Tom Girardi's Former Law Firm Reportedly Owes More Than $100 Million In Debt
Tom Girardi's former law firm is reportedly more than $100 million in owed debt.
According to documents obtained by PEOPLE, the total liabilities for Girardi Keese are more than $101 million. This is believed to be approximately $97 million more than all the assets of all listed property.
Erika Jayne filed for divorce in November and one month later, the 82-year-old was sued by his business partners, which resulted in a chapter 7 bankruptcy petition.
Robert Keese sued Girardi to dissolve their business venture, 1126 Wilshire Partnership. Keese along with Robert Finnerty and Jill O’Callahan alleged that the once-famed attorney did not pay them around $315,000 in owed income and allegedly took the money "for his own personal gain."
According to the new documents, the trustee in charge of handling the bankruptcy case filed to amend the schedule of Girardi's assets and liabilities. The trustee reviewed the firm's books and records, and noted that "the debtor's accounting offices were not well maintained" and that "much of what the trustee found upon her appointment was very dated."
- Tom Girardi's Law Firm Was Approved For $1.5 Million PPP Loan Months Before Chapter 7 Bankruptcy
- Erika Jayne 'Doesn't Have A Say' In Memorabilia Auction To Pay Back Creditors In Tom Girardi Bankruptcy Case, But Wants It Settled So 'She Can Just Move On,' Source Says
- Erika Jayne's Estranged Husband Tom Girardi Reportedly Moves Into Senior Living Home After Being Disbarred By California Federal Court
The total assets in personal property are listed at more than $4.1 million, the trustee noted. The law firm's debts, as well as several banking accounts and the $25 million loan allegedly given to Jayne's entertainment company, also reportedly appeared in the trustee's findings.
The documents noted that the trustee may "not have listed all of the debtor's causes of action or potential causes of action against third-parties as assets" and the "actual total may be different than the listed total."
As previously reported by OK!, Girardi Keese auctioned off items to pay off creditors which included "Erika Jayne collectibles." The collectibles included signed magazine covers, framed photos and the Billboard plaque for her single "Roller Coaster."
The firm listed "office furniture, business machinery and equipment, as well as furnishings and decorations comprised of art, oriental rugs, sports memorabilia, wine, music memorabilia, statues, vintage law (and other) books, a vintage piano, a Cadillac DTS and much more" for sale. An Erin Brockovich poster signed by Julia Roberts was also reportedly included.
Also in the auction were two pieces of lingerie that reportedly did not belong to the 50-year-old. An insider told TMZ that the Real Housewives of Beverly Hills star has no idea why her husband had the lingerie.
Girardi has been diagnosed with late-onset Alzheimer's disease and dementia. Last week, the Daily Mail reported that the former lawyer — who was placed in a conservatorship — was spotted checking into a senior living home in Burbank., Calif.