Erika Jayne Accused of Getting Over $20 Million in Business Loans From Husband Tom Girardi's Law Firm
By Zach Seemayer
Dimitrios Kambouris/Getty Images
Legal complications continue to mount for Erika Jayne and estranged husband Tom Girardi. The reality star's various businesses have allegedly received millions of dollars in loans from the 82-year-old attorney's law firm.
According to a motion filed by the bankruptcy trustee investigating Girardi's assets, which ET obtained on Tuesday, Jayne's businesses have been given over $20 million in loans over the span of multiple years, according to available tax documents.
"Erika has created a new company after the news broke of this scandal which appears to simply be a successor company," the trustee claims in the motion. "Erika has multiple financial accounts and the Debtor's [Girardi] books show Erika owes large receivables to the Debtor."
In the motion, it's explained that the trustee has been administering Girardi's estate for six months for the purpose of recovering assets "for the benefit of creditors." The trustee believes that "among the possible assets to be recovered are the millions of dollars of settlement proceeds which the Debtor may have transferred to Erika."
The documents go on to state that the "trustee's special litigation counsel has confirmed that 'settlement funds were diverted to Erika.'" Additionally, the document states that Jayne's legal representatives were provided with "irrefutable evidence" supporting the allegations leveled in the motion.
The trustee also argues that expediency is key in this case, with regard to the possible recovery of assets.
"Due to the mounting legal matters, the [special litigation counsel] is concerned that absent the investigation occurring rapidly, Erika may further dissipate the Debtor's assets," the motion states. "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."
The motion comes shortly after the premiere of the ABC News documentary The Housewife and the Hustler, which explored the allegations of embezzlement and the lawsuit filed against the pair in December on behalf of several families who lost loved ones in the Lion Air Flight 610 crash, which occurred in October 2018.
Girardi allegedly embezzled settlement money that was supposed to go to the family members of the victims. Girardi and Jayne are accused of using that money to fund their own lavish lifestyles and allegedly pay off loans to keep Girardi's law firm afloat.
The documentary also addressed one of the latest developments, which came in February, when Girardi was placed under a temporary conservatorship. In March, a psychiatrist told courts that Girardi suffers from Alzheimer's disease, and that he is unable to care for his own personal or financial matters.
According to docs obtained by ET, the attorneys state that "the relationship of trust and confidence that is essential to a properly functioning attorney-client relationship has broken down and, in good faith assessment of counsel, the relationship is irreparable. Withdrawal is appropriate under such circumstances."
Check out the video below for more on Jayne's ongoing marital issues and pending legal battles.