He was known throughout California for fighting for the rights of the little guy. Inspiring the plot of the Stephen Spielberg movie Erin Brockovich, Tom Girardi’s firm was instrumental in having residents who suffered health impairments from a water receiving of millions of dollars from Pacific Gas & Electric.
Though, after it was revealed that the lawyer had misappraised more than $2 million from his clients, his firm is bankrupt with more than $100 million in debt.
RELATED: 4 Ways Kanye West Turned $53 Million In Debt Into A Billion Dollar Net Worth
According to documents obtained by PEOPLE, the $101 million debt is roughly $93 million more than the totality of his listed assets. The documents go on to state that the debtor’s accounting offices severely dropped the ball.
“Much of what the trustee found upon her appointment was very dated,” the document reads. It states that the firm’s records may, “not have listed all of the debtor’s causes of action or potential causes of action against third-parties as assets.”
Thus, unfortunately for Girardi, “the actual total may be different than the listed total.”
Along with the nearly $4.1 million in personal property assets, the trustee’s findings also discovered $25 million which were distributed to ex wife and Real Housewives of Beverly Hills cast member Erika Jayne’s entertainment company.
A post shared by ＥＲＩＫＡ ＪＡＹＮＥ (@theprettymess)
The former couple’s assets were frozen by the court when they were accused of misusing funds intending for the victims of the 2018 Lion Air – clients of Girardi’s firm. It was the subject of the Hulu documentary The Housewife and the Hustler in which victims spoke up about the mistreatment they received from Girardi’s firm and how the money was used funneled into his and Erika Jayne’s lavish lifestyle. Recently, the story is even becoming a reoccurring subject of conversation on the Real Housewives of Beverly Hills.
In lieu of the emending bankruptcy, Girardi’s firm went to auction a number of items from its office. Along with business machinery and equipment, the firm sold a signed poster of Julia Roberts in Erin Brockovich.
Girardi was recently seen in an assisted living facility where he’s being treated for dementia.
“I think what has happened to Tom here is that he’s not mentally capable, and he’s in sole control of his firm. And I think that it got away from him,” Jayne says on episode of RHOBH.
Read Next: Despite Bankruptcy, Casa Bonita Refuses To Sell Restaurant To South Park Creators
Sources: PEOPLE, Fox Business, Page Six
Source: Read Full Article