Dinsmore says it won’t dump client Erika Jayne Girardi as allegations mount

Thomas Girardi in Los Angeles, June 26, 2014. REUTERS / Irfan Khan / Pool

  • Bankruptcy Lawyer Says Erika Jayne Girardi Received Over $ 20 Million From Closed Girardi Keese Firm
  • Dinsmore withdrew a two-day-old motion to stop representing Tom Girardi’s ex-wife

(Reuters) – Two days after telling a bankruptcy judge it had to step down from representing Erika Jayne Girardi, Dinsmore & Shohl said it was now withdrawing its 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.

Thursday, Peter Mastan, managing partner of Dinsmore’s Los Angeles office, informed US Bankruptcy Judge Barry Russell and Chapter 7 Trustees Overseeing Estates of Tom Girardi and His Closed Law Firm Dinsmore “Denies and Voluntarily Withdraws” His Earlier Motion to Withdraw as Erika Jayne Girardi’s Attorney .

A spokesperson for Ohio-based Dinsmore confirmed that 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 called to serve as special litigation adviser to Chapter 7 administrator Elissa Miller, alleged that Erika Jayne Girardi’s businesses have received over $ 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 included in a request for a court order to compel Erika’s owner Jayne Girardi to turn over records in an effort to determine whether she used funds “fraudulently obtained” from the closed Girardi Keese company to pay. his home in Los Angeles.

Richards also noted Dinsmore’s quick turnaround when he represented Girardi, writing that he was concerned that “if the investigation proceeds quickly, Erika may further dissipate the debtor’s 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 company 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 Girardi’s wife

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