The real estate tycoon Mauricio Umansky, who is equally well-known for his opulent listings as he is for being the romantic partner of Kyle Richards, may be in some serious hot water—and not the type you find in a spa in a Beverly Hills house.
Million-dollar transactions and reality TV stardom drove Mauricio’s glittering career, but now he is facing charges that could bring down his painstakingly constructed empire.
Mauricio Obtained Deceptive Loans for Pandemic Relief
So, what is the current scandal? A lawsuit has been filed against Mauricio, alleging that he obtained $3.5 million in pandemic relief loans through fraud.
Realtor LLC is pursuing the 54-year-old and his real estate conglomerate, The Agency, for allegedly falsifying their need for two substantial Payroll Protection Program (PPP) and CARES Act loans, according to court documents obtained by Us Weekly on August 29.
The entire amount owed? $3,521,153.00 to be exact.
Now, during the COVID-19 lockdowns, these loans were intended to assist financially troubled companies in preventing their workers from losing their jobs. However, the lawsuit implies that The Agency lied quickly and falsified its claims, saying they required the money in order to continue paying their employees.
The documents continue by accusing Mauricio’s company of requesting and receiving far more than they were legally allowed to—that is, more than the 2.5 times monthly payroll maximum, which is restricted at $100,000 per employee yearly.
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This is when the juicy part comes in: Realtor LLC contends that the pandemic shutdowns shouldn’t have had a significant impact on The Agency in the first place. Why? Since the ultra-rich—think millionaires and billionaires—weren’t exactly pinching pennies throughout the crisis, they are their bread and butter.
The lawsuit even goes so far as to say that The Agency’s earnings during the pandemic skyrocketed, totaling a staggering $11.2 billion in 2020 and $6.5 billion in 2020.
“Defendants would have kept sizable reserves to continue paying their employees if they had known this. The lawsuit states, “To do otherwise would have been egregiously irresponsible, especially for experts in the real estate markets.”
“Defendants explicitly did not present themselves as egregiously irresponsible, as alleged above, and their success and experience confirm they were not.”
If Mauricio Loses, He Might Have To Pay A Lot
Mauricio and his business are now being demanded in the case to pay three times the amount of damages they are said to have caused. Hurt.
Umansky responded to In Touch‘s initial article on the story with little delay. He categorically denies the charges, and in a statement to Us Weekly, a representative for The Agency reiterated this position.
The representative said the company has always placed a high priority on operating with integrity, even though they are unable to discuss pending legal problems.
Although they acknowledged the difficulties brought on by the COVID-19 epidemic, such as layoffs and budget cuts, they underlined their dedication to providing for clients and helping staff members through that trying period.
They have said quite clearly that they plan to forcefully refute any assertions that they believe to be unfounded.
One can’t help but wonder as Mauricio battles this legal battle: will his enterprise weather the storm, or is this the beginning of the end for one of the major players in Beverly Hills? We’re not done with this drama yet, so stay tuned.
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