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Busted! #RHONJ Teresa Giudice Has Paid Off Her $414K Restitution — But Her Attorney Claimed She Was Paid Off In 2016!

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Teresa Giudice
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Teresa Giudice has paid off her $414K restitution — not so fast!

Real Housewives of New Jersey convict, Teresa Giudice, has reportedly paid off her $414,000 restitution that was part of fraud charges stemming from a 2014 conviction. Part of her Bravo wages were being garnished to fulfill this debt — and court documents indicate — the infamous reality star’s debt to the federal government is paid in full.

This news comes as a HUGE surprise since Giudice‘s attorney, James Leonard Jrstated his client was all paid up in a July 2016 airing of The Real Housewives of New Jersey. In the scene — Leonard escorts Teresa to her audio book recording, “Turning the Tables: From Housewife to Inmate and Back Again,” — and Leonard comments on his client’s rehabbed fiscal responsibility. 

“Guess what I did yesterday?” Leonard teases, bursting with the good news. “I sent your final restitution check to the government. You are completely paid in full.”

“YAY!” Teresa exclaims, adding, “I knew it was coming soon, so I’m glad it’s over with now.”

“You paid off a lot of money, within three weeks of coming home,” says Leonard. “You owe ZERO — that’s a relief right?”

“Big relief,” Teresa answers.

Nevertheless, Teresa’s financial and legal woes are not over yet. She still owes an estimated $13 million to creditors in her bankruptcy case. At this time, Teresa is currently suing her former bankruptcy attorney, James Kridel, for legal malpractice. In the suit, the reality star blames Kridel for the fraud charges that led to her incarceration. Kridel has labeled these charges as “absurd” and denies any wrongdoing.

In December an agreement was reached between Giudice and the bankruptcy trustee overseeing her case. The deal contains the following points: Teresa must “acknowledge and agree to honor any outstanding pre-petition claims” from creditors. She will “receive 55% of the ‘net proceeds’ of the Kridel claim, meaning the gross recovery through settlement or trial” minus “the administrative costs,” which the trustee will oversee. The rest will be distributed to her creditors “pursuant to the bankruptcy code,” and Teresa will get anything that’s left over.

As part of Teresa‘s fraud conviction, she’ll be on supervised release for about a year.


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