The trustee overseeing Tom Girardi‘s bankruptcy case is providing an update to the court this week—and it appears that the fallen attorney’s victims might receive some good news. The estranged ex of Real Housewives of Beverly Hills star, Erika Jayne, has been accused of embezzling millions owed to former clients and business partners and using the cash to live in luxury and fund his wife’s career.
The trustee, who has been working to sell off the ex-couple’s property to raise funds to pay the victims, stated in newly filed documents that he believes that there is significant cash to collect from some of Tom’s former clients. He also believes that there are still settlement funds linked to past cases to collect. The trustee cited one lawsuit connected to a lawsuit involving a Southern California gas leak. SoCalGas recently announced that they were prepared to pay out $1.8 billion. The trustee thinks that the settlement could rake in tens of millions to the estate. Tom represented 23% of the plaintiffs involved in the massive lawsuit.
The trustee has secured $4.2 million in cash thus far, amid the ongoing estate selloff.
The trustee is asking the court to approve expenditures that will pay for Tom’s “cloud” server, which will allow him to continue to pull records from an office that is “difficult to navigate, disorganized, and holds a large volume of documents.” Tom’s former employees will have to be compensated so the systems can be effectively navigated. The judge originally approved a budget for $166k-$276k, to fund the investigation. Tom reportedly owned two law firm office buildings, where the records are housed. One building has been sold, and the other is currently on the market.
“The trustee continues to diligently work to identify assets of the debtor and this process is ongoing. Without continuing access to funds, the Trustee is unable to fund a proper investigation of the Debtor’s affairs and to preserve and maximize the value of the Estate,” the docs state.
Financial records confirm that Tom’s firm, Girardi Keese, owes $101 million after the disbarred lawyer was accused of running his firm like a Ponzi scheme for over ten years. Erika is a named defendant in a federal lawsuit that alleges her involvement in an embezzlement scheme, which allowed Tom to allegedly pilfer millions owed to family members of plane crash victims. Erika filed for divorce in November, one month ahead of Tom being forced into a Chapter 7 bankruptcy, by multiple creditors. Tom and Erika have been accused of staging their split in order to hide assets. The reality star is being sued for the return of $25 million, the amount that was reportedly funneled into her entertainment company, EJ Global.
The lawsuit alleges that Tom’s firm covered all costs for Erika’s business for twelve years. The filings list several of Erika‘s alleged expenses during the marriage, including $14 million in American Express charges.
The Real Housewives of Beverly Hills airs on Wednesdays at 8 pm, ET, on Bravo.