Girardi Keese Bankruptcy Trustee Sues Real Housewives of Beverly Hills Star, Erika N. Girardi, For Turnover of $25M, Says Girardi Allegedly Diverted the Firm Funds Towards Erika’s Purchase of Luxury Items
July 14, 2021, Central District of California – Last week, Elissa D. Miller, the Trustee behind the Girardi Keese bankruptcy case sued the Real Housewives of Beverly Hills star, Erika N. Girardi, and two other companies for more than $25 million. The Trustee claims that the Debtor allegedly diverted the firm funds towards Erika’s ‘extravagant lifestyle’. Additionally, the Trustee alleged that the Defendants “received more than $242,658 in lottery payments” (that allegedly belonged to the estate) and “did not repay” them to the estate.
Specifically, the Trustee accuses Erika of using her glamor and notoriety to continue to “aid and abet in sham transactions” that the Trustee claims occurred for large transfers of assets from the Debtor to the Defendants. The Trustee avers that Erika received jewelry and other luxury items using the Debtor’s funds. Further, the Trustee argues that the Defendants EJG and PMI are the “alter ego” of each other and Defendant Erika and “maintain such a unity of interest and ownership” that the separate personalities of the entities and the individual defendant no longer exist.
The Trustee seeks declaratory relief and judgment under Sec. 542, 548 of the Bankruptcy Code. The Trustee seeks to avoid and recover alleged transfers, alleging that the Defendants are in possession of money and property including, the lottery payments and the luxury items that rightfully belonged to the estate and were “fraudulently obtained” by the Defendants.
The case is In re: Girardi Keese, case no. 2:20-bk-21022-BR in the United States Bankruptcy Court for Central District of California December 2020. Honorable Barry Russell is overseeing the Debtor’s bankruptcy case.