RHONJ star Teresa Giudice is due to report to a federal prison in Connecticut on Monday. Giudice will begin her 15-month jail sentence for bankruptcy, wire and mail fraud. Teresa’s husband Joe was sentenced to 41-months and will serve his sentence once his wife is released.
To refresh your memory, we have a timeline of the events that led to Teresa’s jail-sentence below.
June 2004: Joe Giudice claims Teresa has been self-employed and an owner of G&G Stucco, the company that Joe runs, for the last seven years. Joe also recorded that Teresa made $14,750 a month. The couple applied for a loan, and eventually received $20,200. The government says Teresa was unemployed for most of the decade.Â This is the first of several loans the Giudices applied for giving where they gave false information and/or fake W-2s and falsified tax returns.
September 2004: Three months after claiming she runs a construction company, another loan application states that Teresa now works as an executive assistant for Modern Era Investment Corp., earning $3,750 a month, and the couple received a $121,500 loan.
March 2005: Another loan application allegedly claims that Teresa has been the owner of G&G Stucco for six years, but has taken a pay cut and now sheâ€™s earning $12,100 a month. Joe and Teresa receive a $141,500 loan. April 2005: Joe Giudice fails to file an income tax return for 2004, when he earned $243,919. Joe didnâ€™t file tax returns for the next four years on nearly $1 million in income, the indictment states. However in the plea deal, he only admits guilt for failing to pay taxes in 2004.
July 2005: Now claiming that Teresa is working as a Realtor with Cresthill Realty, the Giudices submitted fake W-2s in order to get another loan. The W-2s claim Teresa is paid $15,000 a month, and they receive another loan for $361,250.
July 2005: Teresa buys a 3-bedroom home in Lincoln Park for $170,000. Joe and Teresa reportedly lives in the home while undertaking the expansion of their Montville home. After moving to Montville, they leased the Lincoln Park from April 1, 2009, to January 2012, collecting $42,968 in rent. They did not disclose this income in their initial bankruptcy filing.
November 2005: Using what the federal government claims are fake W-2s and fake tax returns, the couple seeks out a construction loan, and eventually they receive $800,000.
December 2006: Joe applied for the first of two home equity lines of credit, using fake tax returns and fake W-2s for both. He withdrew $251,360 from the first credit, and $170,252 from the second home equity line of credit.
February 2008: After joining the cast of RHONJ, the couple applied for and received a construction loan for $1.7 million. At this point, they allegedly lied about their income and submitted falsified documents to receive more than $3.5 million in loans and lines of credit.
June 2008: Teresa begins to receive income from various sources the government alleges, including $110,677 over the next year from Bravo, personal and magazine appearances and sales from her website.
July 2008: Joe and Teresa applied for and eventually receive another loan, this time for $1.72 million. They claim in the application that they have a private bank account with $500,000â€¦ which the government claims is not true.
August 2008: Joe creates an LLC called 1601 Maple Avenue, in which he collects rent from a gas station located at a Hillside address. The rent is not disclosed in their bankruptcy filing.
October 2009: The GiudicesÂ file for bankruptcy claiming they have $8.7 million in liabilities, including loans and unpaid bills to various banks, credit card companies, and lawyers. Other creditors include a $20,000 bill to Bloomingdaleâ€™s, Neiman Marcus and Nordstrom, and $12,000 to a fertility clinic. Joe claimed he made $3,250 a month as owner of G&G Stucco, and Teresa makes $3,333 a month from Real Housewives.
June 2010: The bankruptcy trustee representing the case claims the Giudices have hidden assets and income, including three vehicles, a boat, rent on the Hillside property, a $280,000 advance for Teresaâ€™s cookbook, and a monthly salary of $7,083 for â€œReal Housewives.â€
August 2011: Joe filed a consent order in which he is denied bankruptcy discharge after he plead the Fifth Amendment when asked about whether he hid assets and income in the bankruptcy filing. Teresa also abandoned her request for bankruptcy discharge a few months later.
July 2013: Teresa and Joe Giudice are indicted on 39 counts (soon to be 41) of bank, bankruptcy, wire and mail fraud. Prosecutors claim they lied to a number of banks to obtain millions of dollars in mortgages, hid assets and income in bankruptcy court, and failed to pay their taxes.
March 2014: Despite claiming they had no idea where the charges came from in an interview with Andy Cohen, the Giudices plead guilty to a handful of counts of mail and wire fraud, bankruptcy fraud and Joe pleads guilty to failure to pay taxes.
October 2014:Â U.S. District Court Judge Esther Salas sentences Teresa to 15-months in prison and Joe to 41-months in prison. Judge Salas agreed to stagger the couple’s sentences because they have four young children at home.
â€œI fully take responsibility for my actions,â€ Teresa told Judge Salas. â€œI deeply love my familyâ€¦ My four daughters are my life. I wrote this last night because I knew I was going to be nervousâ€¦ Iâ€™m scared, Iâ€™m not going to deny it, Iâ€™m really scared. I have heard you. I need to live to do things for myself. Itâ€™s time for me to wake upâ€¦ I will make this right no matter what it takes.â€
Teresa learns she will be serving her time at a Federal Correctional Institution in Danbury, Connecticut.
December 2014: Teresa sues her attorney over the guilty plea that landed her jail-time. In her malpractice suit, Teresa claims James Kridel failed to list her employment, income, automobiles, business interest, rental income and certain bank accounts in the bankruptcy filing.
January 2015: Teresa’s ex-lawyer James Kridel responds to the lawsuit. Kridel called the lawsuit “ridiculous” and denied the claims. “We did what we were supposed to do,” he said. “We can only rely on the facts that were provided to us. I don’t wish her any ill will, but I would have preferred a ‘thank you’ rather than a lawsuit.”
Special thank you toÂ NJ.com.
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