Wife owes millions to Girardi firm, lawyer says

Thomas V. Girardi's wife received millions of dollars in loans from the disgraced plaintiffs' attorney and his law firm, Girardi Keese, according to new documents filed in U.S. Bankruptcy Court.

The special litigation counsel for the trustee "has already confirmed that the debtor has admitted in numerous filed tax documents that Erika's related companies have received over $20,000,000 according to the tax documents spanning multiple years," Ronald N. Richards, special counsel in the bankruptcy proceedings, wrote in the motion filed on Friday.

Tom Girardi is accused of stealing millions of dollars from client settlement money, and creditors have forced him and the law firm into bankruptcy. Speculation has centered on the idea that the once highflying attorney was brought low by the financial demands of Erika Girardi's entertainment career as a member of the cast of "The Real Housewives of Beverly Hills."

Erika Girardi's lawyer, Peter J. Mastan of Dinsmore & Shohl LLP, did not respond to a request for comment.

According to Richards' motion, Erika Girardi, known professionally as Erika Jayne, created what appears to be a successor company shortly after the news of her husband's alleged financial impropriety became public late last year. According to the California Secretary of State's website, Erika Girardi registered a company called Pretty Mess Inc., on Jan. 25. Richards said Friday that the company may have been created to hide money.

Erika Girardi has multiple financial accounts and Girardi Keese's books show she owes large receivables to the firm, the motion states. Erika Girardi also received improperly assigned attorney fees from client settlements that should have gone to the firm, according to the motion.

With the allegations against Tom Girardi coming to light, the couple's mansion in Pasadena, which was frequently featured on the TV show, has been listed for sale at $13 million. Erika Girardi now appears to rent a house in Los Angeles. To track the money, Richards said he wants to investigate whether Erika Girardi used funds from Girardi Keese to pay her new landlord.

"We want the stuff she gave the landlord and we want to show a payment stream and then go backward on how she's capitalizing her accounts," Richards said on Friday. "She has multiple bank accounts."

A bankruptcy trustee appointed Richards special counsel to find assets transferred from Girardi Keese to Erika Girardi. In re: Girardi Keese, 20-BK21022 (C.D. Cal. Bankruptcy Ct, filed Dec. 18, 2020).

Peter J. Mastan, Erika Girardi's lawyer, objected to Richards' appointment because of Richards' involvement in another similar case and because of his social media commentary about the Girardi case. U.S. Bankruptcy Judge Barry Russell denied that motion.

On Tuesday, Mastan told Russell that he wanted to withdraw from representing Erika Girardi because "the relationship of trust and confidence that is essential to a properly functioning attorney-client relationship has broken down." Two days later he withdrew the motion.

Meanwhile, Richards appears to be moving swiftly to understand what, if any, knowledge Erika Girardi had in the alleged theft of client money.

"Due to the mounting legal matters, the SLC is concerned that absent the investigation occurring rapidly, Erika may further dissipate the debtor's assets," Richards wrote in the motion. "The necessity to trace her money and investigate the receipt of funds, her purchases, including the bling and the glam, (diamonds and high expenditures of beauty maintenance, etc.) has become more heightened by these recent events."