The federal government alleges that the Real Housewives of New Jersey stars intentionally withheld and falsified financial information in order to obtain mortgages they could not afford then they failed to honestly report earned income to the IRS. Then upon filing bankruptcy they lied about income, assets, and potential income. All in all they are in biiiiig trouble, little Jersey!
It's interesting that despite Teresa being a stay-at-home wife and mother during that time she signed and submitted loan applications claiming she had income and a job.
Another interesting fact: Teresa and Joe have SEPARATE attorneys in the matter. Which is uncommon considering they are a married couple who filed Chapter 7 together and Joe was presumably the sole breadwinner during the timeframe.
The Real Housewives of New Jersey stars were officially charged this afternoon with a 39-count indictment of "allegedly conspiring to defraud lenders and illegally obtain mortgages, federal authorities said this afternoon," reports North Jersey.com. In addition they are accused of hiding assets and income during their bankruptcy case.
Teresa, who according to witnesses, displayed a subdued attitude, continued to stand by her husband who is accused of the bulk of the issues. “Today is a most difficult day for our family," Teresa told the judge. "I support Joe and, as a wonderful husband and father, I know he wants only the best for our lovely daughters and me."
If you recall, Teresa and husband Joe Giudice shocked viewers back in 2010 when it was revealed that they filed bankruptcy to the tune of $11 million in debt. Shortly afterwards, the two were accused of bankruptcy fraud by their trustee John Sywilok, who accused them of concealing assets and hiding income. By the way, concealing assets just happens to be a federal crime.
In a move to likely avoid persecution, Joe first withdrew his bankruptcy bid back in September, after pleading the fifth amendment during questioning by the trustee.
Following Joe’s move the Giudices’ lawyer told PEOPLE magazine that Teresa would soon follow, stating she felt “vindicated” to be voluntarily paying her remaining debts rather than go to jail have them discharged in bankruptcy court.
The NJ Star-Ledger is reporting that in addition to withdrawing her bankruptcy, Teresa has also settled the lawsuit by the trustee by acknowledging that she wishes to resolve Sywilok’s proceedings against her “without the need for further inquiry or litigation, and without her making any further admissions.”
Teresa’s attorney Jim Kridel stated back in September that Teresa was now making enough money to pay off her debts, while also adding that most of the debt in the bankruptcy belonged to Joe. Safe to say the system won this go around.
In other RHONJ news, Tre’s sister-in-law Melissa Gorga recently revealed she is now selling T-shirts with some of her catch phrases written on them such as “Thank you Jesus” and “On Display.”
“We are selling a lot of “Thank you Jesus!” shirts of my website this week! Guess its for Christmas gifts! Send pics! Xo, melissagorga.co” tweeted Melissa last week. Pictures of those T-shirts are below!
TELL US – THOUGHTS ON TERESA WITHDRAWING HER BANKRUPTCY BID? WOULD YOU BUY ONE OF MELISSA’S T-SHIRTS?
Well, I’m excited to finally report some positive news concerning Teresa Giudice’s finances!
As you recall, on Monday the Real Housewives of New Jersey star’s husband, Joe Giudicewithdrew his bankruptcy filing after controversy over allegations the Giudices had lied about their assets and income at the time of filing. Joe was at risk of facing criminal prosecution related to bankruptcy fraud. Teresa still potentially faces those charges, as she has yet to withdraw her filing, although sources report she is planning to.
Now, onto the positive! In a new interview for PEOPLE, Teresa’s attorney Jim Kridel reports “Teresa and Joe are happy about this,” and Teresa feels ” ‘vindicated’ to be voluntarily paying her remaining debts rather than have them discharged in bankruptcy court. (They will move to settle the case later this week.).” Wait – what?! Did I read that correctly?! Why, yes, yes I did.
Mr Kridel continues “Teresa has always wanted to be able to say that she paid her creditors.” The Giudices however had a hard time doing that as they owed a seemingly insurmountable amount of money related to multiple mortgages on several inner city apartment buildings, bills for building materials, and the balances on their various credit cards which accumulated to about $11M in debt according to their bankruptcy filing.
“Almost all the debt in the bankruptcy was Joe’s debt,” Kridel claims. Apparently, the smaller debts and credit card bills, which totaled around $100,000, were attributed to Teresa, and her lavish spending and out of control need for anything covered in glitter, lace, or marble, who “wanted to pay,” however once the Giudices filed bankruptcy their creditors were not allowed to be paid “preferentially.”
The article explains that as of now several of the banks have been repaid from the sale of the apartment buildings listed as a liability in their bankruptcy filing and Joe has also paid the $586,000 claim against him from his former business partner through a building’s sale; leaving the Giudice’s remaining debts “within a manageable range.”
With her many business ventures (including a make-up line and bottled cocktail) Teresa is no longer completely broke. Teresa “may not be able to pay all [her creditors] with one check, but she can pay them back. She wants to do the right thing,” her lawyer articulates. No word if Joe is currently employed, but at least his wife is bringing home the bacon and attempting to spend it wisely!
According to Kridel, who gave this interview with dollar signs in his eyes, “The cost of litigation might exceed what she owes.” Well, hopefully they won’t default on that bill…
Do you believe Teresa that she wants to repay her debts? Are you as shocked as I am that she supposedly wants to do the right thing? If Teresa does, in fact, repay her creditors the old-fashioned way would this give you a more positive opinion of her?
Exactly two years after filing bankruptcy in 2009, to the tune of $11 million in debt, Joe Giudicewithdrew his bankruptcy filing on Monday in a New Jersey court.
The NJ Star-Ledger was the first to break the shocking news regarding the Real Housewives of New Jerseystar. So why did Joe abandon his bankruptcy bid? Well it all has to do with the accusations levied against him and his wife Teresa Giudiceby their bankruptcy trustee John Sywilok.
About a year after they initially filed, the trustee accused them of hiding assets, and concealing income amongst other things. The Giudices were accused of concealing assets including three vehicles, a boat, properties in Hillside, the family pizzeria, a laundromat and apartments. Teresa was also accused of hiding income including a $250,000 advance she received for her bestselling book “Skinny Italian.”
While in court, Joe abandoned his quest to have his millions of dollars in debts forgiven in federal bankruptcy court. The Ledger reports the change of heart came after he invoked his Fifth Amendment rights against self-incrimination during questioning by the trustee for his creditors about assets, income and business interests he is accused of hiding from the court.
The judge signed off on the settlement between Joe and the trustee. The court order reads, “The defendant Giuseppe Giudice acknowledges his desire to resolve the matter without the need for further inquiry or litigation, and without making any further admissions.”
However, the agreement signed by Joe does not apply to Teresa. Though it’s likely Teresa, who has been raking in the dough since filing bankruptcy, will end up dong the same.
So why did Joe make this decision? More than likely to avoid future criminal prosecution. Joe and Teresa were scheduled to face trial over the bankruptcy fraud leveled against them. If they had been found to be in the wrong during that trial, the next steps would have been a criminal case.
“They are really cracking down on bankruptcy fraud,” said bankruptcy lawyer Leonard C. Walczyk. “It is a real hot issue.”
So to sum this up, Joe is now responsible for millions of dollars of debt while Teresa’s bankruptcy case is still working its way through the court system. The trustee is still opposing her discharge of debt. A bankruptcy lawyer reveals Joe would still be responsible for their joint debts even if a judge absolves Teresa’s liability.
As stated, it’s likely Teresa will end up following in Joe’s footsteps, you know, if she wants to avoid criminal prosecution and/or prison.
Photo credit: Steven White / Splash News
TELL US – THOUGHTS ON THE LATEST? SURPRISED BY THIS MOVE BY JOE?
In last nights installment of Real Housewives of New Jersey it’s another round of the feud that never ends (it just goes on and on, my friends), as Teresa and Melissa engage in sister-in-lawemy behavior with behind the back comments and to the face fracas. Kathy hosts a goddess get-together to debut her catering ideas, but Teresa decides that she is the only goddess there, so the party becomes allll about her! Jacqueline and Ashley argue, and argue, and argue some more until Chris reaches his breaking point! Oh, and no Joe G-to-the-orga this episode – so happy days!
Things pick up where Hat-ley and Jacqueline left off last week. In an extremely emotional scene, Jacqueline is sobbing in the basement of the restaurant while Chris tries to console her. Jacqueline asks the questions millions of viewers have been screaming at the TV for 2.5 seasons: Why are they letting Ashley have free room and board when she treats us like crap? Exaaaactly, Lauritas, exaaaactly!
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And as expected, this all has to do with her ongoing bankruptcy legal drama. See back in 2009, Teresa and hubby Joe Giudice filed bankruptcy to the tune of over $11 million in debt. However, almost a year later, their bankruptcy trustees alleged that Teresa knowingly withheld assets, including a $250,000 advance for her best-seller Skinny Italian and a business bank account.
An offense lawyers reveal could easily land her in prison for six months to a year. In fact, in unusual Teresa fashion, she actually spoke to the mag about the bankruptcy case. “I wish I could make this all go away,” admitted a clearly shaken Teresa, who insists any omissions were accidental, “but all I can do is take this one day at a time.”
Legal experts however add that Teresa, 39, is living on borrowed time. She and Joe were originally due to appear in court to face allegations of bankruptcy fraud on July 14, but the proceedings have now been postponed, giving her extra time before she faces the possibility of being torn from her daughters.
And unfortunately for Teresa, an attorney say it’s her own fault, even if she didn’t intend to commit a crime. “Teresa had her book contract a week before bankruptcy papers were filed but waited until a month after to sign it.” notes New Jersey lawyer Eric Lubin, who isn’t involved with the case.
“It seems as though she was avoiding signing the contract so that the money would come to her after the bankruptcy petition was filed. How could anyone forget that they have $250,000 coming to them?” In bankruptcy, everything a debtor owns before filing goes toward paying off debts. Anything earned after filing, the debtor can keep.
Meanwhile, bankruptcy trustees have also raised questions about $100,000 in deposits associated with Teresa’s online boutique, TGFabulicious.com. Because of that, Teresa “could be looking at life-altering consequences here,” cautions James Leonard, another New Jersey lawyer.
As for Teresa, she continues to keep her head up high while the legal drama looms on. “I’ve worked hard to brand myself,” she tells Life & Style. “I have no fears… Hopefully everything is going to be good,” adds Teresa.
Photo credit: WENN
TELL US – THOUGHTS ON THIS REPORT? DO YOU THINK TERESA KNOWINGLY WITHHELD ASSETS OR WAS IT AN INNOCENT MISTAKE?
Almost 2 years after filing bankruptcy to the tune of $11 million in debt, Teresa is facing the possibility that her bankruptcy filing could be overturned. Why? She is facing trial for bankruptcy fraud alongside her husband Joe Giudice.
If you recall, we reported last year that the Giudices were scheduled to go on trial July 14th. However the Giudices were able to get that date postponed last month. While New Jersey Judge Morris Stern refused to dismiss the trial, he did postpone it to October 13th… just in time for the filming of the RHONJ season 4.
The Giudices’ trustee John W. Sywilok is accusing them of concealing assets and hiding income on their bankruptcy filing. You can read all about that by clicking here. The goal of the trustee is to get the bankruptcy granted to them dismissed so that they will be responsible for all their debt. In addition to that, Teresa and Joe also have another trial scheduled for January 2012. It appears plaintiffs in that case are trying to get a judge to exclude a mortgage debt related to Joe’s dealings with his former business partner Joe Mastropole, excluded from their bankruptcy.
In other NJ news, Teresa’s sister-in-law Melissa Gorga spoke about their feud in a new interview. Melissa, 31, reveals she is willing to let bygones be bygones when it comes to her relationship, or lack thereof, with Tre. Melissa also insinuates that Teresa was only willing to make up with her because of the Bravo cameras.
“There’s definitely times where I hear her point,” Melissa told the L.A. Times “But it’s been frustrating for me because I’ve been asking her for years and years and years to fix it, to work it out with me. All of a sudden, within the last year, she was doing all the right things and saying the right things. But better now than never, I guess. I’ve been trying to get her to act this way for years. I guess I was confused: ‘Why now?’ But whatever. We’re family. I’m always willing to forgive.”
So how is their relationship today? “Right now, she’s my sister-in-law,” Melissa said. “We have kids the same age — we try, we try to work it out. And we try to be together for the family. It’s not like we’re best friends, but we’re family. I want my husband to have a relationship with his family.”