The Girardi controversy continues… the latest is a disaster!
Erika Jayne may have tried and evaded the legal drama by divorcing Tom Girardi but they are both tied up in the scandal surrounding Girardi Keese, his law firm. There have been accusations of fraud, embezzlement and corruption in the bankruptcy case of the firm, which led Tom (who was also recently diagnosed as having Alzheimer’s) to be removed from office.
Related: Erika Begs RHOBH Supporters to ‘Stop Threatening my Life’ amid Legal Issues
Things got worse on Tuesday. According to documents obtained by Us Weekly the trustee in charge of the bankruptcy case determined that the firm owes creditors a staggering $101,007.652.46. Compare that with the firm’s assets which appear to be only $4,130,773.59.
The filing stated:
“It suffices to say that the [Girardi-Keese] accounting offices weren’t well maintained. Financial records (bank statements and tax returns, as well as other documents and mail) were scattered on every surface, in no discernible order. Many of the documents that the Trustee discovered upon her appointment were very out of date.
Phew. We are starting to wonder why this house of cards, or stack of financial records that is poorly organized, didn’t collapse sooner.
Per Us, the firm tried to pay creditors earlier this month with an auction of “ErikaJayne collectibles,” memorabilia, which included signed magazine covers and framed photos, as well as the Billboard plaque for her 2009 single Roller Coaster.
According to an insider, the reality star did not “have a say in the matter” regarding her items being auctioned. An insider explained:
“These are all seized objects. She didn’t approve of what would be auctioned off or what wouldn’t. … She is letting the law office do what it needs. She wants the payment settled so that she can move on with her life.
It is not clear how far the “Erika Jayne Collectibles” will go in paying off that $100 Million debt, but desperate times call for desperate measures!
Related: Erika reportedly started a ‘Screaming Fight” with RHOBH Producers
The 50-year old has maintained her innocence in all of her husband’s alleged schemes. It remains to be confirmed if that is true, but it is certain she will feel the consequences. We bet this auction is just the tip of the iceberg. There’s also the “spending $25,000,000 of the firm’s money” issue.
We’ll continue to monitor this situation as it unfolds…
[Image via Apega/WENN/Bravo/YouTube]
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August 26, 2021, 16:00 PM PDT