Teresa And Joe Giudice Indicted On 39 Counts Of Fraud
The Real Housewives of New Jersey's most infamous couple are facing some serious charges stemming from their bankruptcy case in 2009 in which the U.S. Attorney's Office is alleging they conspired to defraud lenders to illegally obtain mortgages and loans and hide assets, according to a statement released July 29.
The reality stars have been charged with conspiracy to commit mail and wire fraud, bank fraud, making false statements on loan applications and bankruptcy fraud in a 39-count indictment.
The indictment also charges Joe (real name Giuseppe) with failure to file his tax returns from 2004 to 2008 after earning nearly $1 million.
“The indictment returned today alleges the Guidices lied to the bankruptcy court, to the IRS and to a number of banks,” U.S. Attorney Paul J. Fishman said. “Everyone has an obligation to tell the truth when dealing with the courts, paying their taxes and applying for loans or mortgages. That’s reality.”
If you’re memory of all the Housewives drama is a bit fuzzy, let’s clear it up for you.
This all comes before and after Joe decided to withdraw his bankruptcy petition in 2011 after he and his wife filed Chapter 7 two years prior to the tune of $11 million.
“Today’s indictment alleges the Giudices did not live up to their responsibilities by failing to file tax returns, falsifying loan applications and concealing assets in their bankruptcy petition. The reality is that this type of criminal conduct will not go undetected and individuals who engage in this type of financial fraud should know they will be held accountable,” added Shantelle P. Kitchen, Special Agent in Charge of the IRS-Criminal Investigation in Newark, New Jersey.
Here is a play-by-play of the couple's alleged criminal activity:
- From September 2001 through September 2008: The Giudices allegedly committed mail and wire fraud conspiracy when they submitted fraudulent mortgage and other loan applications to lenders and lied about their employment status and massive salaries.
Here’s a doozy -- In September 2001, Teresa allegedly applied for a mortgage loan of $121,500 and falsely claimed on the documents that she was an executive assistant, submitted fake W-2 forms and paystubs by this phantom employer, according to the release.
- The release also cites the Giudices Chapter 7 bankruptcy filing in 2009 when they intentionally covered up money they made from a rental property (nearly $43,000) and Teresa's income (over $110,000) from the Housewives, her website sales and personal and magazine appearances.
- The indictment also alleges that even before the headline-making couple became famous on the hit Bravo show, Teresa’s burly hubby made $996,459 between 2004 and 2008, but didn’t file tax returns.
And to top it off, they are looking at even more serious time behind bars -- up to 50 years in prison!
That is, for each charge: Up to 20 years in the pokey and a $250,000 fine for mail and wire fraud, up to 30 years and a $1 million fine for bank and loan application fraud, and up to five years in the slammer and $250K fine for bankruptcy fraud.
While solo, Joe is facing up to a year in prison and a $100K fine for not filing his tax returns for four years.
To make their legal matters worse, Joe is already facing over 11 years in prison after he was charged in 2011 with fraudulently obtaining a phony driver’s license.
Attorneys for the Giudices were not available for comment.