EXCLUSIVE: Are Teresa and Joe Giudice Going to Jail For Bankruptcy Fraud?

Posted on August 27th, 2011 at 9:44 am
Exclusive

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!”

- LynnNChicago

Around The Web
    • Kats2

      So on top of both being criminals they are also a really classless ugly couple.  Perfect for each other.  

    • mary poppins

      Old news

      • Frankie

        You’re right, the Guidice’s legal woes have been reported on before, but I’ve never seen everything put together and seen the actual documents before- it also hasn’t been shown on the RHONJ before- so I think it’s appropriate that’s it’s being written about now.

        • lessinvestedviewer

          It is interesting, but since it said exclusive, I thought there would be new or “exclusive” info. I do feel a little sorry for Teresa, she found out her whole life was a lie. I can see that she is constantly in a defensive position, trying to hold onto what is already gone. She is showing every single symptom of atypical depression.

        • Puffer Lip some more

          Good for Lynn to pull the info together but it’s a rudimentary outline. 

          All of these details and more have been discussed in exacting detail on many housewife websites and forums.

          Because a reader has never seen the linked document prior to today may indicate a lack of real interest in the subject at hand.

    • Bess

      I guess Joe’s being solely responsible for the money he stole involving his partner is the reason we see him sitting on his ass, not working.

    • Incahooots4

      Great artical.  They don’t even realize that they have done wrong. They don’t care either.  They’re bums.

    • Designdiva

      and now barney is feigning depression on the show…hahahahaha…..thinks it will work in his favor at sentencing….and Tre knew everything that was going on….she’s not clueless by any stretch of the imagination….She is his partner in cime….ALL THE WAY…..
      I certainly hope they get the MAX the law will allow…… Grifters and shysters……
      I have a gift for Barney…..a case of soap on the rope……
      diva

      • lessinvestedviewer

        I do not believe she knew all the way, Jacqueline said she didnt. She has handled it poorly and she has clearly lost her way. She is reactimg out of fear and is humiliated. She is lashing out…all of that is true, but she was not in it from the beginning. I think she is scared and being a jerk, Joe…however, is a whole different animal.
        I predict that we will find out Rich and Kathy are overextended, too.

        • Murrayvee

          Agree! on point.

      • Puffer Lip some more

        To jest and have a lack of concern and lightly comment about him.  He’s showing real signs of depression.  He looks like he’s drinking too much alcohol and verbal lashing out even at his children and his physical lunges to other adults are all signs of a man who needs help.  Shame that he’s not helped but joked at including sexual rape joke the soap on a rope comment.  Calling that Joe gets the HELP he needs and something stupid doesn’t happen.

      • Ont147

        agreed, though it will be one very special inmate (no pun intnded) that puts it in Little Jo G. The trouble with your country is that you have all of these money brokers who will take their commision on little more than a heartbeat and a forged signature. It doesnt work that way in Canada, and that is why we all still have jobs and houses and healthcare. In your country you let people screw themselves as large as they want to and everyone who sweeps up after them gets all the actual money (the equity) the group from chicago, they probably need that money because someone is suing them and so on and so on. And you all blame Obama. 

      • Tbarrette28

        damn right, who do they think they are????  I don’t understand why they are still living this life style with their vacations and shopping???  What the hell is going on, if it were me my ass would be in jail and that is exactly where they should be!!!!!!!!

    • Fhasdhl

      How is this a rumor Fix? We all knew this AGAIN.

    • Rachel

      yamn.

    • Ashlee

      All of this information is like a year old.  Some of it more.  It’s all been printed in magazines or online.  Those links have been up for months.  Why is this woman a “famous blogger” again?

      • DaddyO

        Um Ashlee? If you don’t like the blogger, why read it?

        She was summing up all the illegal activity that they have been accused of over the years,You know, it’s called a summary. Duh!

    • cindermaggi

      lmaooo

    • Fair Warning

      It has always been obvious that these two were overextended and now it appears they had to resort to crime to try to maintain. Whether Teresa knew or not will not matter to the legal system. They never buy the ignorance excuse.

      That said, I feel badly for that family. The children are obviously overindulged and poorly disciplined, but that is the fault of the “adults”.

      As I watch them, I always wonder who of these other obviously overspending clowns is right behind them?

      • Momc

        I think it is time that people pay the price of overspending. Why should they be excused for their irresponsibility? They should also be removed from the show. Supposedly the whole point of “Housewives” is to feature well-to-do families, not posers. Maybe they should just do away with the whole series, period. The only true wealthy would be the Beverly Hills cast. I, for one, have stopped watching the HONJ, because it has become of show about Teresa and Joe’s family.

    • Tiffanyjones

      If you don’t want to air your dirty laundry, don’t appear on a reality show. It could very well kill you.

      Another reason for us to wake up and be wise with what we “need” and not “want”. How sad it is that people must show off and pretend to be something they’re not. Damn shame.

      And poor Russell is dead because of it.

    • JJ

      Interesting article. I didnt know that they could possibly lose their home again because of foreclosure. I thought they were in the clear after filing chapter 11. I hope they do lose their home because its not fair for the hard working people who earn an honest living and then there is people like this who earn 79,000 dollars a year and live like they earn 790,000.

    • Sara

      It doesn’t make sense to me that these two are displaying their extravagant lifestyle and questionable business practices on television, and then are hoping that the court will be impartial about their situation when they go into bankruptcy court in December.  I don’t expect that bankruptcy ruling to go in their favor.

    • lynnlies

      Another stunning story from the star blogger, old info taken from other bloggers… do they pay this woman?

    • Meggan

      Why do people watch these lunatics? Is it because it makes us all feel more sane? These wealthy housewives along with their husbands are totally out of control. All we do by watching these types of nonsensical programs is encourage Bravo and other networks to feed us more and more trash.

    • Meggan
    • aword

      This is what wrong with are system. People like this can walk away from their responsibilities and still be on TV making 400,000 a year + whatever they make in personal appearances which I sure is 10,000 a speech.  Plus her book deals which I sure didn’t make her much but  something.  Yet they walk away from a house and the tax payers eat it.
      Its all on film!!!! And still the IRS isn’t going in and doing a judicial forclosure and making them pay taxes for the gains they got by not paying back those debts.. It’s income than and they should owe taxes on the 11 million.  Hell if she making 600 grand a year why can’t she pay back 11 million.. It take her 18 years. One of these housewives just closed a deal for 120 million.  So she has the potential to make millions..Their crooks!  Why is our system rewarding this behavior.

    • Irma

      Wow! It is now  apparent that the Biggest trouble makers are Joe and Theresa. Theresa is the one hanging onto old feuds. She appears to lie about her side of the story to the other cast members to look like she is the victim, when in fact she initiates most of the disputes. They are liars and trouble makers. Wake up Caroline these people are cheats and frauds.

    • http://www.facebook.com/people/Pat-Boss/100002577250651 Pat Boss

      Teresa is stll wirh this man?  What is she thinking?  She has four girls to think about!!!!!!!

    • http://www.facebook.com/people/Pat-Boss/100002577250651 Pat Boss

      I think they all drink and curse too much!!!!!!  This season is aweful!!!! I’m done with this show!!!!!!!!!!!!!!!!!!!!!!!!!

      • Tbarrette28

        I just started watching when Daniell was leaving.  I really liked her, although she did have her issues too but the girl was real!!!!  All these people do is drink, when do they have time for their kdis????

    • Mdterp4219

      THEY ARE JUST CRAZY AND PLEASE TEACH THEM PROPER GRAMMER! :S LOL

      • Maureen J Stapleton@gmail.com

        Grammar?

    • trannydiva66

      I HOPE THEY GET SCREWED ROYALLY.ITS ABOUT TIME SOMEONE TOLD THERESA SHE’S NOT ALL THAT OR ABOVE THE LAW

    • PHOENIX

      T and Joe are low life Losers!! Danielle was a whack job but she was write about one thing… Teresa is a Ghetto Whoe! White trash oh wait 50% white trash 50% Italian…  She and Joe are liars and Teresa is ALWAYS LOOKING FOR A FIGHT. If it does not concern or benifite her she wants nothing to do with you. The things in her cook book were just mean and BTW Teresa… Wake up HONEY, Why would Caroline be jealous of YOU? and you thief jail bird of a husband? You talked about Danielle and her crimminal past well HONEY, you and your scum bag husband are right on the band wagon! BTW Caroline has money THAT THEY WORK FOR- a money making business and a nice home. Your kids are nasty brats (just like you). So while your husband is in the state penn (getting his salad tossed) you can move out of your siezed home and go live in a “Skeevey” second hand apartment… Hey maybe go back to Patterson and be a “hostess” I hear Pizza hut is looking!  Joe well maybe he can forge some more phoney documents to match your PHONEY lifestyle! HONEY!! OR IS BIATCH BETTER??

      • PHOENIX

        * WRITE = CORRECT.

      • California Girl

        Phoenix you put the nail in the coffin with that BIATCH TERESA…They are so jealous of Mellissa, Joe and Caroline and all the friends they used to have…..I think Melissa, Joe and Kathy should stay far away from Teresa and Joe….I think they are better off then wanting a relationship with those LOSER’S…..She thinks she is bad ass and she is only a piece of shit….I hope no one buys here book when she doesn’t even know how to cook…..She wants her own TV show what a jOKE!!!…..They are trouble and seems like they are going to end up in jail for FRAUD…..Also she thinks her kids are angels when they are brats…..How could her husband open a pizza place and afford to pay for a house like the one the bank is planning on taking away from them….TERESA AND JOE craw under the rock you came out of…..LOL

    • Enc5504

      Teresa and joe are scum!!….eres una zorra, mierda!

    • Caroline

      I hope Joe gets deported back to Italy–REALLY!!!—not a US citizen??? Just a couple of no talent jerks making —and taking our US money!