The Girardi controversy continues… and the latest is a doozy!
Erika Jayne may have tried to skirt the legal drama by divorcing Tom Girardi, but they’re both totally tied up in the scandal surrounding his law firm, Girardi Keese. In the midst of the firm’s bankruptcy case, there have been allegations of embezzlement, fraud, and corruption, leading Tom (who was also recently diagnosed with Alzheimer’s and put under conservatorship) to be disbarred.
Related: Erika Begs RHOBH Fans To ‘Stop Threatening My Life’ Amid Legal Issues
On Tuesday, things got even more grim. In documents obtained by Us Weekly, the trustee handling the firm’s bankruptcy case determined that the firm owes a whopping $101,007,652.46 to creditors. Compare that to the firm’s assets, which apparently only total a measly (by comparison) $4,130,773.59.
The filing read:
“Suffice it to say that the [Girardi Keese’s] accounting offices were not well maintained. Financial records (bank statements, invoices, tax returns, and other financial records) and other mail and papers were piled high on each and every flat surface and in no discernable order. Much of what the Trustee found upon her appointment was very dated.”
Phew. With all the information coming out, we’re starting to wonder how this house of cards (or stack of poorly organized financial records) didn’t topple over sooner.
Per Us, earlier this month the firm attempted to pay back creditors with an auction of “Erika Jayne collectibles,” memorabilia that included signed magazine covers, framed photos and the Billboard plaque for her 2009 single Roller Coaster.
According to a source for the outlet, the reality star didn’t “have a say either way” about her things being auctioned. The insider explained:
“These are all seized items. She had no approval on what was going to be auctioned off and what’s not auctioned off. … She’s just letting the law firm do what it needs to do. She wants the payment to be settled so she can just move on in life.”
Not sure how far the “Erika Jayne collectibles” will go to paying off that $100 million debt, but desperate times do call for desperate measures!
Related: Why Erika Reportedly Started A ‘Screaming Fight’ With RHOBH Producers
The 50-year-old has continued to maintain her innocence in all of her husband’s alleged schemes. Whether or not that’s true remains to be seen, but she’s definitely going to be feeling the consequences — and we bet this auction is only the tip of the iceberg. After all, there’s the whole “spending $25 million of the firm’s money” issue in the mix as well.
We’ll continue to keep an eye on this situation as it plays out…
[Image via Apega/WENN & Bravo/YouTube]
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