Updating a story we brought you last year, two stars of the Real Housewives of New Jersey could be sentenced to 30 years in prison after they were charged with conspiracy to commit mail and wire fraud, bank fraud, making false statements on loan applications and bankruptcy fraud.
Teresa Giudice, and her husband Joe, filed Chapter 7 bankruptcy in 2010, citing $11 million in debt. According to multiple news outlets, the trustee handling their case accused the Giudices of fraudulently concealing assets. Because of the alleged dishonesty, the couple withdrew their bankruptcy petition, while Joe invoked his Fifth Amendment rights in court.
Last month, the couple were arrested and charged in a 39-count indictment relating to their case. Last week, both were released from custody on $500,000 bond each amid the charges. According to Fox News, authorities say the couple submitted fraudulent mortgage and loan applications from 2001 to 2008, including fake tax returns and W-2s. Prosecutors allege Joe Giudice failed to file tax returns for the years 2004 through 2008, according to Fox News.
Fox News also reported that prosecutors said the “Giudices received about $4.6 million in mortgages, withdrawals from home equity lines of credit and construction loans.”
Whether you are filing Chapter 7 or Chapter 13, not disclosing your assets is a punishable, as you can face fraud charges. Creditors and trustees can detect dishonest information that may be included in a filing, as most assets and loans have documentation, so it is advisable to be honest when filing for bankruptcy.
Talk to an attorney about your plans. If you have issues with mounting debt, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.
Law Firm of Kevin D. Judd
Judd’s Judgment: Bankruptcy allows you rebuild financially, making it easier to repay debts that cannot be eliminated over time.