After her husband Russell committed suicide last year, Taylor Armstrong inherited the financial mess he left behind, which included a major lawsuit from a company from which he allegedly defrauded $1.5 million. Taylor has finally settled the case out of court and, having little liquid assets, was required to turn over "valuable" personal property, like her engagement ring and her Hermès Birkin handbags—which turned out to be knockoffs.
Russell Armstrong, who had a long history of shady dealings, had been raising capitol for a startup called MyMedicalRecords.com, which he allegedly pocketed with Taylor's help. Russell was forced out of the company and paid MMR $250,000. A legal settlement—signed by both Taylor and Russell—required the Armstrongs to list every investor from whom they'd received money. When MMR discovered that the Armstrongs had withheld the names of three different investors who'd contributed a substantial amount of money, the company filed a lawsuit for $1.5 million. Two weeks later, Russell hanged himself.