More news to report in the Teresa Giudice bankruptcy saga.
Somehow this news has managed to slip through the cracks, but two days after the Ibuysss blog first broke the story, Reality Tea has uncovered some documents showing that on September 24, 2010, New Jersey Judge Morris Stern ruled that Real Housewives of New Jersey star Teresa and her husband Joe Giudice are required to stand trial on July 14 & 15, 2011 for charges relating to bankruptcy fraud.
The Giudices had tried to get the bankruptcy fraud allegations dismissed. If you recall, Teresa and Joe filed bankruptcy back in October 2009 to the tune of $11 million in debt. Things were working according to plan for the Giudices as Teresa even went on a $60,000 shopping spree just days after filing Chapter 7.
The problems arose however when on 06/30/2010, John W. Sywilok, the Chapter 7 Trustee assigned to oversee the Giudices bankruptcy filing, alleged they had commited bankruptcy fraud by concealing assets and income from their filing. The accusations include -
- Failure to report $250,000 (an advance Teresa received from a publishing deal for her book)
- Failure to report Joe’s ownership/interest in a Pizza shop
- Failure to report a $3,333.33 monthly income
- Concealing assets including a bank account of Joe’s, two pieces of real property, vehicles, the ownership of an online boutique called TG Fabulicious
- Presenting false income tax returns to the bankruptcy court
From looking at the court documents, tt seems the July, 2011 court date is simply to get a judge to dismiss the Giudices’ Chapter 7 bankruptcy petition because of fraud. If the trustee does suceed in getting the bankruptcy dismissed, the Giudices would then be responsible for their $11 million debt.
We’re no legal experts here at Reality Tea but it is likely criminal charges for lying under oath, IRS fraud, etc will follow if the Giudices are found guilty of commiting bankruptcy fraud as it appears the July 2011 hearing is solely focusing on getting their bankruptcy dismissed, and not so much on the criminal aspect of the serious allegations.
TELL US – WHAT ARE YOUR THOUGHTS ON THE LATEST DEVELOPMENTS? IF THE GIUDICES DID LIE IN THEIR FILING, DO THEY DESERVE TO GO TO JAIL?