Teresa & Joe: Part 1

In this episode you will learn the background and events preceding Teresa & Joe’s federal indictment. We explain exactly what happened leading up to the federal criminal charges, with specific references to the premier of RHONJ, the casting process as described in Teresa’s book, and the previous lawsuits which likely got the attention of the Department of Justice. We give you all the details of the bankruptcy filings and show you exactly where it went wrong. We also explain the fascinating parallels with the Erika and Tom Girardi bankruptcies, and how those similarities could spell trouble for Erika Jayne.

Timeline: Part 1

1986 - Teresa and Joe meet when Teresa was just 14.

October 23, 1999 - Teresa & Joe get married. Before being cast on RHONJ, Teresa worked as an associate buyer at Macy’s in New York City. Teresa has a degree from Berkeley College majoring in Fashion Marketing and Management. Joe worked in construction and in the restaurant business.

January 2001 - May 2008 (according to the indictment) - Teresa is unemployed and has no income, but that’s kinda shady because from 2001 to 2008 Teresa has three babies. Taking care of three children is work.

January 2001  - Gia is born.

October 2004 - Gabriella is born.

2005  - Joe Giudice and Joe Mastropole form various limited liability companies (LLCs) for the purpose of buying real estate. They utilize these LLCs to purchase various properties in East Orange, including 17 Webster Place (Webster Place), 168-170 South Clinton Street (Clinton Street), and 6 Glenwood Avenue (Glenwood Avenue). This sum was secured by mortgages on each of the three properties for the full amount owed. All the housing units were section 8 housing - the rent is paid by the government and sent to Joe Giudice.

February 2006 - Milania is born.

2006 - Joe Giudice agrees to buy out Joe Mastropole’s interest in the real estate holding LLCs for $586,000. Joe Mastropole records a mortgage on the properties to secure the loan, but then Joe Giudice sues Mastropole wanting Mastropole to refinance one of the properties.

2007 - Real Housewives (Sirens Media) producers start casting for RHONJ. According to Teresa they went to the Chateau Salon in Franklin Lakes where everyone got their hair done, and asked Chateau’s owner, Victor Castro, if he could recommend any clients with over the top lifestyles.

May 2007 - Joe Giudice and Mastropole meet without counsel and agree to settle their disputes. They write the terms of the settlement on a cocktail napkin and sign it. The napkin reads "$300,000 [within] 10 days; $260,000 6 [months]; mortgage on 17 Webster; [payment] due six [months] with personal guaranty. Not [paid] in 6 [months], interest 10% per [month]."

June 13, 2007 - The settlement terms are formalized and filed with the court (on an actual document not a cocktail napkin). As part of the settlement Teresa & Joe execute a personal guaranty and agree to pay Mastropole 260K with interest.

June 14, 2007 - The very next day Joe & Teresa file a fraudulent discharge of Mastropole’s mortgage on the properties. According to court documents, Giudice forged Mastropole’s signature and the signature of other parties including the notary public.

2004 - 2008 - According to court documents, throughout this time the Giudices apply for and are granted several loans using falsified information, W-2s and falsified tax returns. By the beginning of 2008 they receive more than $3.5 million in loans by using false information in their documents and lying about their income.

May 2009 - RHONJ premieres on Bravo and the Giudices appear on RHONJ for the first time.

September 2009 - Audriana is born.

October 19, 2009 - Mastropole files pleadings with the court seeking the unpaid 260K.

October 22, 2009 - One week before they file for bankruptcy Teresa signs a book contract with Hyperion. In the book contract Teresa was to receive an advance of $250K and an additional advance of 30K and royalties based on sales of her cookbook.

October 23, 2009 - Joseph Mastropole wins a civil lawsuit against Joe Giudice for $260,000. According to court documents, Giudice forged Mastropole’s name on mortgage documents for an investment property the two owned jointly in New Jersey. In addition to forging Mastropole’s signature, Giudice also stole the notary stamp of his previous assistant and used it to notarize mortgage documents in order to acquire bank loans and pocket the profits. Mastropole filed a civil suit against Giudice and in October 2009, won a judgement of $260,000.

October 29, 2009 - the Giudices file for bankruptcy, claiming they have about $8.7 million in liabilities they have to pay. On their statement of financial affairs, they state that their gross income from employment, trade, profession, or operation of businesses totaled $575,000 in 2008, $598,000 in 2007, and $312,000 in 2006. The Giudices signed the statement at the end of the Statement of Financial Affairs attesting under penalty of perjury that the information contained in the Statement of Financial Affairs was true and correct. Joe Mastropole files an adversary action to block the discharge of the debt owed to him with the bankruptcy court.