Thomas Girardi‘s fraud victims might be receiving payments sooner, rather than later.
Nearly one year after the former Real Housewives of Beverly Hills attorney was forced into an involuntary bankruptcy by his creditors, who he owed tens of millions, the trustee presiding over the case has collected over $4 million and reportedly has tens of millions more on the way as prepares to repay those owed.
According to court documents obtained by Radar Online on September 30, the business affairs of Thomas, the estranged husband of Erika Jayne, were in “dire straits” when the trustee took over the estate. But now, as the trustee explained in his update on the case, he’s reached deals with Girardi’s secured creditors and has gathered $4.2 million in cash.
While the trustee is certainly off to a good start, he has struggled at times to work through the system at Thomas’ defunct firm and has had to pay former employees to help him. Following a previous request of the court, the trustee was granted the ability to spend between $166,000 and $276,000. Months later, he needs more.
“The trustee continues to diligently work to identify assets of the debtor, and this process is ongoing. Without continuing access to funds, the Trustee is unable to fund a proper investigation of the Debtor’s affairs and to preserve and maximize the value of the Estate,” the trustee’s court documents explained.
In the months since Thomas was forced into bankruptcy, most cases he was handling were either dropped by the client or transferred to another firm. And, when it comes to the cases transferred, a number are still pending and expected to bring the estate more cash in the near future.
One particular lawsuit, filed against SoCalGas over a gal leak, recently reached a $1.8 billion settlement, which is expected to bring in tens of millions as Thomas represented 23% of the plaintiffs.
The settlement will “eventually result in a significant recovery for the Estate,” the trustee shared.
Attorney Ronald Richards also shared this positive update on the case, confirming that the trustee has secured over $40 million for Tom’s victims and creditors, outside of the $25 million they are currently trying to recover from Erika Jayne.
The Trustee has been able to disburse funds to the Debtor's clients. As of April 2021, the Trustee had already disbursed or caused to be disbursed more than $26 million to clients. This means that clients (victims) got this $. This has nothing to do with the case against EG.???? https://t.co/s3qDK1zmSo
— Ronald Richards (@RonaldRichards) October 1, 2021
In other Thomas Girardi news, the former attorney‘s brother, Robert Girardi, who is acting as his permanent conservator, recently filed documents with the court in which he confirmed Thomas has been living in a “skilled nursing facility” for two months and receiving 24-hour care.
“[Thomas] cannot stay in his home due to his finances, and care needs,” the documents explained, via PEOPLE. “Tom is the subject of an involuntary bankruptcy proceeding and a marriage dissolution proceeding. As a result, his home was put up for sale. Furthermore, Tom’s care needs are such that he needs to be at a skilled nursing facility.”
The Real Housewives of Beverly Hills season 11 airs Wednesdays at 8/7c on Bravo.
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