The trustee wants the court to rule that Jayne should pay back the $25 million she allegedly spent plus interest, arguing that “the glam cannot be supported by a sham.”
The Real Housewives of Beverly Hills star, 50, is being sued by the trustee handling the bankruptcy case of Girardi Keese for allegedly knowing that her ex’s firm had paid for her expenses over the course of 12 years, according to court documents obtained by Page Six.
“She attempts to create a distinction between handing her money directly versus paying all of her bills directly,” the lawsuit alleged. “The distinction, like her prior motion for reconsideration is meritless. Any payments made for her benefit are her responsibility.”
The trustee claimed that the singer used her company, EJ Global, to fund her lavish lifestyle and frivolous expenses. Jayne allegedly spent more than $25 million from the firm on an American Express bill and her glam squad, among others.
“The evidence is undeniable,” Ronald Richards, the trustee’s attorney, told Page Six in a statement Friday. “The law firm paid out over $25,000,000 in expenses which were approved and generated by one person, Erika Girardi.”
“We are hopeful that Ms. Girardi comes down the mountain from a place of privilege and obscene wealth and returns some of these expenses so the former clients and creditors of this law firm can mitigate the horrific and unfair losses perpetrated by her husband and others.”
The trustee said in the lawsuit that it would be a “miscarriage of justice if [she] was allowed to simply walk completely free of owing over $25,000,000 to the Estate” just because she claimed she wasn’t aware her husband had financial troubles at the time.
The lawsuit further alleged that the reality star “signed all of her tax returns, numerous credit card slips and was well aware of the money she spent on the Debtor’s credit cards and the Debtor’s payment of her personal expenses.”
“Her feigned willful blindness and ostrich approach to these expenditures will do absolutely nothing to limit her liability,” the trustee claimed.
Jayne’s lawyer responded to the lawsuit Friday (Aug. 27, 2021). “Unfortunately, the amended complaint is another example of the trustee and her counsel jumping to conclusions without a full investigation, and bullying and blaming Erika for actions taken by Girardi Keese for which Erika does not have legal liability,” her lawyer said in a statement to Page Six.
Her legal counsel added that the trustee is “overreaching” and will “say and do anything to hurt Erika, despite the law.” Her lawyer also said that she would defend the case and seek sanctions and appropriate remedies for the claims against her that were allegedly “brought in bad faith and without any legal merit.”
The news comes just days after it was revealed that her ex Girardi’s firm owes more than $100 million to creditors. It was mentioned in Friday’s suit that Jayne is not responsible for “the full amount” of debt Girardi Keese owes.