Another day, another lawsuit for Erika Jayne. While her attorney works overtime, Erika is trying to do anything but talk about her legal issues. The Real Housewives of Beverly Hills star has recently tried to shift the conversation to her dating exploits in the press. But the lawsuits continue and the so does the negative press.
Erika has long maintained her innocence and distanced herself from her estranged husband Tom Girardi’s alleged misdeeds. But a new lawsuit is accusing her of knowing much more than she has let on. As reported by Reality Blurb, a new $55 million lawsuit was just filed against her by Edelson PC. The name might sound familiar. Edelson PC worked as co-counsel with Tom and his firm, Girardi Keese, to get settlements for family members of the victims of the 2018 Lion Air crash.
According to Bloomberg Law, the new suit was filed in the U.S. District Court for the Northern District of California. It accuses Tom’s now bankrupt law firm of stealing over $100 million. They allege that he stole from clients, co-counsel, vendors, “and many others unfortunate enough to do business with the firm.” Court documents claim, “When the curtain was finally pulled back, it became clear that Girardi Keese operated in a manner similar to a Ponzi scheme, but much worse.”
But Tom’s law firm wasn’t the only other defendant. So was Tom’s son-in-law (a former GK employee) and Erika’s company, EJ Global LLC. The suit stated, “EJ Global was created for the purpose of funneling money from Girardi Keese to benefit Erika.” Whoa. That’s quite the accusation against Erika and her company.
Erika’s attorney, Evan Borges, quickly issued a statement in her defense. He argued that the lawsuit is “another misguided attempt to blame Erika for actions of Tom Girardi and others of which she had no knowledge and in which she had no involvement.”
Court documents reveal that Edelson PC said that Tom’s firm didn’t just steal from clients. They accuse the firm of also falsifying their expenses and commingling stolen client funds. Additionally, they claim that the firm offered case runners cash for client referrals, bribed judges, and threatened clients to “prevent the scene from collapsing.” Yikes. California State Senator Tom Umberg noted, “They used to be a law firm but at some point, they turned into a criminal enterprise.”
Edelson PC’s Jay Edelson explained in an email that his firm’s case against Girardi Keese is “unique.” He continued, “We are unaware of any suit that alleges that the firm was essentially a criminal enterprise acting as a law firm. We are confident that Tom orchestrated the largest Ponzi-scheme in the history of the plaintiff’s bar, stretching back well over a decade (and likely much longer) and involving hundreds of millions of dollars.”
Edelson PC was also critical of the California State Bar. They allege that the bar failed to investigate the many complaints against Tom’s firm. The suit reads, “Tom maintained a spotless record before the State Bar. The fraud thus continued, with only the occasional glimpse of the rot inside the Girardi Keese firm. [He] cultivated the impression that not only was he a successful and powerful attorney, but he actually controlled the relevant authorities, including the agency charged with disciplining attorneys, the State Bar of California. And reportedly went so far as to bribe a longtime investigator at the State Bar.”
More details of the suit as it relates the Erika was shared by Us Weekly. Court documents allege, “Erika knew of the scheme, intended to participate in it and — critically — share in its profits, both directly and through her wholly-owned company, EJ Global.” The lawsuit then slams Erika by saying, “Despite her public claims that she and Tom were spending their own money, financial records show that more than $25 million of her own expenses were paid by Girardi Keese in furtherance of the Girardi Family Enterprise’s illegal scheme.”
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[Photo Credit: Bravo]
