Tom Girardi’s Life Insurance Policies To Be Seized To Help Pay Off Massive Debt!

Tom Girardi’s life insurance policies are history. The ex of Real Housewives of Beverly Hills star, Erika Jayne, has been stripped of yet another asset amid his ongoing bankruptcy case. 

Radar has obtained court documents that reveal that the judge presiding over the disgraced lawyer’s bankruptcy case has signed off on the seizure of the life insurance policies. The trustee overseeing the case had requested that the MassMutual policies be cashed out to help pay off Tom’s victims. 

The insurance policies will bring in $85,341.85 and will be used to help pay off Tom’s massive debt. 

Former clients and business partners forced Tom into a Chapter 7 bankruptcy last year, accusing the disgraced lawyer of using settlement funds to support an opulent lifestyle and Erika’s pop star dream. Tom’s alleged victims have all made similar claims — that the attorney was awarded settlement funds after winning various lawsuits—but then made excuses to avoid turning over the payouts. Many of the alleged victims are now going after Erika because they believe that she raked in cash funneled from Tom’s law firm, Girardi Keese. 

In February, the Bravo star’s lawyer filed a proof of claim linked to the bankruptcy, in which Erika reiterated that she had nothing to do with the once famed attorney’s misdeeds.

“[Erika] should not be liable for and has complete defenses to such third party claims, as they are based on the actions of [Tom Girardi] and others, in which [Erika] had no part,” Erika’s lawyer stated, at the time. 

A recently filed lawsuit accuses Erika of aiding and abetting her ex’s alleged scams for her own personal gain. The “Pretty Mess” personality was slapped with court documents that claimed she had full knowledge of the lawyer’s actions against his clients, despite her insistent denials.  

Erika’s lawyer, Evan Borges, brushed off the allegations in comments to Radar Online, in late February.

“The bottom line is Erika believed, as did most of the legal community, that her husband was extremely wealthy. Erika has no law degree and never worked at the law firm. She was an entertainer,” he said.

The suit claims that Tom’s former law firm associate, David Lira, chose not to shut down Tom’s Ponzi scheme-type activity. It accuses the Bravo star of having knowledge “about the scheme and that victims like Plaintiffs were funding her notoriously lavish lifestyle.”

Erika, who announced her impending divorce from Tom in November 2020, continued to claim that she had no knowledge of the disbarred lawyer’s shady business practices in the February court documents. Erika noted in the filing that any money owed to her ex from past cases should be classified as community property.  

The trustee’s preliminary report, submitted in August 2021, stated that Tom’s firm owed $101 million in liabilities. The report was recently updated, after a months-long investigation. 

An updated filing listed a total of $517 million in claims filed against Girardi Keese. The shocking figure breaks down as $363 million in unsecured claims, $17 million in priority claims, $137 million in secured claims, and another $250k in administrative claims.

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