15 Jan Tax Fraud Conviction: Teresa and Joe Giudice
The show Real Housewives of New Jersey made Teresa and Joe Giudice quite famous, but after only 4 years, the couple faced 39 counts of conspiracy to commit fraud. In the show, she was described as a big spender. She liked getting spa treatments, spending huge amounts of money on shopping ($129,000 on furniture for one room), and spending time with her husband and three daughters. Joe owned a successful construction business and was able to give his family a luxurious life in a $1.7 million mansion.
But the dream life came to an end when they had to file for bankruptcy, claiming they were almost $11 million in debt. But they couldn’t deceive the court. In 2013, they were indicted on 39 counts of conspiracy to commit bank fraud, bankruptcy fraud, mail and wire fraud, and making false statements on loan applications. There were also some separate charges against Joe – he failed to file federal income tax returns between 2004 and 2008.
The indictment came their way in 2013 when the couple was accused of overstating their income (before their reality show premiered in 2009) when they were applying for bank loans. The Giudice’s were accused of using a bankruptcy filing to hide their increased assets after the first season of the TV show airing. Each count of failing to file a tax return can result in a $100,000 fine and up to one year in prison. Each count of bankruptcy fraud carries a $250,000 fine and up to five years in prison.
In 2014, the couple was convicted of fraud and (reportedly) made the whole thing worse by withholding information. Teresa and Joe had to list all their specific financial information and assets and bring them to court to complete probation reports. However, the judge noticed that certain items (adding up to $75,000) were missing.
What offended the court was the lack of transparency. Both Teresa and Joe are businesspeople, so they needed to know that full disclosure of their assets was a requirement. The judge didn’t think that they respected or understood the law, and all chances for probation were lost due to their lack of transparency.
Prison and Release
Joe pleaded guilty to five of the counts against him, while Terese pleaded guilty to four. The final sentence for Joe was repayment of $414,588 in restitution and 41 months in federal prison. Teresa Giudice was released from Federal Correctional Institution in Danbury (Connecticut) on December 23, 2015, after spending almost a year there.
After being released from Fort Dix Federal Correctional Institution in New Jersey (March 2016), Joe wasn’t able to stay with his family. He was ordered to be deported back to Italy at the end of 2018. After being released from federal prison, Joe was transferred to an immigration detention center before being sent to Italy several months later.
Teresa was a guest on Watch What Happens Live, where she talked about her sentencing with Andy Cohen. She said that she hadn’t understood that jail was a real possibility. In addition to serving jail time, Joe and Teresa also had to serve 2 years of supervised release.
If you failed to pay your taxes and are facing trouble with the IRS, be sure to reach out to Golden Tax Relief. Our legal professionals will help you get the best possible outcome for any problems or inconveniences with the IRS. Contact us here and check out our blog for more information.