It’s been issue after issue, trial after trial for Erika Jayne for nearly two years now. While her husband, Tom Girardi, and his former law firm have been accused of embezzling nearly $500 million from clients and partners in the past, she in turn has been branded as the leader of the so-called “biggest racketeering business” ever seen by plaintiff’s law. Namely, prosecutors say the RHOBH The star was aware of the alleged schemes the entire time and even funneled the dodgy funds through his entertainment company, EJ Global LLC, and through his personal effects. And apparently there are even more legal issues on the horizon for her after she refuses to hand over a particular expensive gift that Girardi gave her.
Due to the various claims made against them, Tom Girardi and the law firm Girardi Keese had to file for Chapter 7 bankruptcy in 2020. A trustee was then appointed to deal with the complicated financial situation, including the sale to the auctions from the house of Girardi and countless priceless ones. items to repay creditors. The next item up for grabs was supposed to be a $750,000 pair of diamond earrings, which were now worth $1.4 million, but, according to Radar Online, the soon-to-be 50-year-old ex-wife refused to abandon them completely. The outlet has obtained new court documents filed by the trustee, and it appears they are setting legal precedent for Erika Jayne, stating:
His conduct appears to be a new crime. Her refusal to hand over the diamond earrings now is a conversion, for which she can be held liable in damages. She can also be civilly liable for the value of the diamond earrings, plus statutory interest and punitive damages, which, with prejudgment interest, could easily add up to $5.4 million.
The trustee also said the Bravo alum could also be “imprisoned in county jail for up to one year” for withholding apparently known stolen property, pursuant to Penal Code §496(a). (Tom Girardi reportedly took the money for the earrings from a settlement for Rezulin drug victims.) The reality TV star and her legal team are fighting accusations that she knew about the trail money in court, but the opposition isn’t leaving her alone just yet. They said in the filing:
[Jayne] makes much of the fifteen years that have passed since Girardi used $750,000 from client Rezulin’s trust account so she could have sparkling earlobes. But not once did she argue or present evidence that the beneficiaries of the Trust, the clients who were deprived of the funds necessary to meet their special needs because of the damages suffered as a result of drug use, had no idea of the embezzlement that had taken place.
In a statement to Radar Online, Erika Jayne’s attorney painted an entirely different picture of the earrings debacle. He clarified that the money withdrawn from the law firm for the earrings was taken by two associates of Girardi Keese, and not by his client. Also, since this would have been done in 2007, the “statutes of limitations have expired”. He continued:
Once again, everyone is going after Erika, this time for the actions of her ex-husband from 15 years ago that she had no knowledge of. Why aren’t the directors going after Tom Girardi or the estate of Mr. O’Callahan, the other GK partner who signed the check in 2007? Blaming it on Erika, an artist without a law degree who has never worked at the law firm, is a diversionary tactic. Why not focus on all the lawyers, accountants and funders who were closer to the internal operations of TG and GK?
The legal representative added that the trustee had already taken the beverly hills alum on an offer to “put the earrings in escrow pending final court resolution.” As they say, the trustee actually has the key to the safe where the earrings are right now.
One would assume that Erika Jayne fights so hard for the controversial Tom Girardi earrings because she herself might need them here soon. Amid one of many other ongoing legal battles she faces, a $5 million lawsuit, the plaintiffs involved allege she is seeking an “unfair advantage” by delaying the discovery process until the next hearing. They requested that EJ Global’s taxes be filed so they could proceed on that front, which a judge tentatively agreed to. As a result, however, the artist later filed in court that she was unable to pay the huge amount of unpaid taxes for the company that was holding things up.
She maintains that she has nothing to do with the financial aspect of her personal or professional life when she is married because Tom Girardi has managed everything. Moreover, she believes she is being extorted by the various interested parties.
We await further developments in this situation. However, in the meantime, fans can still find out what Erika Jayne keeps saying about her legal woes in the twelfth season of The The Real Housewives of Beverly Hills. New episodes premiere Wednesday and the following day for Peacock Premium subscribers.