Erika Jayne is facing a mountain of legal problems between bankruptcy, divorce and an embezzlement lawsuit against her estranged husband Tom Girardi.
The 49-year-old reality star has reportedly switched lawyers in an ongoing chapter 7 bankruptcy, according to documents obtained by Us Weekly on Tuesday.
Her attorney, Peter Matsan, filed paperwork to be taken off of Erika’s case following the release of Hulu’s explosive documentary about her troubles titled The Housewife and the Hustler.
Legal woes: Erika Jayne has reportedly switched lawyers in an ongoing chapter 7 bankruptcy, according to documents obtained by Us Weekly on Tuesday
Matsan will now be off the case moving forward and replaced by Evan C. Borges, as of July 5th.
In his motion to be removed last month, the lawyer reportedly cited the Hulu doc – which included interviews with Tom Girardi’s former clients about his alleged embezzlement of settlement funds – as the reason for his departure.
‘The relationship of trust and confidence that is essential to a properly functioning attorney-client relationship has broken down and, in the good faith assessment of counsel, the relationship is irreparable,’ read the petition, according to Us Weekly.
This comes after Erika slammed another one of the attorneys working on the bankruptcy just a few weeks back.
‘The relationship of trust and confidence that is essential to a properly functioning attorney-client relationship has broken down and, in the good faith assessment of counsel, the relationship is irreparable,’ read Erika’s former lawyer wrote in a petition, according to Us Weekly
In previous court documents, Erika demanded that attorney Ronald N. Richards be booted from the case for making ‘false and inflammatory social media posts and public statements’ about her.
Petitioning creditors made the allegations about Jayne’s cooperation in a motion which accused Jayne of declining to submit bank statements to the investigator. Jayne is also accused of using her companies to conceal her assets.
Problematic: In his motion to be removed last month, the lawyer reportedly cited Hulu doc The Housewife and the Hustler – which included interviews with Tom Girardi’s former clients about his alleged embezzlement of settlement funds – as the reason for his departure
Erika’s estranged husband Tom and his former law firm, Girardi & Keese, filed for bankruptcy last year, after they were sued for allegedly embezzling their clients money.
A recent motion filed in the bankruptcy alleged Jayne’s companies had received $20 million in loans from the firm in recent years.
The RHOBH star’s accountant, divorce lawyer and landlord have all recently been ordered to turn over her financial records as part of the lawsuit and bankruptcy.
People Magazine reported that Erika will have to provide bank statements and other documents as part of a lawsuit, after she had previously refused.
The order comes as a bankruptcy trustee continues to investigate Girardi’s assets, amid claims that the couple allegedly embezzled settlement funds that were meant to help the families of plane crash victims on Lion Air Flight 610.
However, according to legal documents obtained by the outlet, Jayne’s lawyers were already maintaining that the reality star ‘has been and remains willing to cooperate fully with the Trustee’s investigation in this bankruptcy of debtor Girardi & Keese.’
Accusations: Erika’s estranged husband Tom and his former law firm, Girardi & Keese, filed for bankruptcy last year, after they were sued for allegedly embezzling client settlement money
Girardi’s legal license in California was revoked in March, the same month he was diagnosed with Alzheimer’s.
Girardi faces a litany of legal problems, including a $2 million class action lawsuit claiming fraud and embezzlement from the firm Edelson PC in connection with the 2018 Lion Air Flight 610 crash, in which all 189 people onboard died.
He and Jayne were sued for allegedly embezzling funds meant for families of victims, while Edelson PC, a firm for their ex clients, said in court docs their divorce last fall was orchestrated to ‘fraudulently protect Tom and Erika’s money’ as they’re ‘on the verge of financial collapse.’
In the Hulu documentary The Housewife and the Hustler, attorney Sunny Hostin pointed out that Erika is seeking to have her high-dollar items classified as ‘separate property’ in their split, claiming they were ‘gifts to her.’
Shortly before the embezzlement lawsuit was filed, Erika filed for divorce from Tom after two decades of marriage.
The divorce was labeled a sham by creditors in their bankruptcy case who alleged that the dissolution of their marriage was done in effort to further hide their assets. Allegations that Erika has since denied.
Falling apart: Shortly before the embezzlement lawsuit was filed, Erika filed for divorce from Tom after two decades of marriage