Erika Girardi is being accused of hiding asset transfers and owing to her estranged husband, Tom Girardi's firm a total of $25 million.
In a new document filed Wednesday and obtained by PEOPLE, the attorney for the bankruptcy trustee, Ronald Richards, claims that the Real Housewives of Beverly Hills star and two of her businesses, EJ Global, LLC and Pretty Mess, Inc., received jewelry and other luxury items purchased using funds belonging to Girardi Keese.
It also says Erika received lottery payments that belong to the Girardi Keese estate in addition to the “luxury items,” adding up to a total of $25 million.
The new document further claims that “the defendants” (Erika and her businesses) and “the debtor” (Girardi Keese) “conspired to conceal” the funds to keep the money away from the creditors in the bankruptcy case, which include Tom's former business partners as well as some of his former clients.
“Erika has used her glamor and notoriety to continue to aid and abet in sham transactions that have occurred with respect to large transfers of assets from the Debtor,” it says, adding that Erika has “refused to return” the lottery payments and luxury items, instead receiving or diverting them for her “own benefit.”
“As a result of the wrongful acts of the Defendants alleged herein, the Defendants have been unjustly enriched at the expense of the Estate and its creditors. The Defendants have derived and continue to derive benefit from their wrongful acts,” the document continues.
Richards also asks for a judgement ordering that Erika and her businesses pay the amount owed to Girardi Keese. “The Defendants are under an obligation to pay the Plaintiff and the Estate all amounts by which the Defendants have been unjustly enriched in an amount according to proof,” the document says.
In a statement to PEOPLE, Richards says there were “large jewelry purchases” made by the law firm and that Erika made “repeated appearances on network television displaying the bling with pride as to the cost and value.”
“We look forward to working cooperatively with the defendant's new counsel on finding the answers and searching for the truth,” he says, noting that Erika has recently changed her legal representation. “The complaint makes a prima facie case for its claims and we hope to come to a fair and just conclusion, based upon the facts that come and the evidence received from the defendant when she decided to provide it.”
In response to the lawsuit, a source close to Erika told PEOPLE: “No merit, no investigation, no proof, just more harassment.”
As previously reported, it was revealed this week that the Pretty Mess singer may have to repay settlement funds intended for her estranged husband’s former clients amid allegations that Tom’s firm gave Erika’s companies $20 million over the years. The Ruigomez family, who were featured in Hulu’s The Housewife and the Hustler, can pursue a collections lawsuit against Erika to obtain the $11 million they are owed from Tom.
“The Ruigomez Family, the Girardi Trustee, and the GK Trustee shall cooperate with each other with their collection efforts against Erika,” the court documents obtained by Us Weekly read.
Erika and Tom made headlines in November 2020 when the Bravo reality star filed for divorce after 20 years of marriage. The following month, the estranged couple was sued for fraud and embezzlement.
In addition to accusing them of swindling $2 million in settlement funds intended for families of victims of a 2018 plane crash, class action firm Edelson PC claimed in federal court documents that the divorce was “simply a sham attempt to fraudulently protect Tom’s and Erika’s money from those that seek to collect on debts owed by Tom and his law firm.”
Tom faced a second lawsuit later that month, alleging that his company breached a written agreement and conversation with Wells Fargo Vendor Financial Services. The bank sought immediate payment on the $882,715 outstanding bill.
In September 2020, Tom told the court that he lost millions of dollars and has “no money” left. The 82-yar-old was placed under a temporary conservatorship in February when his brother assumed control of his daily activities and personal care. One of Tom’s attorneys claimed in court in December 2020 that he was hospitalized for a “serious illness,” raising questions about his mental competency. Court documents revealed in March that Tom was diagnosed with late-onset Alzheimer’s and dementia.
However, in July 2021, a judge ruled that some former clients of Tom can pursue a collections lawsuit against Erika. According to court records obtained by PEOPLE, Tom's former clients, Joseph Ruigomez, Jaime Ruigomez, and Kathleen Ruigomez, will be able to collect the $11 million they are owed by him per a 2020 litigation.
According to court docs, Erika revealed that she “has nothing to hide” and has already expressed a “full willingness to cooperate and produce” documents to the court. In newly filed documents via Radar Online, the Bravo reality star said she will turn over all bank and financial records. However, she wants the lawyers to agree to not leak the documents.
Photo Credit: Bravo Media/NBCUniversal; Getty Images
