The trustee presiding over the bankruptcy case of Thomas Girardi and his now-defunct law firm filed a couple of lawsuits last week against jewelry stores that received “fraudulent transfers” from Girardi Keese in the years before it was forced into bankruptcy.
After a reported $250,000 was spent by the firm on Thomas’ now-estranged wife, Real Housewives of Beverly Hills star Erika Jayne, the lawsuits are demanding the jewelers return the funds as the trustee attempts to pay back victims and other creditors.
According to court documents obtained by Radar Online on December 27, the trustee filed a lawsuit against M.M. Jewelers (aka/dba MM Jewelers), claiming Thomas paid the company $209,000 in two separate payments — even though his firm was in a “precarious financial state and was not paying creditors” at the time — and another against Dan Levy Fine Gems for $40,000 worth of items for Erika.
“The world eventually learned that Girardi Keese was nothing more than an illicit and felonious business operated to line the rather large pockets of Thomas, his wife, and numerous cohorts. While the Trustee continues to investigate the magnitude of the fraud that spanned decades, it is obvious that millions of dollars of client funds were stolen and diverted to fund the lavish lifestyles of Thomas and other non-deserving parties,” the documents stated.
“Girardi Keese began a systematic process of draining the available cash, often times consisting of stolen client trust funds, by, among other things, making distributions to certain preferred creditors or third parties from funds of Girardi Keese’s estate,” the suit continued. “During the seven-year period prior to the Petition Date, with the assistance of various partners, employees, and family members, Thomas and Girardi Keese conspired by purpose and design to abscond and secrete the assets of Girardi Keese for the purpose of defrauding Girardi Keese’s creditors.”
Specifically in regard to M.M. Jewelers, the trustee wrote, “With respect to the Fraudulent Transfers, these were on account of luxury jewelry purchased for, or that solely benefitted, Thomas and Erika Girardi aka Erika Jayne, and had no relation to the operation of, and did not benefit, Girardi Keese.”
Ronald Richards reported the news this week just as he shared a document that detailed exactly how the $25 million transferred from Girardi Keese to Erika’s company, EJ Global, was spent.
As RHOBH fans may know, Erika is currently being sued for $25 million by the trustee, who hopes to recover the money to repay victims of Thomas’ fraud.
The Real Housewives of Beverly Hills season 13 will go into production sometime in early 2023.
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