People has obtained documents that reveal that the liabilities carried by Girardi Keese come in at over $101 million. The staggering figure is about $97 million more than the firm’s total assets. The trustee overseeing the firm’s Chapter 7 bankruptcy case has filed to amend the assets/liabilities list, stating that “the debtor’s accounting offices were not well maintained” and that “much of what the trustee found upon her appointment was very dated.”
The trustee found that the assets in personal property total more than $4.1 million. The $25 million transferred to Erika’s entertainment company was included, along with several bank accounts. The law firm’s debts are also listed in the trustee’s findings.
The documents clarified that the trustee may “not have listed all of the debtor’s causes of action or potential causes of action against third parties as assets.” The documents state that the “actual total may be different than the listed total.”
Erika, 50, filed for divorce from the former powerhouse attorney in November, after a 21-year marriage. The duo made headlines after Erika dropped the divorce bomb, when Tom, 82, was accused of embezzling funds owed to family members of victims of a plane crash.
As reported earlier this month—Tom’s belongings have been auctioned off in recent weeks, in an effort to raise money to pay off his numerous creditors. The trustee overseeing the involuntary Chapter 7 bankruptcy case hired 360 Asset Advisors to help sell off prized memorabilia and other items owned by his former law firm, Girardi Keese.
The once-famed lawyer is accused of owing tens of millions to former clients and business partners, and creditors allege that Tom used the cash to support a luxury lifestyle. Many believe that Erika was involved in the alleged embezzlement, and have accused the ex-couple of filing for divorce in order to hide assets. The trustee is looking to recover $25 million from the reality star but Erika has refused, calling all of the items “gifts” from her soon-to-be ex.
“Known for its famous case against PG&E, as featured in the film Erin Brockovich, the high profile law firm of Girardi Keese filed for bankruptcy in December of 2020. The firm’s assets will be sold to help pay off creditors, including those who have filed claims of fraud against them. The auction will feature the firm’s office furniture, business machinery and equipment, as well as furnishings and decorations comprised of art, oriental rugs, sports memorabilia, wine, music memorabilia, statues, vintage law (and other) books, a vintage piano, a Cadillac DTS and much more,” the auction site’s listing read.
The catalog of items was posted on August 12 and the bidding kicked off on Friday, August 13. The bidding closed on August 25.
The Real Housewives of Beverly Hills airs on Wednesdays at 8 pm, ET, on Bravo.