Over the past couple of years, Real Housewives of Beverly Hills star Erika Jayne and her husband Tom Girardi have found themselves in some serious legal trouble over unpaid debts. Now, it looks like the couple is making some progress by making payments to creditors, but there is still a long way to go.
According to The Blast, Girardi recently paid $2,982,272.42 towards a $6 million debt that he owed to Law Finance Group after they sued him over an unpaid loan. In their lawsuit, Law Finance Group claimed that they loaned Girardi $15 million a few years ago, but he only paid back $10 million.
The creditor ended up getting a judgment against Girardi for $6 million – which included the unpaid amount plus interest and fees – and Girardi has knocked that debt in half with just one payment.
When Law Finance Group sued Girardi and his law firm Girardi Keese, they claimed that he was using his money to maintain his “lavish lifestyle” that he enjoys with Jayne instead of paying them what he owed. In August, the company filed documents with the court requesting that Jayne appear in court because they believed she was in possession of property that Girardi owned.
Law Finance Group has been trying for more than a year to get Girardi to pay his debts. They agreed to a repayment plan in August 2018, and Girardi was supposed to make monthly payments plus a $1 million payment in October 2018 and a $5 million payment by January 1, 2019, but he ended up breaching that agreement.
The lender also claimed that when Girardi took out the loan he agreed to put his Pasadena home – which is featured on RHOBH – up for collateral in case of default. Law Finance Group also accused Girardi of making “hollow promises” and never keeping his word.
“The truth of the matter is this. I have not taken one penny from the law firm in the past three years. I have devoted everything to assist in the cases that we have here,” said Girardi. “Further, the money that was borrowed, we agreed to repay in approximately two weeks before the lawsuit. It is slanderous that the money was for my ‘lifestyle’ … every penny went for costs in cases that the firm is handling.”
Even though Girardi and Jayne have paid down half their debt to Law Finance Group, they are still facing a separate $3 million lawsuit over another unpaid loan.
New episodes of Real Housewives of Beverly Hills return to Bravo in 2020.