LAS VEGAS, NV - MARCH 13: Television personality Teresa Giudice displays a bottle of her new... [+]
Things are about to get even more real for two of the stars of "The Real Housewives of New Jersey." Teresa Giudice and her husband, Giuseppe "Joe" Giudice, of the Bravo reality TV show were indicted today on 39 counts of conspiracy to commit mail and wire fraud, bank fraud, making false statements on loan applications and bankruptcy fraud. The charges, which were handed down by a federal grand jury also include separate charges for Giuseppe Giudice for failure to file federal income tax returns for tax years 2004 through 2008.
According to the indictment, Giuseppe and Teresa Giudice allegedly engaged in a mail and wire fraud conspiracy beginning in 2001. At the time, and continuing for a period of several years, the Giudices reportedly submitted fraudulent mortgage and other loan applications and supporting documents to lenders in order to obtain mortgages and other loans. Notably, the Giudices claimed that they were receiving substantial salaries during those years when the facts do not support those claims. As part of the scheme, Teresa Giudice allegedly submitted fake federal forms W-2 and fake pay stubs to lenders.
In 2009, the Giudices filed for Chapter 7 bankruptcy protection in U.S. Bankruptcy Court in Newark, New Jersey. While the Giudices were apparently living a life of luxury so far as the public could see, the petition tells a much different story:
In the petition, the Giudices claimed ownership in real property worth more than $2.2 million but stated that the secured claims against those properties exceeded the value - in at least one instance, there were a total of four mortgages on one property. The total value of the claims against the properties was listed at more than $2.5 million.
And despite the flashy clothes and jewelry Teresa flaunted on the show, the Giudices claimed that their personal property was worth just $24,150. That included the family's wardrobe (listed at a mere $3,000) and Teresa's jewelry, said to be "costume" and worth just $750.
In addition to the mortgages, the Giudices racked up more than $3 million in personal debt. That debt included tens of thousands of dollars in credit card bills, including thousands of dollars each at
And, despite the fact that the debut cast of Real Housewives of New Jersey included Teresa Giudice when it aired on May 12, 2009, Teresa Giudice was listed as "unemployed" in her October 29, 2009, bankruptcy petition. She did, however, list $3,333 per month as "supplemental income" from Bravo on a separate schedule. And while she likely would have just inked a contract for the second season of Real Housewives, which was announced by Bravo on October 6, 2009, Teresa did not indicate the potential for future income on the bankruptcy petition. Those fact, according to the indictment, indicate that the Giudices intentionally concealed Teresa's actual income from Bravo, as well as related income from website sales, and personal and magazine appearances in order to support the claim for bankruptcy. The bankruptcy petition was signed under penalty of perjury and the Giudices are now charged with concealing and making false oaths and declarations in the bankruptcy case.
The indictment also alleges that Giuseppe Giudice received income from his business during the tax years 2004 through 2008 but did not file federal income tax returns for those years. Giudice reportedly received income totaling $996,459 during that time. He is charged with five separate counts of tax evasion as a result.
The Giudices have maintained their innocence, with Teresa releasing the following statement to New Jersey's Star-Ledger:
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.
The Giudices have indicated through their attorney their intentions to plead not guilty to the charges.
If the case goes to trial and they are found guilty, the couple could face up to 20 years in prison and a $250,000 fine for conspiracy to commit mail and wire fraud as well as up to 30 years in prison and a $1 million fine for bank fraud and loan application fraud. On each count of bankruptcy fraud, the pair faces a maximum penalty of five years in prison and a $250,000 fine. And for Giuseppe, each count of failing to file a tax return carries up to one year in prison and a $100,000 fine.
These, of course, are federal charges. They are in addition to New Jersey state charges already pending against Giuseppe Giudice. He faces up to 10 years on charges of fraudulently obtaining a New Jersey driver's license; Giudice allegedly used his brother's identification to get the license after his own was suspended due to a DUI.
U.S. Attorney Fishman said, about the federal charges, "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."
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