Court documents reveal that the trustee overseeing Tom’s involuntary Chapter 7 bankruptcy case is demanding that the once famed lawyer’s life insurance policies be cashed out to help pay off his debts. The disbarred attorney has two life insurance policies, one valued at $36,848.41 and the other in the amount of $48,493.45. MassMutual has been ordered by the trustee to hand over the cash value of the policies. The insurance company agreed to cash out the policies after a judge signs off on the agreement. The $85,341.86 will be used to help pay back Tom’s numerous creditors.
Tom owes over $101 million between his personal bankruptcy case and the Chapter 7 bankruptcy of his defunct law firm, Girardi Keese. He is accused of withholding and misappropriating settlement funds for over ten years. Tom’s creditors believe that the cash was used to fund his opulent lifestyle and his wife’s pop star career.
Erika recently turned over a pair of $1.4 million diamond earrings after the trustee claimed that financial records proved that Tom purchased the jewelry with money owed to clients, in 2007. She initially balked at the idea of surrendering the diamonds but submitted after being hit by public backlash. She has not agreed to surrender the earrings permanently. Erika is also being sued for the return of the $25 million the trustee says was transferred from Girardi Keese into her company, EJ Global. Erika has refused to return any money and even tried to have the lawsuit dismissed.
The Bravo personality was recently hit with a brand new lawsuit that accused the reality star of being fully aware of her ex’s alleged shady business dealings. Erika was slapped with court documents that claim she had full knowledge of the lawyer’s scams against his clients, despite her insistent denials.
A recent Radar Online report stated that Erika and her company, EJ Global, had been hit by a lawsuit filed by Manuel H. Miller and Kathleen Bajgrowicz, a rep of Charles Osborne. Tom’s former law firm associate, David Lira, is also named as a defendant in the lawsuit. The suit accuses Lira of elder abuse and all defendants of aiding and abetting breach of fiduciary duty. Miller once teamed up with Tom to represent Bajgrowicz in a case against the NFL, with an agreement to split any attorney fees upon the settlement of the case. The current lawsuit alleges that Tom held back and misappropriated the settlement funds. The suit claims that Miller is owed $277k and Bajgrowicz is owed $1.1 million.
The case is unique because it does not seek to recover funds “fraudulently transferred to [Jayne and Lira]” but instead wants to hold both parties “liable for the damages caused by” their actions.
The suit claims that Lira chose not to shut down Tom’s Ponzi scheme-type activity and accuses the Bravo star of having knowledge “about the scheme and that victims like Plaintiffs were funding her notoriously lavish lifestyle.”
The Real Housewives of Beverly Hills is currently on hiatus.
Nancy Zhāng is an Entertainment Blogger for All About The Tea. Nancy covers hot topics, recaps and celeb news. She loves to multi-task as a writer and a private chef. She received a B.S. in Mass Communications from LSU. Nancy’s married and the proud mom of 2 German Shepherds.