Erika Jayne accused of delaying $5 MILLION fraud lawsuit against her by not filing company taxes
Erika Jayne has been accused of trying to slow down a $5 million fraud lawsuit against her by refusing to file her business taxes.
Law firms Philip R. Sheldon and Robert P. Finn, which are suing Jayne, 50, say she is trying to ‘gain an unfair advantage in the litigation,’ according to court documents obtained by page 6.
The statement, which was filed Thursday in California Superior Court, accuses the reality TV star of being aware that his company EJ Global has been suspended by the California Franchise Tax Board, which they say delayed the trial discovery process.
Go slow: Erika Jayne, 50, was accused of trying to delay a $5 million fraud lawsuit against her in court documents obtained by Page Six on Thursday; seen in May in NYC
The filing also claims that Jayne has been aware of the suspension since at least February 5 of this year.
“Yet 110 days later, EJ Global has done nothing to release the LLC from suspended status,” wrote attorney Ronald Richards, who represents the law firms.
According to Richards, her clients are unable to properly access EJ Global documents through discovery due to the suspension, and the delay could help Jayne’s position.
“The plaintiffs cannot wait any longer because now Erika Girardi is using the suspension to gain an unfair advantage in the litigation,” he added.
The law firms filed suit against Jayne and Girardi, accusing them of fraud and breach of contract.
They claim they were not paid after receiving part of the lawsuit settlements handled by Girardi’s law firm, Girardi & Keese.
Taking his time: Attorney Ronald Richards accused Jayne of not moving to get his LLC EJ Global out of a suspension by the California Franchise Tax Board; seen with Tom Girardi in 2016
They claim the missing money was transferred to EJ Global, where it allegedly helped pay for Jayne’s luxury purchases.
Girardi reportedly gave him $25 million over 12 years, but Richards says his clients deserve $5 million of that.
Time is running out, as a hearing is scheduled for July 21, 2022.
In his filing, the attorney urged the court to order Jayne to file the EJ Global tax returns, which would be necessary to release him from the suspension, within 10 days from Thursday.
But Evan C. Borges, who is representing Jayne in the ongoing lawsuit, has tried to blame the suspension on her ex-husband Tom Girardi, who has Alzheimer’s disease and lives in a nursing home. memory care.
“The suspension of EJ Global LLC is part of the mess that Tom Girardi [TG]Girardi & Keese [GK]and their outside accountants got rid of Erika and let her sort it out — with no access to records,’ Borges said in a statement to Page Six on Thursday.
He alleged that Girardi, along with Girardi & Keese and its accounts, had “always managed the finances of EJ Global LLC, not Erika”.
No Hurry: Richards alleges that Jayne knew the LLC had been suspended since February and that she would have to file her taxes to end the suspension, which she has yet to do; always from RHOBH
This would suggest that the financial records needed to properly file LLC taxes were held by the accountants who previously worked for the company.
Jayne’s attorney added that she was the “interest holder” of the LLC, but he claimed it was “virtually impossible” for her to “figure out how to file tax returns without any financial records.”
“We haven’t given up trying, but without any records it’s an extremely difficult task. Sheldon’s plaintiffs and their attorneys on Twitter have no case,’ he claimed in the statement.
“Their entire case is based on unethical cost-sharing agreements with GK, which are unenforceable,” he added.
The outlet also reported that Borges previously filed a motion on May 17 asking that Jayne’s financial records be kept confidential.
He asserted in the filing that “the information contained in the Confidential Documents has no bearing or relevance to any of the claims or defenses in this action.”
Change of responsibility: Jayne’s lawyer disputed the allegations and said that Girardi, his law firm and his accounts were responsible for the tax returns of Jayne’s LLC
In a response, Richards accused Borges’ request of being “baseless”, and he said his clients were “crippled by the use of identity [of EJ Global’s funding source] to explain why complainants are investigating where their money is going or why they are asking about certain people.
Asked about his request to keep Jayne’s financial details confidential, Borges told Page Six that his motion “speaks for itself.”
He accused the plaintiffs in the lawsuit of trying to “publicize” how his client “obtained funds from another citizen to help pay her bills.”
Borges also suggested in her statement that the fact that she received help means she could not hide a large amount of funds from plaintiffs.
“The fact that Erika needed the help of others to pay her bills shows that there is no hidden treasure she ever took for herself that truly belonged to the estates of Girardi or Girardi. & Keese.”
Turning the tables: Jayne’s attorney claims plaintiffs in lawsuit acted with her ex Girardi to ‘violate ethical rules’; always from RHOBH
Borges’ statement accused the plaintiffs of apparently wanting to embarrass Jayne, as he claimed that the administrator of Girardi & Keese had already received the information due to the plaintiffs’ “threat to pay me money” otherwise “I make public”.
He concluded by saying that his client wanted to “protect EJ Global LLC”, but that she would “not pay her taxes and, under the law, cannot protect her LLC from this matter while she is suspended”. .
The lawyer also suggested that it was ridiculous that his client, ‘as a non-lawyer with a separate career as an artist, somehow managed the finances of the law firm and somehow participated in the decisions made by TG and GK not to pay illegal fee-sharing to plaintiffs Sheldon.
Legal woes: Jayne was hit with a $2.1 million lawsuit in February 2021 and a $50 million racketeering lawsuit last month; seen in December in Santa Monica
This is just the latest legal issue for Jayne, who was previously named in a $2.1million lawsuit in February last year for allegedly aiding her ex-husband’s embezzlement scheme.
Her situation became even more serious in April this year, when she was the target of a $50 million racketeering lawsuit.
Her ex has been accused of embezzling settlement funds intended for the families of the victims of Lion Air Flight 610, which crashed into the Java Sea in 2018, killing all 189 passengers and crew on board.