According to court documents, 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 the creditors. Among the possible assets to be recovered are the millions of dollars of settlement proceeds, which the Debtor may have transferred to Erika.”
Due to the mounting legal matters, the trustee’s special litigation counsel “is concerned that absent the investigation occurring rapidly, Erika may further dissipate the Debtor’s assets. 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.”
Back in November 2020, Erika, 49, filed for divorce from Tom, 82, after 21 years of marriage. The breakup is currently being played out on the new season of Real Housewives of Beverly Hills.
Following the divorce filing, Tom has found himself involved in multiple lawsuits including a civil suit in which the attorney is accused of fraud and embezzling money from a Boeing 737 airplane crash settlement fund. Erika was named as a defendant in the complaint because the plaintiff firm Edelson PC alleges Tom was motivated to embezzle the money “in order to continue funding his and Erika’s lavish Beverly Hills lifestyles.”