During their bankruptcy proceedings (which led to their federal indictment and imprisonment) Teresa and Joe were allowed to retain possession of the home because they owed more than it was worth. Unfortunately with all their other financial issues the couple couldn’t make the mortgage payments of $10,679 per month and as of December 2014, lapsed into foreclosure. Again.
With their house in foreclosure, Teresa and Joe have been trying to sell at $2.99 million with no takers. Apparently no one wants to live in the fraudulently gilded remains of failed delusions of grandeur. Last week the indebted Real Housewives Of New Jersey couple attempted to contest the bank’s foreclosure proceedings, but had their request denied.
Despite a court report stipulating that federal prosecutors were lawfully allowed to seize Teresa Giudice‘s assets to satisfy her restitution debts, Teresa’s out-spoken attorney James L. Leonard Jr. denies that’s that the case!
Teresa relinquished her 2005 Maserati (why she still had that when she was $13 million in debt is a complete mystery!) along with a portion of her RHONJ paychecks to satisfy her restitution debts to the feds.
On Friday, federal prosecutors obtained the rights to seize the Giudice’s property or cash in order to satisfy their outstanding restitution debts. Teresa owes the federal government $414,588 as part of her sentence for mortgage and bankruptcy fraud.
UPDATE: This has been confirmed as a FALSE REPORT. Vicky Hyman of NJ.com writes, “Matt Reilly, the U.S. Attorney’s Office spokesman, says his office is continuing to work with the couple to schedule repayment, and has not ordered any such seizure. ‘Anyone went over there under official capacity, it would be under us.'”
The denials continue to pour in regarding an alleged raid on the home of Teresaand Joe Giudice. See the links below. The Sheriff’s office, the US Attorney’s office, Teresa’s lawyer, Joe’s lawyer and more have all firmly stated that no such occurrence took place and say the stories are 100% fabricated.
Teresa claims that her bankruptcy lawyer flubbed their paperwork and failed to disclose things on the documentation. In the suit Teresa says that it was his failure to include important things like rental income, other bank accounts, etc and that’s the reason the investigation got triggered.
Well I know what I’ll be doing tomorrow night! Bravo seems to be cashing in on everything Giudice now that the stars of Real Housewives of New Jersey are heading to the clink. I have to admit, I am still a bit of shock to think of Teresa Giudice serving actual time. Something tells me that Juicy Joe wasn’t surprised to hear his sentence. I feel like he’s been dodging the law for so long, it has to be a bit of relief to get to stop running.
Of course, the Giudices (and the network that introduced them to the world) want to proactively handle the insane publicity that is sure to intensify as we countdown to Tre’s lock-up. Andy Cohen is no dummy. He’s going to milk this for all it’s worth, and he’s already teasing the Giudices’ Monday appearance in the clubhouse on the heels of Teresa canceling her public appearances.
Yesterday Teresa Giudice was sentenced to 15 months in prison, while her husband Joe Giudice received a 41 month sentence for federal fraud charges of bankruptcy fraud, mail fraud, and conspiracy to commit wire fraud. The Judge decided to give the couple staggered sentences allowing one of them to always be at home with their 4 daughters.
Teresa will begin serving her sentence first, on January 5th, 2015, so she will be able to spend the holidays with her daughters. Teresa and Joe owe $414,588 in restitution as a couple and each face two-years of supervised release following prison.
Happy Sentencing Day! Before receiving their federal fraud sentence, Teresa Giudice and Joe Giudice settled their bankruptcy – finally. But unfortunately the news is not good, the judge denied the bankruptcy discharge which mean the case is closed now, and it’s as if the couple never filed for for bankruptcy at all and must repay their debts the old-fashioned way!