It seems Teresa Giudice isn’t the only Real Housewife of New Jersey star facing major financial troubles! A new report states that Twitterholic, Jacqueline Laurita and her husband Chris Laurita were recently named in an $8M lawsuit for “improperly using funds and assets” from their company Signature Apparel.
RadarOnline is reporting that Chris and his brother Joseph formed Signature Apparel Group (a company that once owned brands such as Rocawear and Eve’s Fetish) in 2005 and “drained the company” amassing a debt of $7,804,227 which was used to “support their luxurious lifestyle”!
According to documents the company banked more than $250 million between 2005 and 2009, but then surprisingly declared bankruptcy in September 2009, and just like their friend Teresa, someone started complaining that the bankruptcy petition might just be fraudulent. The suspicious bankruptcy filing prompted the debtor “to come forward with the complaint”, claiming company monies were “misused,” RadarOnline reveals.
Chris and Joseph “drained the Company of all its funds and assets in order to support their families’ increasingly opulent lifestyle of private jets, limousines, extravagant parties, premium automobiles, designer clothing, ostentatious home furnishings and lavish vacations,” the complaint filed November 2, 2010 alleges. “Signature’s assets were misused to make outright and unjustified payments to Laurita family members, and to fund the operations of the Laurita brothers’ other companies and business ventures.”
So what exactly did the Lauritas spend all that money on? Well, according to the documents, here’s the breakdown:
- Nearly $2 million in credit card payments for the Laurity Family, including payments to more than 40 bank accounts
- At least $331,637 for payments on no less than eleven leased cars, including a Bentley and a Maserati
- At least $284,793 in airline travel expenses for the Laurita Family
- At least $145,894 for private airplane rentals for the Laurita Family
- At least $7,280 for travel agent expenses for the Laurita Family
- At least $755,184 to defendant Christopher Laurita for undocumented or insufficiently documented reasons
- At least $784,160 of disbursements directed by the Laurita Director Defendants (Chris and Joseph) to unknown recipients, without any documentation whatsoever
Even worse, the complaint alleges that Jacqueline had knowledge that shady business dealings were taking place and willing participated in wrongfully accepting money from the company, which is why she is named as part of the suit! The documents claim Jacqueline, along with Anthony Laurita, “knew of the Laurita Director Defendant’s wrongful conduct, and each substantially assisted the Laurita Director Defendants in breaching their fiduciary duties by, among other conduct, accepting funds they each knew belonged to Signature and for which they each knew they had performed no services and/or provided no value.”
“Funds that should have been used to grow Signature’s business and to pay Signature’s vendors and creditors, instead were diverted to the Laurita Family Defendants.” Oops – that’s not good.
Chris has denied “nearly all of the 155 allegations made in the claim” and believes it should be summarily dismissed, citing: “a failure to state facts sufficient to constitute a cause of action and a failure to state a claim upon which relief may be granted.” The case is still pending so Reality Tea keep you posted with all the updates! Jacqueline has yet to comment, but if Bravo had wind of this matter it may have been another reason she skipped the RHONJ Season 3 Reunion!
In my limited knowledge of bankruptcy law, this is what I understand to have happened: it seems that instead of paying creditors to keep the business lucrative the Lauritas allegedly pocketed the proceeds and spent the money for personal use, then filed bankruptcy to avoid paying their bills. Now they are being accused of fraudulently filing bankruptcy. Any legal or financial experts out there please chime in!
In other news, when it flurries it becomes a Norwegian! Just a few days ago it was reported that Jacqueline was indeed a stripper before marrying Chris and Jacqueline is still adamantly denying it! You know the old expression “the lady doth protest too much…”
Jacqueline took to her personal website to clear up any lingering suspicions about how she met Chris and is sticking to the story that they met while she was a convention model. She also posted yet another Tweet denying she was a stripper and accusing someone (ahem…Teresa) of leaking false stories: “Im being 100% honest w/everyone w/my story of how Chris&I met in Chicago. I WAS NOT A STRIPPER/PROSTITUTE as said by shady people 4 money”
I, for one, can’t wait to hear what sister in law from hell, Caroline Manzo has to say about the latest!
[Photo credit: Sylvain Gaboury / PR Photos]
THOUGHTS ON THE LAURITA’S FINANCIAL SITUATION? DO YOU BELIEVE THEY ARE INNOCENT OF ANY WRONG DOING? ARE YOU SURPRISED BY WHAT THE ARTICLE IS ALLEGING? DOES THE RECENT INFORMATION CHANGE YOUR OPINION OF JACQUELINE?
Exclusive: Reasons For Caroline Manzo & Teresa Giudice Feud Revealed! Plus What Did Teresa Say About Christopher Manzo?
Real Housewives of New Jersey fans will finally get to see Teresa Giudice and Caroline Manzo butt heads on tonight’s season 3 finale which was taped this Spring.
On the finale, Caroline will discover the
dissnot so kind words Teresa wrote about her in the Fabulicious cookbook. As we reported last week, Caroline as well as Jacqueline Laurita are no longer on speaking terms with Teresa, and we can now bring you the exact reasons!While things reached a boiling point during the Posche Fashion Show two weeks ago when Teresa reportedly plotted to expose Melissa Gorga as a past stripper, a RHONJ insider tells us Caroline and Jacqueline had stopped talking to Teresa before that event.
The reason? The two have had it with her after seeing her true colors. “They have seen the real Teresa through this last season with Melissa. Melissa is very close with Jacqueline and Caroline,” reveals the insider.
CLICK HERE TO SEE PHOTOS FROM THE POSCHE FASHION SHOW!
While Joe Gorga’s screaming match with Kim D. at the Posche fashion show has been widely reported, our insider adds that Jacqueline and Teresa also got into a big fight that night. In fact the two former BFFs will be seen getting into A LOT of fights on the upcoming 4th season which is still filming at the moment.
Another reason for the tension between Caroline/Jacqueline and Teresa also has to do with Teresa’s many business ventures. Apparently, Teresa has been stepping on Jacqueline and Caroline’s toes by entering into businesses she knew they were planning to do.
“Teresa knew what Jacqueline and Caroline were working on as far as business deals and Teresa went behind their backs and copied what they were doing…. in other words she stole their ideas to make money,” said the insider. Yikes!
Our source adds that Caroline and Jacqueline are absolutely done with Teresa! “Jacqueline and Caroline think Teresa is a liar, vindictive, and so into the fame that she doesn’t care about anything anymore. Teresa will sabotage anyone to remain relevant.”
And while Melissa Gorga and Kathy Wakile have been diplomatic with their recent public comments about Teresa, our NJ insider reveals that she continues to remain friendless as none of her RHONJ cast members attended the party to launch her Fabellini wine on Friday night.
“None of the other women, their husbands, or children were in attendance. Not one cast member was present. She has burned every bridge she had,” says the insider. “Dina Manzo was there for less than an hour. None of Teresa’s “friends” were there. It was all family and the Bravo crew.”
Also in attendance was Teresa’s brother-in-law Pete Giudice and his wife Sheila Giudice. It has been rumored that Bravo is considering bringing Sheila on for season five.
Our insider adds that Sheila, who isn’t a fan of Teresa’s, is desperate to be on the show and has now switched her alliance from Team Melissa to Team Teresa! With the reports of Caroline and Jacqueline leaving the show after season 4, it will be interesting to see if Bravo decides to bring Sheila on.
Moving on to tonight’s finale/the 19th episode this season, below is a preview clip –
Watch What Happens Live – The guests tonight are Melissa Gorga and Jay Mohr! Shoould be a good one!
Photos credit: Dave Kotinsky/Davekotinsky.com
TELL US – THOUGHTS ON THE REASONS CAROLINE & JACQUELINE ARE NO LONGER TALKING TO TERESA? THOUGHTS ON TONIGHT’S FINALE?
UPDATE – As seen in the above preview clip, Caroline is not only ticked at what Teresa wrote about her in the cookbook but at also what Teresa wrote about her son Christopher Manzo. Below is what Teresa said about Chris via two excerpts from her cookbook -
“This is a family cookbook! Unlike some of the other “Housewives,” I do not condone young girls stripping to bring in business to a car wash, old ladies in hot pants climbing up on a pole to bring their sexy back, or videotaping yourself in any state of undress at any time. “
“That’s how it is with us Italians… We spoil our kids rotten, so much that they never want to leave home. Albie and Christopher Manzo are adorable, but don’t let them fool you. Their “L” in “GTL” (Gym-Tanning-Laundry) is “Leave it for Mom.” That’s just how it is, and how we moms like it.”