Erika Jayne and her husband Thomas Girardi are speaking out in regards to a $5 million lawsuit that accuses the reality couple of fraud.
As reported, The Real Housewives of Beverly Hills husband and his law firm was hit with a federal lawsuit back in June 2019. The suit accuses Thomas Girardi of defaulting on the $5 million loan and using the money to fund his Erika Jayne’s and lavish lifestyle.
“The current action was filed as a publicity stunt.” According to court documents obtained by The Blast, Erika and Thomas stated. “Plaintiff filed in federal court using such highly charged language as “lavish lifestyle” and “glamorous public image” with the goal to try to use the Court system as a publicity campaign.”
Erika Jayne is also named in the suit.
The reality star and her husband are demanding the lawsuit be moved out of the public eye to arbitration. They claim the contract with the lender states all disputes will be handled in arbitration, not federal court. A judge has yet to rule.
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.
The lender is suing seeking $3,454,804 owed plus punitive damages.
As previously reported, Tom Girardi was 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.