At this point, we’re used to seeing various Real Housewives in financial peril, but the 39-count indictment of federal fraud and tax charges that Teresa and Joe Giudice are facing is some next-level courtroom drama shit. According to legal experts, they will both serve time in a federal prison.
Have you read the full indictment against them? It’s bad. Really bad. And it might be difficult for Teresa to play the part of the unwitting housewife because all of the alleged fraud was done in her name. According to the feds, between the years 2001 – 2008—when Teresa was a stay-at-home mom, earning no income—the Giudices obtained eight different loans and mortgages by submitting falsified W-2 forms and pay stubs to convince the lenders that she was steadily employed. The kicker is that the Giudices were not consistent in their (alleged) lies, so when reviewed all together, the conflicting information on the different loan applications is pretty damning. Here’s a brief rundown:
- In a 2001 loan application to HomeComings, the Giudices stated that Teresa was an Executive Assistant at Modern Era Investment Corp., where she was employed for four years, earning $3750 a month. HomeComings issued her a mortgage of $121,500.
- In a 2004 loan application to Eastern American, they stated that Teresa was a self-employed owner of G&G Stucco earning $14,750 a month for the past seven years. Eastern American issued her a mortgage of $20,200.
- In a March 2005 loan application to Alterna, they stated that Teresa was a self-employed owner of G&G Stucco earning $12,100 a month for the past six years. Alterna issued her a mortgage for $141,550.
- In a November 2005 loan application to Park Avenue, they submitted fraudulent tax returns. Park Avenue issued them a construction loan for $800,000.
- In a 2006 loan application to Wachovia, they submitted fraudulent tax returns and received a home equity line of credit, from which he withdrew $251,360.
- In a 2007 loan application to Wachovia, they submitted fraudulent tax returns and W-2 forms and received a home equity line of credit from which he withdrew $170,252.
- In a February 2008 loan application to Sterling, they submitted fraudulent W-2 forms. Sterling issued them a construction loan for $1.7 million.
- In a July 2008 loan application to CBBC, they submitted fraudulent tax and W-2 forms and falsely stated that they had a private bank account containing $500,000. CBBC issued them a loan for $1.72 million.
So between 2006 – 2008, they had received close to $4 million dollars in loans. And then they filed Chapter 7 bankruptcy in October 2009.
However, they allegedly concealed assets from the bankruptcy court so that their lenders couldn’t cash in on the debt. Over the two-year process of their bankruptcy, they failed to disclose the several LLCs (limited liability companies) they had formed in early 2009. They also failed to disclose Teresa’s true income from The Real Housewives of New Jersey and paid personal and magazine appearances, as well as income from a rental property. They also failed to disclose their anticipated increase in income, coming from deals she’d struck—before filing for bankruptcy—for her second season of the Bravo show and her first cookbook that were both paid out after the bankruptcy filing.
(It didn’t help matters that Teresa went on a $60,000 spending spree after filing for bankruptcy.)
To top it off, Joe didn’t pay income tax for five years in a row.
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