The trustee’s special litigation counsel, attorney Ronald Richards, previously reported that Girardi Keesetransferred $20 million to Erika’s various businesses, including one that theReal Housewives of Beverly Hillsstar created after the news of the embezzlement scandal broke.
On Monday, the court ruled in favor of the creditors, ordering that Erika’s accountant Michael Ullman, divorce lawyer Larry Ginsburg and landlord Benjamin Khakshour turn over various “key documents,” including her pay stubs, bank statements and any emails and text messages pertaining to her finances.
Erika Girardi.Amy Sussman/Getty
Lawyers for Erika did not immediately respond to PEOPLE’s request for comment.
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The original motion claimed that Erika “refused to provide access” to Ullman, her management company and the books and records of her various companies.
The motion went on to claim that Erika used her companies, including the newly created Pretty Mess Inc, to hide her assets, and has blocked access to Ullman while continuing to show off public displays of wealth.
“At every turn, Erika has used the glam to continue to aid and abet this sham transactions that have been occurring with respect to large transfers of assets from the [Girardi Keese] to Erika,” it said. “Moreover, the Trustee has received zero cooperation from Erika which is constant [sic] with someone hiding assets.”
Citing a worry that Erika will spend the funds transferred from “the Debtor” (Girardi Keese), the motion said various recent events — including Erika’s attorneysfiling to stop representing herand then later withdrawing that filing — have heightened “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.).”
Erika and Tom Girardi.Steve Eichner/AP
Two days later, Erika’s legal teamresponded to the motion in their own court filing, asserting that she “has been and remains willing to cooperate fully with the Trustee’s investigation in this bankruptcy of debtor Girardi & Keese.”
In addition to responding to the claims that she has not been cooperative, the reality star requested that the court reconsider its decision to appoint Richards as the special counsel to the trustee in the bankruptcy case, accusing him of making “false and inflammatory” statements about her on social media.
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“We are representing the Trustee on a limited basis relating to Erika Jayne,” Richards continued. “We only need to zealously pursue our client’s litigation objectives which is to find the money and recover it. Attacking the Trustee’s choice of counsel who is doing an effective job and working hard is a poorly designed strategy. The real issue is the large receivables to Erika Jayne and the money she is refusing to release or return, period.”
The bankruptcy case is just one of many legal woes facing Erika and Tom, 82, who has recently beendiagnosed with dementiaand late-onset Alzheimer’s disease. His younger brother, Robert, has been namedas a conservator over his person and estate.
Amid the bankruptcy and multiple lawsuits, the former couple has been accused ofusing their divorce to protect their money. Tom has not responded to any of the lawsuits in court.
source: people.com
