The Real Housewives of Beverly Hills husband and his law firm have been hit with another federal lawsuit in Arizona — and AllAboutTheTEA.com can reveal exclusive details on their latest legal troubles.
In the complaint obtained by AllAboutTheTEA.com, Girardi and his law firm failed to keep up with payments on a loan of more than $5 million taken out to fund the firm’s caseload.
Girardi’s wife, Real Housewives of Beverley Hills star Erika Jayne is also named in the suit. According to Stillwell Madison, LLC, — the couple used funds designated for Girardi & Keese to “sustain their lavish lifestyle and maintain their glamorous public image.”
“the Firm and Mr. Girardi intended at the time the loan agreement was entered to use at least a portion of the loan funds to support Mr. Girardi and his wife’s high-end lifestyle, but concealed this fact from Stillwell.” the complaint reads.
According to the court documents, Girardi & Keese borrowed $5,110,440.38 in April 2016 from the plaintiff and Girardi is listed as the firm’s “100% owner” — still owe Stillwell at least $3,454,804.00.
As previously reported, Tom Girardi is also being sued in a separate dispute with Mill Valley-based funder Law Finance Group over the repayment of a loan of more than $15 million. In that suit, the plaintiff, Law Finance Group, also claims that Girardi and the firm refused to hand over recovered fees from cases the parties allegedly agreed would repay the loans.
The Los Angeles lawsuit also accuses Tom Girardi of funneling money from his law firm to fund his wife’s pop career instead of repaying the $15 million loan.
Read Court Documents Below
Additionally, Stillwell Madison is suing both Girardi and the firm for fraud — claiming they negotiated a forbearance agreement with the lender without informing them of the default on the loan from Law Finance Group. The Arizona lender claims that, had it known about the default, it never would have agreed to Girardi’s August 2018 proposal to allow him to make monthly $500,000 payments on the loan beginning in October 2018 to pay the loan off in full by September 2019.
According to Stillwell Madison, Girardi didn’t make the proposed October payment and brokered a new agreement on Dec. 2, 2018 to make three payments of $500,000.00 per month between December 2018 and February 2019 to pay off the full loan balance by March 17, 2019. Girardi made the full December payment but only paid $250,000 in January 2019 and has made no further payment since.