable statutes of limitations.”
In response, the trustee said Jayne wants the court to rule on the issues of the “statute of limitations, not because the issue is relevant to this now moot appeal but because she would like to use a reversal of the Bankruptcy Court’s Turnover Order for social media reasons.”
The trustee trashed Jayne writing, “It is incredibly ironic that Mrs. Girardi, who since 2012 has exposed her and Thomas Girardi’s entire life to the world by starring on the reality show The Real Housewives of Beverly Hills would have this Court ignore the law pertaining to this appeal in hopes a decision on the issues of the statute of limitations would somehow vindicate her conduct, so she can then use the court’s decision to publicly counteract social media comments.”
The trustee said the higher court should deny Jayne’s plea to award her damages.
As RadarOnline.com previously reported, Jayne recently revealed in court she owes the California Franchise Tax Board a total of $2.2 million in back taxes. "I do not have the ability to pay," she wrote in a declaration.