'Real Housewives' Teresa, Joe Giudice Indicted on Fraud Charges

Two cast members of "The Real Housewives of New Jersey" found themselves in real trouble with federal authorities Monday when they were indicted on allegations they defrauded lenders, illegally obtained mortgages and hid assets and income during a bankruptcy proceeding, U.S. Attorney Paul Fishman announced.

Teresa Giudice and husband Giuseppe "Joe" Giudice were indicted on 39 counts by a federal grand jury, Fishman said. Additionally, Giuseppe Giudice was charged with failure to file tax returns for income received between 2004 and 2008, during which time he allegedly earned approximately $1 million.

If convicted on the multiple charges, the Giudices could serve more than 50 years in prison each and be forced to pay more than $600,000 in fines. Teresa Giudice's attorney, Henry Klingeman of Newark, said she plans to plead not guilty. Giuseppe Giudice's attorney, Miles Feinstein, was not immediately available for comment.

“The privilege of living well in the United States carries certain real responsibilities, including filing tax returns when required and paying the correct amount of tax,” Shantelle P. Kitchen, special agent in charge of the IRS-Criminal Investigation Newark Field Office, said. 

“Today’s indictment alleges the Giudices did not live up to their responsibilities by failing to file tax returns, falsifying loan applications and concealing assets in their bankruptcy petition." 

Teresa Giudice, 41, and Giuseppe Giudice, 43, both Towaco residents, submitted fraudulent mortgage and loan applications to lenders from September 2001 to September 2008, according to Fishman. On the applications, the Giudices indicated that they were employed and making substantial salaries, when they were not, Fishman said. 

In September 2001, Teresa Giudice applied for a $121,500 mortgage loan and indicated on the application that she was working as an executive assistant, Fishman said. She submitted fake W-2 forms and pay stubs, acting as if they were from her employer, and she and her husband also used false information on bank loan applications, according to Fishman.

Teresa Giudice issued a statement through Klingeman.

“Today is a most difficult day for our family. I support Joe and, as a wonderful husband and father, I know he wants only the best for our lovely daughters and me," she said. "I am committed to my family and intend to maintain our lives in the best way possible, which includes continuing my career. As a result, I am hopeful that we will resolve this matter with the Government as quickly as possible."

Monday's indictment also included charges of bankruptcy fraud, as related to the 2009 bankruptcy filing by the Giudices. The couple filed for Chapter 7 bankruptcy in October 2009, and later filed for several amendments to their filing, Fishman said. As part of the claim, the Giudices were required to claim all incomes and assets, but Fishman said Teresa Giudice failed to claim her true income from the Bravo television show "The Real Housewives of New Jersey" and that she and Giuseppe Giudice did not claim businesses they owned.

“The indictment returned today alleges the Guidices lied to the bankruptcy court, to the IRS and to a number of banks,” Fishman said. “Everyone has an obligation to tell the truth when dealing with the courts, paying their taxes and applying for loans or mortgages. That’s reality.” 

Giuseppe Giudice is currently awaiting trial on separate charges that he used a fraudulent ID to obtain a driver's license from the New Jersey Department of Motor Vehicles while his was suspended following a DWI arrest.

Klingeman said he will work to bring justice to Teresa Giudice.

“Teresa will plead 'not guilty,'" he said. "The judicial process that begins today with an indictment is a search for the truth.  As it moves forward, we look forward to vindicating her.”