Erika Girardi, best known as the stage name of Erika Jayne. The actress shot into fame on reality television when she joined the show in the sixth season’s one-time extravagant mansion that she lived in with her ex-husband Tom Girardi has been sold to the public as part of the lawyer’s once-respected bankruptcy.
The home, which was 10,277 square feet was originally priced at $13 million. It was decreased to $8 million before they could find buyers. It was listed for nearly a year According to the Radar.
The profits generated from this sale is used for paying Erika and Tom’s huge debts. Girardi & Keese has been accused of being Ponzi schemes.
The trustee was required to reduce the price multiple times in the course of several months. Price was reduced down to $11.5 million, then reduced to $9.98 million, and finally to $8.9 million.
The house was on the market for a while with no sales and a number of creditor’s anger was expressed in court, with one requesting that the house be sold as soon as possible to make a cash flow.
In the first instance, as as Radar first revealed, Girardi and his law firm were forced into bankruptcy by a myriad of creditors. Financial records revealed that the now disbarred attorney operated his firm as an alleged Ponzi scheme.
Erika has repeatedly stated that she is not guilty of any wrongdoing in the legal proceeding against Tom and his company. Recently, a judge agreed to that of the “XXpen$ive” artist.
As per Los Angeles Magazine , Erika was disqualified as defendant in an action before Justice Richard L. Fruin of the Los Angeles Superior Court. The judge decided that Erika did not have “actual awareness” regarding any allegations in the lawsuit.
But, she’s still in trouble. Tom is facing the $4.5 million debt for the Internal Revenue Service.
The most significant portion of the debt he owes is $3.3 million in taxes Tom hasn’t paid in the year 2019. Tom also shirked off the amount of $760 during 2018 and $50k in the year 2020.
His tax-related debt of over $1 million was remitted with his IRS within his Chapter 7 bankruptcy case against the debtor. Erika is also owed $2.2 million in tax unpaid for the year 2019. The Bravo actress claims she’s unable to pay the outstanding debt.
New owners have been referred to as Jun Tao and Peng Tao. They were required to prove that they are not affiliated with Tom and his law firm, nor the trustee of bankruptcy. The Taos are now able to relax in their nine bedroom, four bedroom bathrooms California estate.