Giudice Trial on Bankruptcy Fraud Charges

[Poppy Fields]

Joe and Teresa Giudice have been ordered to stand trial next summer (7/14-15) on charges related to bankruptcy fraud. A pretrial hearing has been scheduled for December 14th. The major charges are:

* Failure to report $250,000 (an advance Teresa received from a publishing deal for her book)
* Failure to report Joe’s ownership/interest in a Pizza shop
* Failure to report a $3,333.33 monthly income
* Concealing assets including a bank account of Joe’s, two pieces of real property, vehicles, and the ownership of an online boutique called TG Fabulicious
* Presenting false income tax returns to the bankruptcy court

Debtors who are found to have committed bankruptcy fraud face three kinds of penalties:

1. forfeiture of their right to receive a discharge of their debts
2. criminal sanctions, including up to five years in prison and fines up to $250,000
3. loss of their exemptions in any property that they attempted to hide or give away.

I think the likely outcome will be that their Chapter 7 petition will be thrown out, and there will be no discharge of their $11M pile of debt. I also think they are likely to be heftily fined, if only because of the fraudulent tax returns they submitted as evidence. Those tax returns had never actually been filed with the IRS. This particular kind of fraud usually gets judges outraged.

I am kind of hoping that we'll be able to watch this on Court TV.

[BlondeOne]

I think unless they get jail time nothing will change for them. JMO but, what do they care if they get fines...they just won't pay them. LOL I don't know much about bankruptcy...if there is no discharge will they end up losing everything? Obviously the girls will probably suffer the most from being so spoiled and then having next to nothing. I feel for the girls in that aspect but maybe it will be better for them later in life by nit getting everything handed to them. We all know they are "too pretty to work" so, I am sure they will work it all out.

[Poppy Fields]

... JMO but, what do they care if they get fines...they just won't pay them.)

If they cannot pay it, I believe the Feds will attach their earnings until the fine is satisfied.

[BlondeOne]

If they cannot pay it, I believe the Feds will attach their earnings until the fine is satisfied.

True, I forgot about that. I am still amazed they were able to run up so much debt. I could never, ever live with that stress.

[Poppy Fields]

I think unless they get jail time nothing will change for them. JMO but, what do they care if they get fines...they just won't pay them. LOL I don't know much about bankruptcy...if there is no discharge will they end up losing everything? Obviously the girls will probably suffer the most from being so spoiled and then having next to nothing. I feel for the girls in that aspect but maybe it will be better for them later in life by nit getting everything handed to them. We all know they are "too pretty to work" so, I am sure they will work it all out.

Without the Chapter 7 discharge, they will owe every one of their creditors in full. Their creditors will also then be able to sue them, and execute on the judgments they win. Pretty much whatever they earn will have to be used to either pay lawyers, satisfy judgments, or both. The same is true if they try to sell their home - the judgments have to be satisfied. They will be literally drowning in debt. Of course, that is why they filed for bankruptcy to begin with. With all of the judgments that will be entered against them, I doubt they will be able to rehabilitate their credit until they hit retirement age - and maybe not even then.

I think it is clear why they lied the way they did. There is an income ceiling for Chapter 7 eligibility - the only form of bankruptcy that discharges debt. Their income exceeded the limit, so they tried to defraud the court. It backfired.

[Poppy Fields]

Husband of 'Real Housewives of New Jersey' star can't walk away from debt, judge rules - NorthJersey.com

In a separate action, the Giudices' US Bankruptcy judge has ordered Joe to pay his former business partner $260,000 for forging his name on loan documents.

"The signing of Mastropole's name was a forgery ... exhibiting willfulness and malice toward a former friend and current adversary," Stern said in his judgment in the US Bankruptcy Court in Newark.

"The extraordinary web of lies and misrepresentations woven by Giudice to implement and cover his misconduct reflects on his approach to business matters and suggest his disregard for legal restraints which would bind others. Joe Giudice was both thoroughly unconvincing as a witness and unbounded as a prevaricator in spinning a tale about the events."

Not exactly the way you want to be perceived by the judge who will try you (and your wife) on bankruptcy fraud charges this coming July.

[Kiz]

This judge means business. He's not buying Giudice's load of bull.

[Dragonlady]

This judge means business. He's not buying Giudice's load of bull.

Good!!
People who take advantage of others just for their own greedy purposes make my blood boil.

[Prism]

Wow, I'd almost forgotten about this duo. They at first looked just like most of the other RH people- stupid spending, waste galore, and no moral ground.

The same judge coming up for bankruptcy? If so, there's no place to hide.

Guess there's no more letting the little trunchkins into the kid's boutique to spend two grand at a shot, tear through shelves and drawers, and take anything they please out of the cash register, huh?

[Poppy Fields]

In a hearing on 6/28 the Guidices petition to have the fraud charges dismissed, the judge denied their petition. He did, however, grant them a continuance of the trial date. Trial is now scheduled to begin in October - just in time for Season 4 of RHoNJ to resume filming.