In 2021, Tom Girardi’s creditors forced him into filing a Chapter 7 bankruptcy after discovering he allegedly ran his law firm as a Ponzi scheme. In essence, the creditors claimed he was robbing Peter to pay Paul. These creditors were former clients who hired Girardi to sue Boeing, but the lawyer didn’t pay their $2 million from his negotiated multi-million-dollar settlement.
Before the Bankruptcy case, Girardi had reportedly won an approved $1.5 million Paycheck Protection Program loan for his staff working during the Covid-19 pandemic.
According to court documents, the creditors claim he funded his family’s lavish lifestyle with the proceeds from that case. They’re now demanding $25 million in restitution from Jayne based on her business dealings with Girardi.
According to the suit, the trustees claim part of the money went into her entertainment company EJ Global making her jointly liable.
Jayne, however, insists she was unaware of her husband’s alleged fraudulent activities, so she’s refusing to pay. She filed a counter-motion to dismiss the charges, which the court denied, so she’s going to trial in 2023 with her estranged husband.
Before the trial begins, Jayne listed Girardi on her pre-trial discovery alongside former company accountants saying his testimony could save her.
We’re unsure how that’ll work because Girardi’s family moved him to an Assisted Living facility in Burbank and claim he’s suffering from memory loss ailments. If that’s proven true, his testimony may not help Jayne because it’ll be ruled unreliable.
All these are happening alongside the divorce, although it’s stalled until a resolution of the Bankruptcy song.
Fellow housewives are curious about what part of the scandal Jayne knew before it became a court case. Dorit Kemsley said, “There cannot be a blind support because I personally have known her for five years, and I’m telling you everything I believed about Erika’s life is actually the diametrical opposite. She didn’t portray that they had anything but the happy, loving marriage. When she talked about the man that was there for the little people.”
That statement, amongst others caused a fierce on-screen quarrel between the two former friends, even though Dorit voiced the thoughts of the other co-stars. Regardless, Jayne insists she was oblivious to the shady dealings and wants to be free of liability.