Tom Girardi has been in a lot of hot water lately since being charged with stealing settlement funds from his clients. The famous lawyer’s shady practices were uncovered after he and Erika Jayne filed for divorce.
Gradually, more troubling information about the case is surfacing, but Tom and his lawyers seem to be doing all they can to protect him. He has filed for bankruptcy, and now Erika’s financial records are being examined to see what is there for his victims to collect.
Now, Tom has been formally placed under conservatorship after being diagnosed with dementia. Although this may not excuse his crimes, it could be enough to keep him out of jail.
As for Erika, she’s being sued for the money that Tom transferred her before the divorce.
Before Erika and Tom filed for divorce, Tom allegedly transferred approximately $20 million to Erika’s company. He supposedly knew he was headed for financial ruin, but it is unclear if Erika knew the same.
In documents obtained by Radar Online, the trustee that is in charge of Tom’s bankruptcy case filed a suit against Erika Jayne. According to the documents, Tom transferred money and assets to her in order to hide them from creditors.
The trustee claims he is informed that Erika has received jewelry and other items purchased with Tom’s funds. He allegedly also learned that she was paid $25,000,000 in receivables from her husband.
“Plaintiff is informed and believes and, on that basis alleges thereon, that defendant Erika has used her glamor and notoriety to continue to aid and abet in sham transactions that have occurred with respect to large transfers of assets from the Debtor to the Defendants,” the trustee wrote in the lawsuit.
The lawsuit demand that Erika returns the valuables and $25 million. This comes hours after Tom was placed under conservatorship.
Tom Girardi’s younger brother has officially filed to become Tom’s conservator this week. He has officially been diagnosed with dementia, which makes him unable to properly participate in his own hearings.
Dementia is classified as a “major neurocognitive disorder.”
Although Tom’s brother was previously set as his temporary conservator, he is now appointed as the permanent one. He is entrusted with decided what care is necessary for Tom and has control of his estate.
Their attorney said this is a “heartbreaking situation” for everyone.
Tom has previously disagreed with being placed under a conservatorship.
“Obviously, I disagree with the conservatorship altogether,” Tom testified in an earlier hearing. “I think that we should put together the reasons why the conservatorship should be dissolved, and then we’ll address it, address the court.”
Although Tom obviously was against it, this time around the judge concluded that Tom “consents and does not object” to the conservatorship.
It may be in Tom’s best interest to consent to the conservatorship, and perhaps it may protect Erika as well.
According to a report by People, new court documents are exposing the financial relationship. They found that Erika received $20 million in loans from Tom’s law firm, according to a motion by the bankruptcy trustee who is investigating Tom’s finances.
“The Trustee is six months into her administration of the estate and is beginning to unravel the numerous transactions which may be avoidable and recoverable for the benefit of creditors,” the legal document states. “Among the possible assets to be recovered are the millions of dollars of settlement proceeds which the Debtor may have transferred to Erika.”