Thomas Girardi, the estranged husband of Real Housewives of Beverly Hills star Erika Girardi, is facing new allegations he embezzled his client’s money to fund his lavish lifestyle.
According to court documents obtained by Radar Online, a woman named Christina Fulton is demanding the money the once-respected lawyer owes her.
In February, Girardi was forced into involuntary Chapter 7 bankruptcy. His creditors accuse him of owing them millions, but he refused to pay his debts. The judge signed off on the bankruptcy and appointed a trustee to take control of Girardi’s finances.
In court documents, it was revealed Girardi has $74 million in assets with $56 million in liabilities. At the moment, the trustee is in the process of determining which assets to sell-off. The money will be used to pay back Girardi’s debts.
Fulton, who is one of many creditors, wants to make sure the money Girardi owes her is not wiped clean in his bankruptcy
In the lawsuit via Radar Online, Fulton says she hired Girardi to be her lawyer in 2016. He represented her in a lawsuit over a car accident in which she sustained serious physical injuries. In 2019, the case was settled for $924,300.
Despite the settlement, Fulton says she only received $195,000. Every time she demanded payment, Girardi allegedly told her he was keeping the rest in a “secret safe” and he was investing it on her behalf.
Fulton claims he never had answers when pressed for details about the location of the funds or the alleged investments.
The lawsuit accuses Girardi of fraud, embezzlement, and possible larceny. She claims, “Debtor has embezzled the unpaid balance of the settlement payment by converting it to his own use.”
She is demanding the $729,300 owed not be discharged in Chapter 7. A judge has yet to rule, according to Radar Online.
Earlier this month, the Bravo reality star demanded to get a cut from the sale of the $16-million mansion. According to court documents obtained by Radar Online, Erika’s lawyer asked the federal judge presiding over the involuntary bankruptcy filed against the 81-year-old lawyer. The Bravo reality star says the trustee in charge of her soon-to-be ex-husband’s bankruptcy is in the process of putting the Pasadena home she shared with Thomas up for sale.
The money from the sale will be used to pay off his many creditors. In newly filed court documents, Erika objects to the trustee’s sale because it doesn’t put any money aside for her.
Erika argued California law allows her to stake a claim in the real property because she’s still going through the divorce. She wants the bankruptcy court to only allow the sale if the deal “provides for the preservation of Erika’s rights and to exempt property and its proceeds.”
In court documents courtesy via Radar Online, Tom’s financial state was revealed when a summary of his assets and liabilities was filed in the bankruptcy. The filing states the once-respected lawyer has over $74 million in assets with $56 million in liabilities.
Tom’s current monthly income is only $2,958. His biggest assets include the $16.5 million Pasadena mansion, a $1.1 million property in La Quinta, California along with a 2020 Range Rover and 2019 Aston Martin. The value of the clothes in his closet and his jewelry collection has yet to be determined. Thomas has over $5 million sitting in a City National Bank account, reports the outlet.
The largest liability is listed as a $51 million loan owed to his law firm, Girardi Keese. Erika is listed as a co-debtor in the documents. She appears to have been listed on financial documents relating to bills for American Express, City National Bank, various law firms, and their Wilshire County Club membership, according to Radar Online.
Last month, The State Bar of California filed an objection requesting that an independent expert examines Tom Girardi‘s ongoing health issues amid his divorce from Erika and temporary conservatorship.
According to court documents obtained by Us Weekly on Monday, March 15, state that attorneys representing the Bar believe the 81-year-old Colorado native’s conservatorship petition was “filed under highly unusual circumstances.” In February, Tom’s brother Robert Girardi was named temporary conservator of Tom’s estate and personal matters following an undisclosed medical emergency.
“Although the Petition alleges that Girardi suffers from dementia and is unable to care for himself, as recently as November 2020 — two months before the Petition was filed — Girardi was holding himself out as a legal expert and moderated a legal education panel discussion with leading trial attorneys and presented on complex litigation strategy,” the objection claims, adding that the information provided to the courts about Tom’s mental state isn’t sufficient.
The lawyer and the Pretty Mess singer have been at the center of legal controversy since announcing in November that they were splitting after 20 years of marriage. Class action firm Edelson PC accused the pair of faking their divorce to “fraudulently protect” their money, claiming they were “on the verge of financial collapse.” They were also accused of embezzling $2 million in settlement funds intended to help victims of the crash of Lion Air Flight 610 in 2018.
In December 2020, Tom’s assets were frozen as concerns about his health began to emerge. At the time, attorney Evan Jenness questioned whether his client “understands either the nature or the gravity of the current situation,” suggesting that Tom undergo a medical examination.
Last month, the State Bar of California declared that Tom was “not eligible to practice law” and stripped him of his legal license, effective March 9. Court documents later revealed that the 81-year-old was diagnosed with late-onset Alzheimer’s and dementia.
Clinical psychiatrist Dr. Nathan Lavid wrote in an affidavit filed on March 10 that Tom suffers from “moderate” delusions and is unable to attend court hearings “for the foreseeable future” as his and Jayne’s legal troubles continue, reports Us Weekly.
Photo Credit: Bravo Media/NBCUniversal; Girardi Keese
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