KEY POINTS

  • Erika Jayne's husband Tom Girardi said in a court document that he doesn't have any money 
  • Girardi's lawyers said he got hospitalized and it was among the reasons he wasn't able to pay some of his clients 
  • Girardi's law firm was already in serious financial trouble since 2015, according to a report

Erika Jayne's husband Tom Girardi is already broke, according to a report.

A few weeks ago, Jayne, 49, and Girardi, 81, were sued for allegedly embezzling money from crash victims after she filed for divorce. Just recently, Girardi testified in an unspecified case and revealed that he doesn't have as much money as his creditors think, Page Six reported.

"At one point I had about 80 million or 50 million in cash. That’s all gone. I don’t have any money," he said.

The federal judge froze Girardi's assets and called his mishandling of the Indonesian children's money "unconscionable," the Los Angeles Times reported Thursday. 

The lawyer is facing multiple lawsuits for allegedly mishandling his clients' funds. Earlier this month, a complaint was filed in an Illinois federal court by the law firm Edelson PC on behalf of several families who lost their loved ones from the Boeing plane crash in 2018. They accused Girardi of embezzling the money to fund his and his wife Erika's lavish lifestyles.

His attorneys claimed that Girardi suffered a "serious illness" in the recent months and that he needed hospitalization. They alleged that Girardi's hospitalization was the "mistake" that caused some families to not receive full payment in their settlement.

The lawsuit also alleged that his firm, Girardi & Keese (GK) is "on the verge of financial collapse and locked in a downward spiral of mounting debts and dwindling funds." It also alleged that Erika only filed for divorce to "hide and divert assets."

"While Erika publicly filed for divorce this month, on information and belief, that ‘divorce’ is simply a sham attempt to fraudulently protect Tom’s and Erika’s money from those that seek to collect on debts owed by Tom and his law firm GK," the court documents indicated.

There were already hints that Girardi's law firm was in serious financial trouble since 2015, per the LA Times. At the time, Girardi took one of the David-versus-Goliath cases — a $17 million settlement for 138 senior citizen women who claimed they developed cancer after taking a hormone replacement therapy. The women's payout from Girardi's firm did not match the amount they anticipated, so they requested an accounting, but the firm refused.

The women's lawyers alleged in the filings that Girardi's firm misappropriated over $10 million and claimed the held-back documents "would reveal the fraudulent and criminal nature of their wrongdoing."

When the case moved toward trial, Girardi borrowed $12 million at a high interest rate from a Northern California company that specialized in funding law firms. He also borrowed another $5 million from a similar lender in Arizona. Within months he reached a settlement with the cancer survivors.

At present, he has rejected Jayne's request for spousal support. Girardi wants her to pay for his attorney's fees instead.

Erika Jayne “Real Housewives of Beverly Hills” star Erika Jayne is pictured Feb. 12 in Los Angeles. Photo: Getty Images