'Real Housewives of New Jersey' Stars Indicted on Fraud Charges

1:04 PM PST 07/29/2013 by Associated Press
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Teresa and Joe Giudice

Teresa Giudice, charged with committing bank and bankruptcy fraud alongside her husband, Joe, will plead not guilty, according to her attorney.

NEWARK -- Real Housewives of New Jersey star Teresa Giudice says she and her husband, Joe, hope to resolve federal fraud charges as quickly as possible.

A 39-count indictment handed up Monday in federal court in Newark accuses the couple of bank and bankruptcy fraud. Joe Giudice is also accused of failing to file five years of tax returns, before the show began airing, when he allegedly earned nearly $1 million.

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Teresa Guidice's attorney says she will plead not guilty and that "we look forward to vindicating her."

She also issued her own statement saying "today is a most difficult day for our family." She says she supports her husband and is committed to continuing her career.

The show is in its fifth season on Bravo. A network spokesman had no comment.

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The Giudices are accused of exaggerating their income while applying for loans before their TV show debuted in 2009, then hiding their improving fortunes in a bankruptcy filing after the first season aired.

The reality TV stars submitted fraudulent mortgage and other loan applications from 2001 through 2008, a year before their show debuted on Bravo, making phony claims about their employment status and salaries, the indictment said.

The two were scheduled to make their initial court appearances Tuesday.

"The indictment returned today alleges the Giudices lied to the bankruptcy court, to the IRS and to a number of banks," U.S. Attorney Paul 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."

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When Teresa Giudice filed for a mortgage loan of $121,000 in 2001, she falsely claimed she worked as an executive assistant, submitting fake W-2 forms and fake pay stubs as part of the ruse, the indictment said.

In their petition for bankruptcy protection, initiated in October 2009, the couple concealed businesses they owned, rental income they received, and Teresa's true income from Real Housewives, website sales and personal appearances, the indictment said.

Prosecutors said the couple also hid their anticipated increase in income from the then-upcoming second year of the show.

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