Next Chapter for Teresa and Joe Giudice: Real Inmates Of Federal Pri...

10/02/14
Teresa and Joe Giudice arrive in court on March 4.
Eduardo Munoz/Reuters

“Real Housewives of New Jersey” star Teresa Giudice said filing for bankruptcy made her and her husband stronger. Committing bankruptcy fraud made them inmates.

Judge Esther Salas sentenced Ms. Giudice to 15 months in federal prison Thursday after giving husband Joe Giudice 41 months and ordering him to pay restitution. The judge said they can serve time separately, meaning one of them will be home with their four daughters.

The judge accused the couple of offering “glaring” omissions even in their pre-sentencing financial disclosures, calling it a “direct affront to the court,” according to NJ.com.

The couple pleaded guilty earlier this year to three counts of bankruptcy fraud as well as one count of mail and wire fraud conspiracy. Mr. Giudice, who also pleaded guilty to failing to file a 2004 tax return, faced up to four years in prison and could still be deported back to Italy after his prison term. Ms. Giudice faced a maximum sentence of 27 months. The bankruptcy fraud included hiding certain businesses they owned as well as rental income and Ms. Giudice’s true income from the “Housewives” show.

A lawyer for the Giudices wasn’t immediately available for comment Thursday afternoon.

Twitter had its usual convulsions trying to digest the news Thursday, although Ms. Giudice’s current and former “Real Housewives” co-stars were not tweeting before her sentencing was read. That is, aside from Jim Marchese, husband of newbie Amber Marchese and a stirrer of trouble during many of this season’s episodes.

Mr. Marchese, who runs a real-estate firm, found himself in a legal matter seven years ago after blowing the whistle on possible fraudulent marketing of a cancer drug at a former employer. The Justice Department eventually recommended he receive no award for his tip, thinking he was behind the fraud, although he was eventually awarded $1.6 million, according to the New York Times. Mr. Marchese told the Times he did nothing wrong.

For the Giudices, the trouble started when their bankruptcy trustee started asking tough questions about their assets and income. Things got worse in 2011, when Mr. Giudice evoked his Fifth Amendment rights against self-incrimination after being questioned about his assets and income. That led to his debts not being discharged, an, investigation and eventually charges by the U.S. Attorney.

Before the settlement, the Giudices faced more than three dozen criminal counts, and prison time of as much as 175 years.

Write to Joseph Checkler at [email protected]. Follow him on Twitter at @JoeCheckler.

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