Teresa Giudice and her husband, Joe, have been charged with several instances of financial fraud. If they are convicted, they could each serve more than 50 years in prison. “The indictment returned today alleges the Guidices lied to the bankruptcy court, to the IRS and to a number of banks,” US Attorney, Paul 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.”
Some of the charges include; conspiracy to commit mail and wire fraud, bank fraud, lying on loan applications and bankruptcy fraud. Joe is also being charged with failure to file tax returns for 2004 through 2008. On certain loan applications, Teresa and Joe allegedly made up fake jobs and salaries to get larger loans from the banks. They also allegedly used fake documents in a conspiracy to get mortgages and loans they did not deserve.
For example, Teresa claimed to be an executive assistant to get a loan for $121,500, and even allegedly submitted fake W-2 forms and fake pay stubs. Teresa also allegedly hid her income from Bravo when filing for bankruptcy in 2010.
If convicted, the punishments could be: Up to 20 years in prison and $250,000 fine for mail and wire fraud, up to 30 years in prison and $1 million fine for bank fraud, up to five years in prison and a $250,000 fine for bankruptcy fraud, and failure to file tax returns nets up to one year and $100,000 fine for each year.
“The privilege of living well in the United States carries certain real responsibilities, including filing tax returns when required and paying the correct amount of tax,” Shantelle P. Kitchen, Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office, said. “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.”
Teresa released a statement, saying, “Today is a most difficult day for our family. I support Joe and, as a wonderful husband and father, I know he wants only the best for our lovely daughters and me. I am committed to my family and intend to maintain our lives in the best way possible, which includes continuing my career. As a result, I am hopeful that we will resolve this matter with the Government as quickly as possible.”
Teresa’s attorney says she will plead not guilty and that “we look forward to vindicating her.”
Click here to read the official indictment.
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