As bankruptcy proceedings continue against both Thomas and his firm, the Real Housewives of Beverly Hills cast member is being accused of receiving “fraudulent” transfers, and of acting from a “place of privilege and obscene wealth,” as Thomas’s former clients cope with “horrific and unfair losses.”
In court documents obtained by PEOPLE, it was noted that “Erika has direct knowledge that for at least 12 years, all of her expenses were being paid by [Girardi’s firm] as she was generating them.”
“Moreover, Erika has repeatedly contended, ‘It is expensive to be me.’ The glam cannot be supported by a sham,” the document continued.
Erika is accused of spending $25 million in funds sent to her by Girardi Keese, including over $14,000,000 in American Express charges. She’s also accused of creating a shell company to hide assets, including jewelry and other items.
Although a source close to the RHOBH cast member recently told PEOPLE the case against her had “no merit,” the attorney for the bankruptcy trustee, Ronald Richards, said in the court documents that it “would be a miscarriage of justice if [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,” the documents explained. “Her feigned willful blindness and ostrich approach to these expenditures will do absolutely nothing to limit her liability.”
According to the documents, Erika “attempts to create a distinction between handing her money directly versus paying all of her bills directly.” But, “the distinction, like her prior motion for reconsideration is meritless.”
In a statement to PEOPLE on Friday, Ronald said his firm hoped their newest court filing would “provide a come to Jesus moment” for Erika.
“The evidence is undeniable,” he stated. “We are hopeful that Ms. Girardi comes down the mountain from a place of privilege and obscene wealth and returns some of these expenses so the former clients and creditors of this law firm can mitigate the horrific and unfair losses perpetrated by her husband and others…We are hopeful she finds it a better path to resolve this matter without any further avoidance of her obligations to this Estate instead of constantly draining Estate resources with meritless legal positions and threats. No more investigation is needed to prove the money traveled in one direction: To Erika Girardi.”
The Real Housewives of Beverly Hills season 11 airs Wednesdays at 8/7c on Bravo.
Top Stories This Week!