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Thomas Girardi in Los Angeles, June 26, 2014. REUTERS / Irfan Khan / Pool
Bankruptcy attorney says Erika Jayne Girardi received more than $ 20 million from the closed Girardi Keese company. Dinsmore withdrew a two-day-old motion to stop representing Tom Girardi’s ex-wife
(Reuters) – Two days after telling a bankruptcy judge he had to step down from representing Erika Jayne Girardi, Dinsmore & Shohl said he was now withdrawing his withdrawal.
The reversal comes as a lawyer investigating alleged transfers between Girardi and her ex-husband Tom Girardi’s law firm now claims that Girardi Keese transferred more than $ 20 million to the reality TV star.
On Thursday, Peter Mastan, managing partner of Dinsmore’s Los Angeles office, briefed US bankruptcy judge Barry Russell and Chapter 7 administrators overseeing estates of Tom Girardi and his closed law firm that Dinsmore “rejects and voluntarily withdraws »his previous motion to withdraw. as counsel to Erika Jayne Girardi.
A spokesperson for Ohio-based Dinsmore confirmed the company is keeping the “Real Housewives of Beverly Hills” star as a client.
The spokesperson declined to comment further. Mastan, in the eight-page motion, did not say what prompted the company’s overthrow. On Tuesday, the firm decided to abandon Girardi as a client for what it called “a fundamental and material rupture” in their lawyer-client relationship.
The representation flip-flop comes as lawyers for the Chapter 7 trustees have begun investigating whether Tom Girardi and his law firm fraudulently transferred assets to his ex-wife.
On Friday, Ronald Richards, a California lawyer appointed to serve as special litigation adviser to Chapter 7 administrator Elissa Miller, alleged that Erika Jayne Girardi’s companies received more than $ 20 million from Girardi Keese.
“Among the assets likely to be recovered are the millions of dollars of the settlement proceeds that the debtor was able to transfer to Erika,” Richards wrote, adding that he “had already corroborated that the settlement funds had been diverted to Erika. “.
Richards alleged that Girardi had “improperly” received funds that were intended for the company for years.
These allegations were contained in a request for a court order to compel Erika owner Jayne Girardi to turn over records in an attempt to determine whether she used funds “fraudulently obtained” from the closed Girardi Keese company to pay. his Los Angeles home.
Richards also noted Dinsmore’s quick turnaround on Girardi’s portrayal, writing that he feared that “if the investigation proceeds quickly, Erika may further dissipate debtors’ assets.”
Erika Jayne Girardi did not respond on Twitter to a request for comment. A spokesperson for Dinsmore declined to comment on the new allegations.
Tom Girardi and his firm were forced into bankruptcy in January by creditors who said the plaintiffs’ prominent lawyer owed them millions of dollars.
The cases are In re Thomas Vincent Girardi, US Bankruptcy Court for the Central District of California, 2: 20-bk-21020 and In re: Girardi Keese, US Bankruptcy Court for the Central District of California, 2: 20-bk-21022 .
Read more:
Dinsmore dumps Erika Jayne Girardi as client over ‘damaged’ relationship
Judge authorizes lawyer to investigate alleged transfers to Tom Girardis’ wife
David thomas
David Thomas reports on legal affairs including law firm strategy, hiring, mergers and litigation. He is based in Chicago. He can be reached at [email protected] and on Twitter @ DaveThomas5150.
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