RHOBH star Erika Jayne’s ex Tom’s law firm does NOT have to pay back $1.5M PPP loan amid bankruptcy & fraud case
ERIKA Jayne’s ex Tom Girardi’s law firm does not have to pay back a $1.5 million Paycheck Protection Program loan, amid the ongoing bankruptcy and fraud case.
Tom’s firm, Girardi & Keese, secured the $1.5 million loan on April 15 of 2020, months before they were forced into Chapter 7 bankruptcy.
The loan, which was earmarked for the firm’s payroll, with 84 jobs reported, has been completely forgiven.
Paycheck Protection Program loans is a federally funded program meant for small businesses hit hardest by the pandemic to help pay wages and other business expenses during the coronavirus pandemic.
Once the loan is forgiven, the business owner does not have to pay it back.
Tom owes at least $56.8 million to law firms, litigation funders and other creditors, according to the bankruptcy filing in Los Angeles.
Meanwhile, Erika, 50, scored herself a major legal victory last week.
ERIKA SCORES A WIN
The Real Housewives of Beverly Hills star who recently refused to hand over a pair of $1.4million diamond earrings amid Tom’s bankruptcy case, has been dismissed from the $2million fraud lawsuit filed against him.
“Pursuant to stipulation, plaintiff’s claims against defendants EJ Global LLC and Erika Girardi are dismissed without prejudice and without costs,” the Saturday, January 29 court documents announced.
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The reality star was previously named beside her ex-husband for embezzling $2 million in settlement funds from the families of Lion Air Flight 610 crash victims, in December of 2020.
The Trustee on the case claimed that Erika had “prior knowledge” of the fraud as her ex-husband’s firm had been covering her expenses for 12 years.
However, the TV personality continually asserted that she had no insight regarding Tom’s wrongdoings.
SENTIMENTAL VALUE?
According to court documents obtained by RadarOnline, Erika denied requests to hand over the pair of diamond earrings Tom, 82, bought for her during their marriage.
The attorney investigating Tom’s ongoing bankruptcy case believes the disgraced lawyer purchased the earrings with money stolen from his clients.
The court has named a trustee to take control of Tom’s finances, while they must also find a way to pay back his alleged victims.
According to the outlet, the trustee has been looking over Tom’s bank statements and financial records.
It was recently revealed that Tom purchased the $750k diamond earrings for the RHOBH star with funds from his law firm’s client trust account.
The earrings, which were purchased from M&M jewelers, are now worth approximately $1.4 million.
TOM’S STRUGGLES
Meanwhile, Tom is unable to answer for himself as he is currently under conservatorship rules by his brother.
The former lawyer’s family has said he suffers from dementia, while he has moved into a senior living facility amid the legal scandal.
END OF AN ERA
The latest finding in the bankruptcy lawsuit comes after Erika claimed she’s “broke” following the legal issues and her split from Tom.
Erika confessed her financial struggles on an episode of RHOBH after she was sued for $25 million in Tom’s fraud case.
During the episode, Erika admitted that she currently has “zero dollars” to her name.
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