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Attorney James “Jim” Wilkes, who represents Erika Jayne, is no longer embroiled in a lawsuit that alleged he misappropriated millions in COVID-19 relief funds to support the extravagant lifestyle of the The Real Housewives of Beverly Hills star.

The legal battle was initiated by designer Christopher Psaila, who filed an $18 million lawsuit against Erika Jayne in 2023. Psaila accused her of wrongly claiming he made $800,000 in fraudulent credit card charges. Psaila, along with his business partner Marco Morante, later sued Wilkes, alleging he deliberately stalled their case against Erika Jayne while falsely obtaining government funds intended for pandemic relief. However, a Florida judge has since dismissed their case.
According to a report from Reality Tea, which referenced Bloomberg Law, court documents from December 4 indicate that the judge dismissed the lawsuit filed by Psaila and Morante’s fashion company, Marco Squared LLC, due to a failure to disclose their citizenship. Such disclosure is necessary to establish federal diversity jurisdiction in these cases.
The judge also criticized the lawsuit for “shotgun pleading,” meaning it relied on vague and non-specific allegations rather than concrete claims against Wilkes. Additionally, the judge noted that the plaintiffs appeared to use sensationalist “tabloid headlines” to substantiate their case. Nonetheless, Psaila and Morante have been given a 21-day window to submit an amended complaint addressing these issues.
The judge also said the company was “shotgun pleading,” which means that they filed a case with “conclusory, vague, and immaterial facts,” rather than specific accusations against Jim. They were also accused of using “tabloid headlines” to build their case. However, it may not be completely over quite yet because Christopher and Marco have 21 days to file an amended complaint with their errors corrected.
Back in November, a report from Radar Online shared details of Christopher’s lawsuit against Jim, which included Christopher alleging that Jim had been dishonest about his staff.
James falsely “represented to the PPP that his firm had 40 full-time positions more than it actually had,” he claimed.
He then gave a nod to Erika, suggesting that Jim funneled money to the RHOBH cast member.
“The source of the funds that Wilkes used to pay, invest in, or loan Erika Jayne and her team, and to pay attorneys to defend Erika Jayne and team in other lawsuits, were two Covid loans from the Paycheck Protection Program (‘PPP Loans’) in the amounts of $2,393,079 and $2,000,000,” his federal lawsuit explained. “The U.S. Small Business Administration forgave both of these loans, which were meant for salaries for employees who would otherwise be laid off due to the COVID-19 pandemic.”
The Real Housewives of Beverly Hills season 15 premieres tonight at 8/7c on Bravo.