Followers of the legal drama know that Erika is a named defendant in a federal lawsuit that alleges that her soon-to-be ex-husband embezzled funds owed to family members of victims of a 2018 plane crash. Lawyer, Jay Edelson, is representing the survivors in a class-action lawsuit filed against the former couple.
Edelson recently revealed that financial records prove that “money that belonged to the surviving widows and orphans of the victims of that plane crash had, in fact, been used to make payments for Erika or her companies.”
Edelson recently called out the lawyer hired by the trustee overseeing Tom’s Chapter 7 bankruptcy case, which appeared to spark a decision by the trustee to drop an objection that was blocking Edelson from pursuing a case against Erika. The lawyer has since stepped down from the case. The trustee originally cited concern with the effort interfering with the ongoing bankruptcy case. An agreement was reached that requires Edelson to turn over any uncovered property belonging to Tom or his firm, Girardi Keese.
“Edelson agrees that it will alert the Trustee and the Girardi Keese Trustee of any property of either the TVG Estate or the GK Estate, found in the possession of Erika Girardi (or any party). Edelson will not collect such assets. Edelson reserves all other rights,” the agreement reads.
The judge presiding over the case has officially signed off on the agreement—which allows the surviving widows and orphans of the crash victims to personally sue the reality star. The suit had previously been put on hold due to the ongoing Chapter 7 case.
The Bravo star is facing a separate $25 million lawsuit as part of the bankruptcy proceedings. In July, documents were filed that claimed that Erika and two of her companies, EJ Global LLC and Pretty Mess Inc, raked in jewelry and other assets purchased by Girardi Keese funds. Erika flatly denied that the disgraced lawyer transferred “$20M and more” into her business account, during the recently aired RHOBH reunion series. The “XXPEN$IVE” singer was also accused of hiding bank statements to avoid accountability.
Erika insists that she had no clue about Tom’s shady business practices, and claims that all of her earnings went straight to him or his law firm, per an October report by TMZ. The “Pretty Mess” performer supposedly believed that Tom would manage her funds appropriately, and never checked the books. Sources told the outlet that while all of Erika’s income, including her Bravo paycheck, were deposited into EJ Global, Tom was the one who managed the finances.
Bravo recently decided to bump up the RHOBH production start date, so they can capture the constantly shifting legal drama as it unfolds.
The Real Housewives of Beverly Hills is currently filming Season 12.