In our latest article from star blogger and Real Housewives expert LynnNChicago, we get the facts on Teresa and Joe Giudice’s legal situation and whether the couple are looking at jail time for bankruptcy fraud.
“On last weeks episode of the Real Housewives of New Jersey, Joe and Teresa Giudice met with their attorney to discuss the outcome of one of the legal battles that they face. Joe’s former partner sued Joe Giudice for forging his signature, Joe admitted he signed the document and lost the case resulting in a money judgment against Joe. Regardless of the bankruptcy, Joe will still be held accountable. That is only the beginning.
October 2009 – DLJ Mortgage Capital Inc filed papers with the Superior Court of New Jersey to repossess the house that Teresa owns with her husband Joe.
October 2009 – Joe’s partner won a judgment against Joe for forgery, Joe admitted to the courts that he signed his partner’s signature on loan documents.
Then just days later…
October 2009 – The Giudice’s filed for Chapter 7 Bankruptcy relief asking the courts to discharge all of their debt: the couple lists $11.8 million in debts. That includes $5.8 million on various business investments made by Joe, $2.6 million in mortgages on three homes, and $12,000 owed to a fertility clinic. The couple also list $104, 000 in credit card bills, including $20,000 to top-tier department stores like Neiman Marcus and Nordstrom, and $2,300 to the phone company.
January 2010 – Police arrested Joe in connection with charges of driving while intoxicated, reckless driving, careless driving, and failure to maintain a traffic lane. Following his arrest, Montville police relinquished custody of Joe to police in Clifton, New Jersey, where he had warrants out for his arrest in connection with past city ordinance violations. In March, he was fined $864, had his license revoked for 12 months, and was sentenced to 30 days of community service.
August 2010 – Joe appeals the sentence on his January DWI case. His appeal resulted in a cut out of the 30 days community service or jail time altogether. The judge reduced the license loss to seven months, slashed the fine to $300, and told Joe to complete 12 hours at the IDRC. The judge said to Joe, “Certainly you’re not a Boy Scout but I don’t think you’re John Dillinger either.”
September 2010 – Joe was sentenced to 10 days in jail for driving with a suspended license.
September 2010 – The Trustee in the Giudice’s bankruptcy case filed a petition in the courts to deny Joe and Teresa’s request for Bankruptcy protection due to the Giudice’s failure to include all of their assets in their original filing. In essence, Joe and Teresa are being accused of hiding assets so that they wouldn’t lose them in the Bankruptcy and so that they would be able to keep some of their properties and much of the cash on hand yet still qualify for to have their debt discharged.
The 19-page list of the Giudice’s failure to disclose all of the true and proper information can be found here:
Among other things the Giudice’s are accused of failure to disclose all of their rental properties, business income, Teresa’s book advance and claiming to have filed their income taxes when according to the IRS, they hadn’t actually filed the income tax documents that they included in their petition. The IRS is reportedly investigating this couple.
January 2011 – Teresa and Joe film Bravo’s Real Housewives of New Jersey – a meeting with their attorney who explains that while Teresa Giudice is clear of any responsibility for the judgment obtained by Joe’s partner in October 2009, Joe continues to be responsible for paying back those funds.
March 2011 – Joe walks into the local DMV to obtain a driver’s license. He has a birth certificate and a marriage certificate, he was arrested six hours later. The problem? The birth certificate and marriage certificate were reportedly his brother’s. Joe is charged with Wrongfully Using Identifying Information of Another, a violation of NJSA2C:21-17.2, a crime of the second degree, which is punishable by up to ten years in State prison, and Forgery. Bail was set at $50,000.
June 2011 – Teresa, Joe and other cast members of the Real Housewives of New Jersey are being sued for allegedly attacking two men at a Dominican resort. The incident allegedly started when Teresa opened a bottle of champagne and sprayed it onto Arreola and his family. A fight broke out causing injuries to the two Chicago men and resulting in a lawsuit against Teresa, Joe and their cast mates.
Both Teresa and Joe face jail time for allegedly lying to the Bankruptcy courts and their claim that they filed income taxes when they didn’t. Additionally Joe faces possible jail time for the alleged stunt at the DMV. There is a very real chance that the bankruptcy courts will deny their request to discharge their debt which will put all of their debt back in their hands and will most likely cause the foreclosure on their home to move forward. The battle in in the Dominican is a civil case and can only cost them money as no criminal charges were filed.
The courts will hear Teresa and Joe’s bankruptcy case in December. Watch What Happens!”