Giudices’ Homes Are in Foreclosure; Teresa Could Be Released from Prison to a Halfway House or Home Confinement by December 23, 2015; Teresa Sues Bankruptcy Attorney and Hires Leonard Law Group

January 5, 2015 11 comments

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UPDATE 4/16/2015: On April 16, 2015, NJ.com reported that the bank which holds the mortgage on the Guidices’ Montville Township home started foreclosure proceedings against the couple, and that the couple’s other two homes are in pre-foreclosure:

Community Bank of Bergen County filed a notice of foreclosure in Morris County Superior Court Wednesday, April 15, on their Indian Lane property, according to court papers obtained by NJ Advance Media. The couple had returned to the mansion to the market this week with a $2.99 million listing price.

Community Bank was listed as one of the couple’s creditors in its 2010 bankruptcy filing, with a $1.7 million claim on the property. The couple eventually abandoned their bankruptcy claim after the trustee representing their creditors alleged they hid assets and income, which led to a federal prosecution that netted Teresa 15 months in prison and Joe 41 months. The trustee closed out the bankruptcy proceedings last year after only collecting $7,500; the end of the proceedings gave banks and other credits free reign to seek repayment.

The couple also had two other properties on the market since last year: a vacation home in Manahawkin and a modest three-bedroom home they rented out in Lincoln Park. But they pulled those homes off the market earlier this month. According to Zillow.com, the two homes are in pre-foreclosure, although there has been no notice of foreclosure for the Manahawkin home filed with Ocean County Superior Court. In May 2014, a mortgage holder on the Lincoln Park property filed a notice in Morris County Superior Court, but no further action has been taken.

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UPDATE 4/23/2015: NJ.com reported on April 20, 2015, that the Giudices’ 1,350 SF shore home at 49 Sylvia Lane in Manahawkin, NJ (Stafford Township), will be go to action on May 19, 2015 (see image above). According to the Giudices’ October 2009 bankruptcy filing, the couple took out three mortgages on the property, which they purchased for $347,000 in December 2005 (near the peak of the real estate bubble). America’s Servicing Company holds the first mortgage and initiated the foreclosure proceeding.

Shore House at 49 Sylvia Lane, Manahawkin, NJ (Amount Owed – $550,266):

  • 1st mortgage of $266,365 with America’s Servicing Co. (in Teresa’s name)
  • 2nd mortgage of $33,903 with Ocwen Loan Servicing (in Teresa’s name)
  • 3rd mortgage of $249,998 with Wachovia (in Teresa’s name)

6 Indian Lane, Towaco, NJ

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UPDATE 3/1/2015: On March 1, 2015, the Giudices took their home off the market. It was on the market for six months, with two price reductions of $500,000 each. According to RadarOnline, Teresa and Joe are planning to let the house go into foreclosure, and multiple sources have confirmed the plan to stop making mortgage payments on the home and allow the bank to take back the property. The Giudices also placed their vacation home in Manahawkin and a rental property in Lincoln Park on the market in September. The Lincoln Park property is in default and has also been removed from the market.

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On January 5, 2015, Joe and Teresa Giudice, for the second time, reduced the asking price of their home in Montville/Towaco, NJ, by $500,000. The new price is $2,999,000. The first $500,000 price cut was on November 6, 2014, which lowered the price to $3,499,000. The original asking price was $3,999,000, about twice the home’s estimated market value (Zillow estimates the home to be worth $2,036,408). The Giudices have a $1.72 million mortgage on the property.

According to TMZ:

The latest cut brings the asking price to a relatively reasonable $2.99 million. Their realtor believes that should do the trick. Teresa and Joe are cash strapped after their conviction and they want to radically downsize.

On September 8, 2014, just weeks before their sentencing hearing, the Giudices listed their mansion for sale. They also put their shore house and a rental property in Lincoln Park, NJ on the market (click here and read the last comment for more details).

In October 2009, when the Giudices filed for bankruptcy protection, they briefly listed their home for sale for $3.99 million, but they pulled it from the market on June 11, 2010. They withdrew their bankruptcy petitions in late 2011 after the court determined they both committed fraud by failing to disclose all their assets.

Given the chance to respond to the Trustee’s allegations, Joe Giudice had a change of heart about his bankruptcy. When questioned about hiding the family’s assets, Joe chose to invoke his Fifth Amendment right against self-incrimination; and, soon thereafter, he settled his dispute with the Trustee. [Source]

According to the consent order, Teresa agrees to waive discharge of her debts, and acknowledges that she wishes to resolve the Trustee’s proceedings against her “without the need for further inquiry or litigation, and without her making any further admissions.” [Source]

Since 2011, the Giudices have added the carport and detached garages (see photos above; click here for more photos of the home).

Teresa Giudice reported to federal prison in Danbury, Connecticut in the early morning hours of January 5, 2015, to begin her 15-month sentence for mortgage fraud and bankruptcy fraud.

teresa inmate info

While federal statute calls for an inmate to serve 85% of the sentence imposed, under BOP calculations the inmate will serve approximately 87.5% of their time. Under the Second Chance Act, an inmates may serve the last 10 percent of their sentence (up to six months) at a halfway house or on home incarceration. If Teresa earns her maximum of 60 days credit for “good conduct time,” she would serve 11 1/2 months in Danbury prison and then she would be released around December 23, 2015 to a halfway house or under house arrest to serve out the last 45 days of the 13 months to complete her sentence (15 months minus 60 days equals 13 months). Parole applies only if the sentence is for five years or longer.

When asked by Good Morning America about any possibility of early release, Teresa’s attorney, James L. Leonard Jr., said that would be “up to the judge and the Bureau of Prisons.” However, Leonard told the New York Post and ET that Teresa could be home by next Christmas:

“We project Teresa will be home sometime before Christmas.”

“Your expectations are you will serve 85% of your sentence and that then you will be able to get out… on house arrest at some point prior to the 85%,” Leonard revealed. “Right now, barring any change in her sentence, she is probably there until December.”

For Teresa, the Bureau of Prisons (BOP) calculated her release date with “good conduct time” credit as February 5, 2016.

At the beginning of a prisoner’s sentence, the full amount of “good conduct time” is credited (awarded up front) and reflected in the projected release date. “Good conduct time” is subject to forfeiture if the prisoner commits disciplinary infractions.

Good conduct time is credited at 54 days per year, prorated, pursuant to PS 5884.03. In reality, the BOP gives an inmate 47 days per year after the first year’s credit. So while the statute calls for an inmate to serve 85% of the sentence imposed, the BOP credits the amount of time actually served. So the BOP makes the inmate serve approximately 87.5% of their time. In other words, inmates who earn their “good conduct time” end up serving 87.5% percent of their sentences.

In Teresa’s case, approximately 60 days of “good conduct time” can be earned (approximately 4 days per month x 15 months), so the calculation by the BOP for her projected release is two months less than her 15-month sentence.

In addition to “good conduct time” credit, the BOP may award “extra good time” credit for performing exceptionally meritorious service, duties of outstanding importance, or for employment in an industry or camp.

“Extra good time” is awarded at a rate of three days per month during the first 12 months, and at the rate of five days per month thereafter. Furthermore, any staff member may recommend to the Warden the approval of an inmate for a “lump sum award” of “extra good time.” Such recommendations must be for an exceptional act or service that is not a part of a regularly assigned duty. The Warden may make “lump sum awards” of “extra good time” of not more than 30 days.

Under the Second Chance Act, inmates may serve the last 10 percent of their sentence (up to six months) at a halfway house or home incarceration (inmates can serve half of this period at the halfway house and half of this period on home incarceration). Ten percent of Teresa’s 15-month sentence is approximately 45 days, or about a month and a half.

The BOP calculated release date is the date the inmate is released from BOP custody, which includes prison time and halfway house/home confinement under the Second Chance Act.

Parole applies only if the sentence is for five years or longer: 18 USC4206(d) requires the Parole Commission to release an offender after he has served two-thirds of the sentence, unless the Commission determines he has seriously violated BOP prison rules or regulations or there is a reasonable probability he will commit a crime.

If Teresa earns her maximum of 60 days credit for “good conduct time,” she would serve 11 1/2 months in Danbury prison and then she would be released around December 23, 2015 to a halfway house or under house arrest to serve out the last 45 days of the 13 months to complete her sentence (15 months minus 60 days equals 13 months). She would then be on supervised release for two years.

For example, Bernie Kerik, a former New York City police commissioner and Al Manzo’s best friend, spent the last five months of his four-year federal sentence on home confinement (he pleaded guilty in 2009 to eight charges, including criminal conspiracy, tax fraud and lying under oath).

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Leonard, who has “been involved with Teresa now for more than a month,” is a criminal defense attorney turned entertainment lawyer (Leonard Law Group, LLC) who is making the rounds with various media outlets, putting a positive spin on things.

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Producer Reveals Shocking Behind-the-Scenes Secrets About the Real Housewives of New Jersey (Exclusive Originally Published at FameWhorgas on September 23, 2012)

November 1, 2014 1 comment

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Screenshots from season 4, episode 19
(click the three separate images to enlarge the columns)

The following transcript is an interview with a former producer for The Real Housewives of New Jersey. The interview was conducted on September 17, 2012 and was first published at FameWhorgas in four parts starting on September 23, 2012. The interviewer, who exclusively shared this with FameWhorgas, was writing a piece on the reality of reality television and forwarded parts of the interview pertaining to RHONJ for the purpose of reading fan comments to get a different perspective on the transcript. I will not disclose the names of the interviewer and interviewee; however, I can say that I received this directly from the interviewer: this person, the one who conducted the interview, is the cousin of the former producer. My source saw that people were doubting the legitimacy of the interview when it was first published at FameWhorgas on September 23, 2012, so he/she wrote the following explanation:

“I was asked by my country’s main news website to write a piece on the reality of reality television. My cousin worked on RHONJ, so I asked for an interview. The interview was only given because RHONJ does not screen in my country, and I promised anonymity. We also don’t have any Bravo shows on television here. I called my cousin in Washington and spoke for 20 minutes before realizing I would have to watch the RHONJ to understand what was going on and who was who. So I went online and watched every episode and called back a few weeks later. The second interview (which was recorded) was an hour and a half and mentioned numerous shows from TLC and Oxygen, but I have edited it down to the relevant parts, mainly due to privacy for my cousin.”

Background Information

Q: “So can you tell me about your role on the RHONJ without giving away who you are”?

A: “It’s fine, my contract has finished. I worked on season 3 and 4 of RHONJ as a post production supervisor for 15 episodes.”

Q: “Can you explain why you no longer work with the RHONJ? Does it have anything to do with the rumors that the production team was fired due to a conflict of interest?”

A: “Not true at all, I can’t speak for everyone, um, there are quiet a few of the same team returning for season 5, but I was offered a role on another show and decided to leave for my career; no one was fired for a conflict of interest though.”

Q: “So how ‘real’ is the show? We discussed before (in a private conversation) about the various blog rumours; can you clear anything up?”

A: “Well, if you give me specifics, I can try.”

Caroline Manzo and Teresa Giudice’s Feud

Q: “I’m curious about the Caroline/Teresa feud. Was she really that angry that Teresa wrote those comments in her cookbook?”

A: (laughing) “Oh come on, at the start of the season the production team sits down and gives a general overview of where we want the storyline for the show to go. ALL of the wives are in on this. We discuss popular storylines from the season before, storylines that need tying up, and also ways of threading in new storylines that look organic to the story. Do you really think we spend hundreds of thousands of dollars on just following these woman around with no plan? No, the season and the storyline has a basic outline from the first day.”

Q: “So you’re saying there is no feud?”

A: “I’m saying the feud you are being fed is for television only and there are bigger issues there.”

Q: “Then why are we not being told what the bigger drama is? Wouldn’t it be better to show that than manufacturing the drama?”

A: “It’s up to the wives what they choose to put out into the public forum; nothing is forced on them.”

Jacqueline Laurita and Teresa Giudice’s Feud

Q: “What about Jacqueline and Teresa?”

A: “We knew at the end of season 3 that their friendship was ending; the main reason, I was told, for the feud was because Jacqueline was offered several endorsement deals (including a teeth whitener and a real fruit-based alchohol), and Teresa organised deals for herself with similar products which turned off the company wanting to invest in Jax and the Housewives’ name.”

Q: “Well, why was this not mentioned throughout the season? Why are we getting this confusing story that makes Jacqueline look crazy? Why not explain this to the viewers?”

A: “Jacqueline’s ‘character’ wouldn’t have endorsement deals; it didn’t feel right for the character. Jacqueline (the character) is a loving home mother who is trying to raise her children; we couldn’t go from doting housewife to celebrity endorsement maker; it wouldn’t feel organic.”

Dina Manzo Quitting the Show in Season 2

Q: “In season 2 you had a change of cast with Dina Manzo leaving; did she really leave because of Danielle?”

A: “There were legal issues around the filming of Dina’s daughter, and Dina and Danielle had off screen legal issues. Dina threatened to quit the show unless Danielle’s contract for season 2 was shortened; she basically told the producers it was her family on the show or Danielle, but the others didn’t back her, so she quit the show.”

Q: “What about Teresa? Did Teresa threaten to walk too?”

A: “No, none of the other wives did; that is why Dina is so angry at her family; I guess she feels like they chose the show over her.”

Q: “Well they did, so why is she speaking to Teresa then and not the others?”

A: “The others were her family.”

 

The Addition of the Gorgas to the Show and the Christening in Season 3

Q: “So tell me about the casting of the Gorga family? Did they really send in an audition tape saying they would take down Teresa, mafia style?”

A: “They auditioned, as does everyone. Look, it’s not like just because she is Teresa’s sister-in-law we instantly cast her because we had heard of bad blood between them. Teresa’s brother and Melissa were filmed for a short period and that was edited into a small compilation to see if they were interesting enough to be on television. This happens on every single show. Melissa does say that they will take down Teresa in the video, but in a playful manner. I’m also sure it’s been leaked onto the net, so it wouldn’t be hard to find.”

Q: “What can you tell me about the christening episode that introduces the Gorgas?”

A: “Well, I can say I was actually there that day. It was our first full day filming with a large team; we had been filming previous to that, but they were establishing shots. It was much worse than what was shown: the extended family didn’t want anything on camera, so what you don’t see is family members getting violent with the crew and grabbing their cameras and ripping microphone packs off and throwing them across the room. It was chaos.”

Q: “Why did Joe Gorga react the way he did? He was crazy.”

A: “I’ll just say, first day shooting nerves can make some drink and others take….I’ll leave it at that.”

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Editing Problems with Season 4

Q: “What is going on with the editing for this season [season 4]?

A: “Can you elaborate?”

Teresa Giudice Blogged “I’m So Over This Made-up Drama” – FW Couldn’t Agree More!

October 26, 2014 481 comments

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This post was originally published on September 20, 2013 at 11:25 AM EST.

On September 18, 2012, Teresa Giudice wrote in her Bravo blog for the season 4 finale that she is “so over all of this backwards, made-up drama.” I couldn’t agree more, which is why I am no longer blogging about the Housewives. I have taken many of my blog posts offline but I may change my mind in the future and republish some of them.

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UPDATE OCTOBER 2014: I added comments and updated several older blogs about the Housewives to provide information on 2014 events. Click here or “FW Blog Post Titles” on the menu bar for a list of published stories — the updated ones are at the top of the list with the dates of the last updates.

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