Teresa Giudice and her husband Joe Giudice pleaded guilty on Tuesday to conspiracy to commit mail and wire fraud as well as three counts of bankruptcy fraud as part of a plea deal to resolve their recent 41-count federal fraud indictment.
ADVERTISEMENT
"Today I took responsibility for a series of mistakes I made several years ago," Teresa's attorney Henry Klingeman read in a statement on her behalf, according to Reuters.
"I am heartbroken that this is affecting my family, especially my four young daughters, who mean more to me than anything in the world."
"Teresa and Giuseppe Giudice used deception and fraud to cheat banks, bankruptcy court and the IRS," explained U.S. Attorney Paul Fishman of the couple, who had faced up to 175 years in prison in the original a 41-count federal fraud indictment they had been charged with.
The Real Housewives of New Jersey stars pleaded guilty before U.S. District Court Judge Esther Salas in federal court in Newark, NJ, Reuters reported. In addition to committing mail and wire fraud as well as bankruptcy fraud, Joe also pleaded guilty to failure to file tax returns on nearly $1 million worth of his income.
ADVERTISEMENT
The couple reportedly owned up the the fact they had submitted fraudulent loan and mortgage applications in which they claimed false salaries between the years of 2001 and 2008.
Teresa allegedly faces just over two years in prison, while Joe, an Italian citizen, could be looking at almost four years behind bars and possible deportation.
As part of their plea deals, Teresa and Joe will be forced to forfeit any money obtained via their fraudulent schemes. The amount of money owed will be determined at the couple's July 8 sentencing, when Teresa must also cough up $200,000, according to Reuters.
In September 2001, according to prosecutors, Teresa applied for a $121,500 mortgage by allegedly submitting fake W-2 forms and pay stubs. She reportedly lied in saying she worked as an executive assistant at the time.
Four years later, the reality TV star similarly attempted to obtain a $361,250 mortgage, claiming she served as a real estate agent and had been raking in a $15,000-per month salary. However, Teresa was reportedly unemployed at the time.
ADVERTISEMENT
Subsequently, in 2009, the married pair reportedly filed for bankruptcy protection all the while hiding businesses in their name, any rental property income and money earned from The Real Housewives of New Jersey, Reuters reported.
Wendy Feldman, a crisis consultant hired by the couple, told E! News how Teresa and Joe are just beginning to prepare for their sentencing.
"This includes all steps where Teresa and Joe will present their side to the government. We try to paint a picture of who they are as people. It's post conviction. What we do now is we show you the person not the crime. It's up to the judge. It's the person not the crime," Feldman explained. "Teresa and Joe have great respect for the process."
The couple's legal proceedings are a "very unique circumstance," added Feldman.
"There has never been a case of this magnitude involving a celebrity and his wife from a hit show. It could very well be a case of reverse celebrity justice."
ADVERTISEMENT
Both Teresa and Joe previously pleaded not guilty to the charges against them and had requested separate trials so they could testify that Teresa had no knowledge of or involvement in the criminal activity they were accused of.
Teresa also appeared on The Celebrity Apprentice's fifth season.
About The Author: Elizabeth Kwiatkowski