Jeweler Paid by Tom Girardi Settles Bankruptcy Lawsuit by Returning $100k

M.M. Jewelers, who received two payments totaling $209k from Tom Girardi, has agreed to pay back $100k as part of a settlement in a bankruptcy lawsuit. Girardi, who is accused of embezzling clients’ funds and running his law firm like a Ponzi scheme, was pushed into bankruptcy by creditors in 2020. The bankruptcy trustee has filed lawsuits against companies and individuals that Girardi paid in the years before the bankruptcy to recover funds to pay off his debts.

Jeweler M.M. Jewelers has agreed to pay back $100k it received from Tom Girardi, husband of Erika Jayne, to settle a bankruptcy lawsuit as Girardi is accused of running his law firm like a Ponzi scheme and using embezzled money to fund his lavish lifestyle with Jayne.

A California-based jeweler has agreed to pay back $100k to settle a bankruptcy lawsuit after being paid over six figures by Thomas Girardi, the husband of Real Housewives of Beverly Hills star Erika Jayne, according to exclusive court documents obtained by Bravo. The Girardi Keese law firm, once-respected and high-profile, was pushed into bankruptcy in 2020 by creditors. Girardi is accused of running his firm like a Ponzi scheme and embezzling clients’ funds to fund his lavish lifestyle with Jayne before she filed for divorce. In the bankruptcy, a trustee was put in charge to recover as much money as possible for Girardi’s creditors.

Several bombshell lawsuits were filed by the trustee against individuals and companies who were paid by Girardi before his bankruptcy, including one against Jayne herself for the return of $25m Girardi Keese spent on bills for her company, EJ Global. Another lawsuit was filed against M.M. Jewelers, which received $209k from Girardi on two occasions. The trustee claimed that when Girardi’s firm made the payments, it was in a “precarious financial state and was not paying creditors.” The transfers were deemed “fraudulent” and were made for the sole benefit of Girardi and Jayne.

The trustee is still investigating the magnitude of the fraud that spanned decades, and it is believed that millions of dollars of client funds were stolen and diverted to fund the lavish lifestyles of Thomas and other non-deserving parties. Girardi Keese’s systematic process of draining available cash, which often consisted of stolen client trust funds, involved making distributions to certain preferred creditors or third parties from Girardi Keese’s estate. It is said to have been carried out with the assistance of various partners, employees, and family members.

While the bankruptcy is yet to be fully resolved, this recent settlement is a positive development in the trustee’s efforts to recover funds for Girardi’s creditors. Girardi and his associates have been hit with criminal charges, and the former lawyer has been stripped of his license to practice law. Meanwhile, Jayne, who has not been criminally charged or accused of wrongdoing, is reportedly cooperating with the trustee’s investigation.

- Advertisement -

Related celebrities

- Advertisement -