Tom Girardi's Law Firm Allegedly Loaned Erika Jayne's Businesses Over $20 Million

·3 min read

New allegations are being raised in regards to the finances of Erika Jayne and Tom Girardi.

According to a motion filed by the bankruptcy trustee investigating Tom's assets, Erika's businesses allegedly received more than $20 million in loans from her estranged husband's law firm for several years.

"Erika has created a new company after the news broke of this scandal, which appears to simply be a successor company," the trustee alleged in court documents obtained by E! News. "Erika has multiple financial accounts and the Debtor's books show Erika owes large receivables to the Debtor."

According to the trustee, the motion's aim is to uncover potential recipients of fraudulently transferred monies.

As the court documents stated, "In order to uncover the whereabouts of potential assets of the estate, including the location of millions of dollars of litigation settlement proceeds or other firm assets, which may have been fraudulently transferred to Erika Girardi aka Erika Jayne…the Trustee must examine witnesses who may have first-hand knowledge of this widespread fraud."

Real Housewives Legal Scandals

E! News has reached out to Tom and Erika's attorneys for comment and has not heard back.

Erika Jayne, Tom Girardi
Erika Jayne, Tom Girardi

According to court documents, the trustee is six months into her administration of the estate and is "beginning to unravel the numerous transactions, which may be avoidable and recoverable for the benefit of the creditors. Among the possible assets to be recovered are the millions of dollars of settlement proceeds, which the Debtor may have transferred to Erika."

Due to the mounting legal matters, the trustee's special litigation counsel "is concerned that absent the investigation occurring rapidly, Erika may further dissipate the Debtor's assets. The necessity to trace her money and investigate the receipt of funds, her purchases including the bling and the glam, (diamonds and high expenditures of beauty maintenance, etc.) has become more heightened by these recent events."

Back in November 2020, Erika, 49, filed for divorce from Tom, 82, after 21 years of marriage. The breakup is currently being played out on the new season of Real Housewives of Beverly Hills.

Following the divorce filing, Tom has found himself involved in multiple lawsuits including a civil suit in which the attorney is accused of fraud and embezzling money from a Boeing 737 airplane crash settlement fund. Erika was named as a defendant in the complaint because the plaintiff firm Edelson PC alleges Tom was motivated to embezzle the money "in order to continue funding his and Erika's lavish Beverly Hills lifestyles."

Neither Tom nor Erika have publicly commenting on the ongoing legal proceedings. During a recent hearing, Tom's attorneys suggested that their client has issues regarding "his mental competence." As a result, they requested a mental health evaluation of the soon-to-be-divorcé. As for Erika, the best-selling author has denied any knowledge of Tom's alleged activities.

During a recent episode of Real Housewives of Beverly Hills, Erika briefly addressed her personal life saying, "There's so many layers to this divorce. It's so f--king complicated. It's very difficult to explain."

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