Lawyers found that The Real Housewives of Beverly Hills star Erika Jayne’s company spent over $25 million on luxurious expenses over the last decade. The spending allegations for Erika’s LLC coincide with her estranged husband Tom Girardi’s legal troubles. Erika filed for divorce from Tom in November 2020. Shortly after Erika filed for divorce, news broke that Tom’s legal firm, Girardi Keese, was forced into bankruptcy.
Tom is accused of misappropriating funds from his firm and is also the subject of a lawsuit that alleges the lawyer embezzled millions from his clients’ settlements. The drama of Erika’s divorce has played out in the current season of RHOBH, with chatter among the Beverly Hills ladies about the performer’s involvement in Tom’s alleged scams. Erika claimed in the latest episode that the victims of the embezzlement come first in the ongoing litigation. Though Erika denies having a hand in any mistreatment of funds, a recent letter from bankruptcy lawyers suggests the reality star’s company accepted and spent large sums of Girardi Keese’s money.
Bankruptcy lawyers claimed Erika’s company, EJ Global LLC, racked up a bill of $25 million in expenses, Page Six reports. According to a legal demand letter to the star’s lawyer, Erika’s company allegedly spent millions on her American Express bill, as well as for assistants and a glam squad. The legal letter claimed the funds were transferred from Girardi Keese to Erika’s company. The letter of demand breaks down 12 years’ worth of EJ Global’s expenditures. Over $14 million went to an American Express credit card, and over $1.5 million went to an NYC talent agency. Erika’s company is also alleged to have given over $100,000 to Kim Kardashian’s former assistant Stephanie Shepard and $1,000 to Kim’s longtime makeup artist Makeup By Mario. Over $17,000 went to an LA beauty agency. The Hollywood Reporter and Billboard publishing company E5 Global Media is said to have received over $8,000, and the Los Angeles Times Magazine received $10,400. Over $1.4 million of purchases on the tab are unknown. Though she is the sole owner of the LLC, Erika’s legal rep stated the housewife never managed her husband’s company and “no money whatsoever went to Erika.“
A bankruptcy lawyer said Erika owes Tom’s legal firm over $28 million for her purchases plus interest. “It is immaterial whether she knew her husband had improperly diverted funds from clients,” lawyer Ronald Richards said in a statement. “What is relevant is that she received complete and total value for the receivable and a formal demand for payment was sent. We are hopeful she backs up her on-air statement last night that the victims come first.“ Erika’s lawyer called the accusations malicious and denied the star has ever had any personal liability for debts or obligations of EJ Global LLC.
The “Pretty Mess” singer maintains her innocence through the accusations. Erika, who has been criticized for her cold demeanor in past RHOBH seasons, has made jokes on social media about her rocky airtime in the current season of The Real Housewives of Beverly Hills. Many fans believe Erika knows more than she is letting on and have criticized the reality star’s attitude about the very serious accusations. The latest development in Erika’s legal woes doesn’t help the singer’s case.
The Real Housewives of Beverly Hills airs Wednesdays at 8pm on Bravo.
Source: Page Six