Sounds like someone has not really learned her lesson. Teresa Giudice is still serving her prison sentence, but she’s filed a lawsuit against her former bankruptcy attorney, alleging that his “negligence” and “missteps” are the reason she’s behind bars.
Teresa’s malpractice attorney, Carlos Cuevas, said in a statement:
[Attorney James Kredel’s] legal malpractice is the reason why she is incarcerated.”
So what did James Kredel have to say about Teresa’s allegations?
She went to jail because she committed crimes, which were not participated in by me. She had about 2.5 hours of testimony before she went to jail where she took full responsibility for the crimes. However, I suppose things have changed in her mind.
“I have read the transcript and the judge made it very clear that she had originally decided not to send her to jail, but because she had falsified her assets before the sentencing she decided to send her to jail. She was chastised by the judge well after I represented her. There were failures to file income taxes, which occurred many years before we knew her. Her falsifying W2’s for mortgages – that has nothing to do with her bankruptcy.”
Yeah, that sounds like what I remember, too.
Teresa is alleging legal malpractice, breach of contract, and breach of fiduciary duty. She’s suing for an unspecified amount of money. According to the complaint, the lawsuit is:
to vindicate [her] legal rights, her good name and reputation.”
The financial damages are:
because she has suffered significant monetary damages because of Defendant Kridel’s negligence. [But the money] cannot restore her freedom, her good name, her lost professional opportunities, or her agonizing, extended absence from her husband and children’s daily lives.
“The very lawyer retained to prepare accurate bankruptcy documents literally led his client into the cross-hairs of federal prosecutors, and a prison cell. This is a consequence of Defendant Kridel’s several material errors and the concealment of his malpractice.
“Defendant Kridel continuously filed documents that were materially inaccurate, but he permitted Plaintiff Giudice to sign declarations under penalty of perjury that the documents were accurate.
[Kridel’s failure to] “adequately consult” [with Giudice resulted in his] filing bankruptcy schedules and a statement of financial affairs with numerous material errors and omissions.”
Meanwhile, James Kridel suggested that some of what happened to Teresa was due to her being a reality TV personality.
[The bankruptcy] probably brought attention on her, but this is something which has a lot to do with all of her comments on TV, showing off her huge mansion and the jewelry she wears and the cash she spends. She’s got to be subject to scrutiny. But it’s not as a consequence of anything that occurred in the bankruptcy petition.
“That’s what occurred on TV. Prosecutors watch TV and they draw their own conclusions. She wasn’t sent to jail for anything that occurred as a consequence of her coming to this office. She went to jail for things she did herself.
“We didn’t falsify a W2 for her, her tax returns, or not file them. These were supposed to be done by people other than us. To say that we participated is ridiculous. We tried to preclude them from selling her assets in a public sale. We were successful in representing her. I think we did everything we were supposed to do. I don’t think we did anything wrong.”
He said that it was during the bankruptcy proceedings that the government notified him that she hadn’t filed taxes for the past 10 years. OMG.
Clearly we were not involved in that,” he says. “She well knew that, unless she was in a coma for 10 years. That triggered people to examine, if she didn’t have a tax return how did she get mortgages? This came out of the blue. We had wished her well.
“She seems to go from attorney to attorney. I see some of the comments she makes from prison. If they refer to us, they’re ridiculous. All we did was try to help her. In a bankruptcy you have to sign a petition. And you say that everything in it is true and accurate. She signed it. Then you go to the meeting with the Chapter 7 trustee.
“They ask, are the statements here true and accurate? Yes they are. After that she appeared at a deposition in bankruptcy court. Same questions asked. All of those sworn statements by her are now untrue? She was here on a regular basis. I am sorry this is what she thinks. She admitted under oath that she took full responsibility for these crimes. I guess now she wants to say that she didn’t commit them, somebody else did.”
Meanwhile, Teresa alleges that James Kridel should have known she was “financially unsophisticated.”
From the outset it was apparent that Defendant Kridel lacked the requisite skill and experience to successfully perform the procedures. Each time Defendant Kridel performed a subsequent procedure the situation further deteriorated.
“Defendant Kridel concealed from Plaintiff Giudice the gravity of the situation and his egregious malpractice. [Kridel] failed to disclose to Plaintiff Giudice his serious and numerous errors and omissions. Defendant Kridel failed advise Plaintiff Giudice that she immediately needed to retain other bankruptcy counsel and retain a criminal lawyer to rectify his egregious legal malpractice.
“Kridel stood silently and chose to bury his mistakes at Plaintiff Giudice’s expense. The consequence of Defendant Kridel’s horrific and unconscionable conduct is that Plaintiff Giudice is incarcerated. Ms. Giudice looks forward to her day in court.”
Something tells me Teresa’s just spending more money that she probably doesn’t have. It’s unfortunate. Like she herself said before she reported to prison, she had to stop just signing documents and understand what she was signing! It’s tough, though: a lot of wives do that (leave the financial matters up to their husbands and advisors). It’ll be interesting to see how this plays out.
Photos by FAMEFLYNET