RHOBH’s Erika Jayne has been forced to hand over her $750K earrings from ex Tom Girardi following a judge’s order, The Sun can exclusively reveal.
The controversial reality star, whose jewels are now believed to be worth about $1.4million, lost her battle in a bankruptcy hearing for her ex and his law firm on Tuesday.
Erika’s ex, who has been accused of stealing clients’ money, was forced into bankruptcy along with his firm Girardi Keese in 2020, and there are more than $500million in claims from creditors.
The disgraced former lawyer, 83, gave his estranged wife the jewels in approximately 2004 or 2005 as a gift but they were stolen around a year later, according to court filings.
Erika alleges their family home was ransacked while they were out for dinner one evening, and she had left the earrings in a crystal container in her bathroom.
The Bravo star claimed in court papers they were not insured so her husband replaced them, insisting: “I had no reason to doubt or question the source of funds used to buy the earrings.”
According to court filings, the money used came from settlement cash supposedly for a group of people who “suffered serious health issues from their use of the drug Rezulin.”
A source told The Sun on Tuesday a judge agreed during a hearing the trustee in the Chapter 7 bankruptcy case can sell the earrings – purchased from M&M jewelers – in open court.
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They added the value of the jewelry will be determined by experts and the money will go the trustee for the Rezulin victims who are suing in a separate class action lawsuit.
Ronald Richards, who formerly represented Chapter 7 trustee Elissa Miller and is a creditor in the estate, also tweeted on Tuesday: “The Trustee already has @erikajayne’s former earrings, the judge is forfeiting all rights of Erika Girardi to the earrings!! What a hearing. The judge agrees with the Trustee. Motion is granted.”
The trustee previously claimed in court filings: “Mrs. Girardi in her declaration stated that she first learned of her husband’s embezzlement when the issue surfaced in this case – November 2021.
“At that time, Mrs. Girardi had an obligation to return the earrings to the Trustee. She did not, and the Trustee was compelled to file her Motion.
“Mrs. Girardi’s response, because of the passage of time, she gets to keep the fruit of the embezzlement. Not so.”
They went on to cite legal codes which provide that “every person who withholds any property from the owner . . . knowing the property to be stolen… shall be punished by imprisonment in a county jail for not more than one year, or imprisonment pursuant to subdivision (h) of Section 1170.”
The reality star is not being investigated criminally amid the embezzlement claims and denies knowing anything about Girardi’s finances, while her ex has not been charged with any crime to date.
TAX BILL SHOCK
Girardi, who has been disbarred, suffers from dementia and has moved into a senior living facility amid the legal scandal, his family claimed amid his conservatorship.
Erika, 50, previously alleged she was unable to hand over the earrings as she had been hit with yet another tax bill for $2.2million, according to court documents.
“I am in the midst of trying to figure out the basis of this tax bill with the assistance of my business manager, who is also an accountant,” she wrote. “I do not have the ability to pay the FTB tax bill.
“I also do not know if the FTB is claiming any sort of lien on my assets, which include the diamond earrings.”
According to a letter from the Franchise Tax Board and viewed by The Sun, she already owes more than $2.5million from 2011 to 2013 for her company EJ Global, which is currently suspended.
It is unclear if she owes tax for the years 2013 to 2019.
During an episode of Real Housewives of Beverly Hills, Erika claimed that she currently has “zero dollars” to her name – despite refusing to get rid of her $40,000-a-month glam squad.
While talking to co-star Kyle Richards, 53, she said: “I’m out here rebuilding my life, but girl, I have zero dollars.
“And by the time those trustees are done with him, there will be nothing. So I walk out of this with nothing.”
Erika, who has since downsized her home, continued: “And I said that to my lawyers the other day. I said, ‘I expect nothing.’
“And one of my lawyers looked at me and said, ‘That is the most courageous thing I’ve ever heard.’
“Every day brings a brand new disaster. It’s just full of f**king bulls**t.”