The mansion owned by Real Housewives of Beverly Hills star Erika Jayne and her estranged husband, disbarred attorney Tom Girardi, is set for auction on Oct. 18.
Jun and Peng Tao offered $7.5 million for the 4-bedroom, 9-bathroom Pasadena home, however, the accepted offer is subject to an overbid, according to Cayce Lynch, administrative partner for Tyson & Mendes in San Diego. "
“A higher offer may come in, preventing the buyers who offered $7.5 million from purchasing the property,” she said. “If the offer is accepted, the money received for the sale will be dispersed to creditors in a specific order.”
That priority includes secured claims, administrative expenses, priority claims, general unsecured claims, subordinated claims, and equity interests.
“If not enough money is raised to satisfy the debts owed to the creditors, the victims of the embezzlement may never recover the money that is owed to them,” Lynch told the Southern California Record.
The estate is part of an involuntary bankruptcy of the Girardi Keese law firm.
Girardi, 83, was charged with 14 counts of law violations, ethics rules, and acts of moral turpitude for allegedly robbing clients of millions of dollars in large settlement cases.
As previously reported, Girardi’s bankruptcy debt is estimated to be more than $517 million. Some $510 million must still be raised to satisfy the bankruptcy’s debts.
The court also ordered the sale of certain property from the mansion including furnishings, art, and sports memorabilia that are being sold online.
“The auction items may have been purchased by individuals who were fans of Tom Giradi or Erika Jayne and found the purchase exciting,” Lynch said. “They may also have been purchased by individuals looking for a lucrative sale.”
The value of the items will increase or decrease based on the potential buyer pool.
“Some individuals are willing to pay exorbitant amounts to own an item previously owned by a celebrity,” Cayce added. “It is likely the value of the items will increase or stay the same, however, and less unlikely the items will decrease in value due to the backstory.”
The disgraced Girardi, who is currently under a court-appointed guardianship, was once known for securing the highest medical malpractice judgment statewide as a recent law school graduate in the 1960s.