Erika Girardi's businesses have received over $20 million in loans from her estranged husband Tom Girardi's Los Angeles law firm, Girardi Keese, according to a motion filed by the bankruptcy trustee investigating Tom Girardi's assets.
In the documents obtained by PEOPLE, the bankruptcy trustee says she needs to investigate "witnesses who may have first-hand knowledge of this widespread fraud," including Erika's new landlord Benjamin Khakshour.
"The Trustee is six months into her administration of the estate, and is beginning to unravel the numerous transactions which may be avoidable and recoverable for the benefit of creditors," the legal document states. "Among the possible assets to be recovered are the millions of dollars of settlement proceeds which the Debtor may have transferred to Erika."
So far, the trustee's special litigation counsel has confirmed that "settlement funds were diverted to Erika," the document states.
Jerritt Clark/Getty; Steve Eichner/Sipa
"The Debtor has admitted in numerous filed tax documents that Erika's related companies have received over $20,000,000 according to the tax documents spanning multiple years," the trustee alleges. "Erika has created a new company after the news broke of this scandal which appears to simply be a successor company. Erika has multiple financial accounts and the Debtor's books show Erika owes large receivables to the Debtor."
The trustee's filing claims Erika's legal representatives were provided with "irrefutable evidence" supporting the allegations. Days later, the Real Housewives of Beverly Hills star's attorneys asked the court for permission to withdraw from being her counsel.
Steve Eichner/AP Erika Girardi and Tom Girardi
"Due to the mounting legal matters, the SLC [special litigation counsel] is concerned that absent the investigation occurring rapidly, Erika may further dissipate the Debtor's assets," the court doc states. "The necessity to trace her money and investigate the receipt of funds, her purchases including the bling and the glam, (diamonds and high expenditures of beauty maintenance, etc.) has become more heightened by these recent events."
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Erika, 49, filed for divorce from Tom, 82, in November 2020 after 21 years of marriage. In the months since the divorce filing, Tom has been entangled in multiple lawsuits, one of which includes his and Erika's alleged embezzlement.
The former couple's legal woes were recently the subject of a new ABC News Originals documentary, titled The Housewife and the Hustler.
Erika has briefly addressed her divorce on RHOBH's current 11th season. During last week's episode, she opened up about how challenging the separation is. "There's so many layers to this divorce," she said. "It's so f------ complicated. It's very difficult to explain."