Credit: JENNIFER GRAYLOCK/INSTARimages
More legal woes for Erika Jayne as she’s now facing a $25 million federal lawsuit as she’s also being accused of launching a shell company in 2020 in an alleged effort to hide assets transferred to her by estranged husband Thomas Girardi.
As Thomas continues to be faced with bankruptcy proceedings, the trustee presiding over his case has filed an amended federal lawsuit against the Real Housewives of Beverly Hills star, who is accused of helping Thomas embezzle millions from former clients.
According to court documents obtained by Page Six on August 27, Erika, the lawsuit is demanding she turn over $25 million in money and other luxury items she reportedly received from Thomas after the once-famed attorney realized he was unable to pay off his debts.
While the RHOBH star previously refused to return the $25 million, claiming everything she received from Thomas was a “gift,” the amended lawsuit against her suggests she used her entertainment company, EJ Global, which was established in 2008 under only Erika’s name, to collect the funds and filed income from the company on her personal taxes.
It was also alleged that Erika launched a successor company called Pretty Mess, Inc in 2021 to reportedly help her hide her money from creditors.
“It was only after she left Thomas Girardi and the Debtor stopped paying for EJG and Erika’s debts, did Erika incorporate PMI which does nothing different than EJG. Both entities are tax pass-through to the same beneficial owner, Erika Girardi,” the document read according to Radar Online.
EJ Global is nothing but a “shell entity with no capital in it whatsoever. It has a single owner, with no separate books, current bank accounts, or other indicia of corporate formally. Clearly, if EJG was allowed to shield Erika Girardi from over $25,000,000 in expenses just spent on her, there would be an egregious inequitable result. The existence of EJG was merely an instrumentality to funnel a large-scale tax fraud from the Debtor to the benefit of Defendant Erika,” it continued.
According to the trustee, Erika claims she didn’t receive the money personally, stating that her company received funds. However, in his opinion, the suggestions are “ludicrous” because the RHOBH cast member is responsible for all the money received and spent by EJ Global.
The trustee went on to add, “It would be a miscarriage of justice if Defendant Erika was allowed to simply walk completely free of owing over $25,000,000 to the Estate. Erika signed all of her tax returns, numerous credit card slips and was well aware of the money she spent on the Debtor’s credit cards and the Debtor’s payment of her personal expenses.”
“Erika believes she is above the law,” he added.
The Real Housewives of Beverly Hills season 11 airs Wednesdays at 8/7c on Bravo.