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Real Housewives’ biggest financial scandals: Erika Jayne’s embezzlement shocker, Jen Shah’s telemarketing scam, Teresa Giudice’s bankruptcy fraud and more

Erika Jayne, Jen Shah, Teresa Giudice and Karen Huger: four Real Housewives from across the US who face accusations of, and have even done jail time for, financial wrongdoing. Photos: @theprettymess; @teresagiudice; @officialkarenhuger/ Instagram, @RyneGregory/ Twitter

One of the things we love most about The Real Housewives franchise is the drama! But in some cases, we got a lot more drama than we anticipated. While we tune in for the show’s dinner party showdown, it’s often the off-camera court appearances that are most gripping.

So what are some of the biggest financial scandals the housewives have faced, and who ended up doing time in jail?

Real Housewives of Beverly Hills: Erika Jayne and Tom Girardi embezzling funds?

Erika Jayne and Tom Girardi are accused of embezzling money from a plane crash settlement fund. Photo: @tigandcheryltruestory/Instagram
Season 11 of the show saw the likes of Kyle Richards, Lisa Rinna and the other wives shocked to learn that Erika was divorcing Tom after 22 years. But a month after she filed for divorce – on the day of the US presidential election, no less – came the bigger news that the couple were being sued.

A lawsuit had been filed accusing them of embezzling money. As if that wasn’t bad enough, the embezzlement was allegedly from a fund for families of 2018 Lion Air flight 610 crash victims. Erika maintains that she had no idea about her lawyer spouse’s financials, but others have speculated that the divorce may even be a cover to save the California couple’s assets.

In the meantime, Erika, 50, has demanded financial support and accused Tom, 82, of cheating on her. Tom has been diagnosed with late-onset Alzheimer’s and placed under a conservatorship, with his brother at the helm.

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Real Housewives of Salt Lake City: Jen Shah’s telemarketing scam?

Jen Shah is accused of a long-running scam involving telemarketing. Photo: @therealjenshah/Instagram

The series may be only be in its first season, but there’s already plenty of drama from this Utah-based cast – including Jen Shah and her assistant Stuart Smith.

The pair were filming with a camera crew in March when they were arrested on charges of conspiracy to commit wire fraud and conspiracy to commit money laundering. The accusations, which relate to them carrying out a telemarketing scam for years, are expected to play out in the show’s second season.

They face up to 50 years in prison after investigators claimed they “built their opulent lifestyle at the expense of vulnerable, often elderly, working-class people”.

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Real Housewives of New Jersey: Joe and Teresa Giudice’s bankruptcy fraud

Joe and Teresa Giudice with their four daughters. Photo: @teresagiudice/Instagram

When the couple filed for bankruptcy, it set off a chain of events that would see them accused of mail, bank, wire, tax and bankruptcy fraud. The drama played out on season six of the show and the pair were indicted in 2014.

Joe was sentenced to 41 months in prison, but Teresa claimed she was unaware of what Joe was doing and had signed documents without knowledge of any wrongdoing. Teresa was only given 15 months and served the time (getting out four months early) before Joe so that one of them could stay home with their four daughters. They also had to pay US$414,588 each in restitution.

Teresa was back on the show as soon as early 2016 but Joe was deported to Italy and the pair have since ended their relationship.

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Real Housewives of Potomac: Ray and Karen Huger’s tax fraud

Real Housewives of Potomac’s Karen Huger and her husband Ray. Photo: @officialkarenhuger/Instagram
Season three of the Maryland-based show brought to light that the couple may not be as wealthy as Karen once claimed when she compared her spouse to the billionaire founder of Microsoft, Bill Gates.

She sparked suspicion when she sold her mansion below value, claiming they wanted to downsize after her daughter went to college. Although Karen claimed they were now living in a 10,000 sq ft house, it became apparent she was living in a small flat. In 2017, it was revealed that Ray owed millions in back taxes but Karen has maintained that she is in good standing with her personal finances and that they keep their bank accounts separate.

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  • Kyle Richards, Lisa Rinna and the rest of the Real Housewives of Beverly Hills cast were rocked by Jayne and Girardi’s divorce and embezzlement accusations
  • Jen Shah faces charges of fraud and money laundering, while Joe Giudice is serving a 40-month sentence for fraud after ex-wife Teresa completed her sentence