There must be something very special about these earrings. Erika Jayne continues to be defiant in the face of multiple lawsuits against her. And it might cost her. The Real Housewives of Beverly Hills star is trying to keep possession of a pricey set of earrings gifted to her by Tom Girardi. Since he was accused of embezzling settlement funds from his clients, collectors have come calling. It’s estimated that Tom and his firm owe approximately $500 million in claims. They were forced to file bankruptcy and in turn, the trustee wants assets.
That’s where Erika’s earrings come in. The pair gifted to her by Tom and are now worth an estimated $1.4 million. The court is demanding Erika give them back since they were allegedly bought with client funds. Erika has refused. But Radar Online is reporting that the trustee told the court that they could seek punitive damages. It would be in the amount of $5.4 million if she continues to refuse.
Erika has objected to the request from the beginning. She stated, “During our marriage, I believed [Tom] and [his firm] were financially successful, extremely wealthy, and made large amounts of money.” Her lawyer added that the statute of limitations has run out. In addition, Erika has revealed that she doesn’t have the money to pay a $2.2 million tax bill she owes on her business.
The earrings are currently in a safety deposit box where they will stay until the case is resolved. Erika’s lawyer has demanded that the jewelry be returned to Erika and not sold at auction. But the trustee argued that Erika should not be allowed to “keep the fruits of her husband’s poisonous tree because of the time that has passed since the crime occurred.”
Further, they noted that Erika admitted in her declaration that she learned of Tom’s embezzlement when the case surfaced. Which was in November of 2021, right after she filed for divorce. The trustee wrote, “At that time, [Erika] had an obligation to return the earrings to the Trustee. She did not, and the Trustee was compelled to file her Motion. [Erika’s] response, because of the passage of time, she gets to keep the fruit of the embezzlement. Not so.”
Documents by the trustee continue, “Her conduct appears to be a new crime. Her refusal to now turn over the Diamond Earrings is conversion, for which she can be held accountable in damages. She can also be civilly liable for the value of the Diamond Earrings, plus statutory interest and punitive damages, which with prejudgment interest could easily be $5.4 million.” They went on, “[Erika] makes much of the fifteen years that passed since Girardi helped himself to $750,000 from the Rezulin Client Trust Account so that she could have sparkling earlobes. But not once did she argue or present evidence that the beneficiaries of the Trust, the clients who were deprived of funds needed to pay for their special needs from the damages sustained from taking the drug, had any inkling of the embezzlement that took place.”
Erika’s lawyer has fired back, “The trustee for Girardi Keese (GK) stands in the shoes of the law firm, and inherits GK’s knowledge of the transaction in 2007, which involved a check written by two GK partners. The clock began to run in 2007 and all statutes of limitation have expired. The ‘new crime’ allegation is meritless.”
Her attorney went on to defend Erika’s role in the matter. He stated, “Once again, everyone piles on Erika, this time for actions of her ex-husband of 15 years ago about which she had no knowledge whatsoever. Putting the blame on Erika, an entertainer without a law degree who never worked at the law firm, is a diversion tactic.” He asked, “Why not focus on all the attorneys, accountants, and funders who were closer to TG and GK’s inside operations?”
TELL US – WHY WON’T ERIKA JUST TURN OVER THE EARRINGS? DO YOU THINK SHE SHOULD HAVE TO GIVE THEM UP? HOW MUCH DO YOU THINK HER LEGAL BILLS ARE?
[Photo Credit: Bravo]
