The estranged husband of the “Real Housewives of Beverly Hills” star got sued alongside his real estate company for deceiving the government. He allegedly obtained $3.5 million in loans meant for struggling businesses.
The court recently unsealed the lawsuit, which was initially filed under seal in July 2023—the same month Kyle Richards and Mauricio Umansky confirmed they were separated but not divorcing.
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Kyle Richards’ Estranged Husband Accused Of Choosing ‘Greed’ Amid The COVID-19 Pandemic
The unsealed court documents painted an unflattering image of Umansky, his business partner William “Billy” Rose, and their real estate company, The Agency. The complaint filed by Realtor LLC accused them of abusing a loan system for profits.
“This is a case about greed during a national health emergency,” the plaintiff alleged, claiming Umansky and Rose used The Agency to apply and receive two Payroll Protection Program (PPP) and CARES Act loans they did not need.
The complaint explained that the programs were created to prevent the termination of employees by providing loans to businesses that could not pay them because of the impacts of COVID-19.
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The PPP and CARES Act was not enacted to “bolster or preserve the profits of a business that had sufficient funds available to pay its employees,” the documents obtained by In Touch stressed, claiming businesses like Umansky’s abused the system.
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Mauricio Umansky Allegedly Lied About His Company’s State To Obtain The Loans
The suit bashed Umansky and his business partner for misrepresenting The Agency’s financial situation to make themselves eligible for the PPP and CARES Act loans. Their real estate company wasn’t in a state of distress and allegedly grew amid the pandemic.
The Agency, per the documents, had $6 billion in sales volume in 2019 but enjoyed an increase to $6.5 billion in 2020. Their sales skyrocketed to $11.2 billion in 2021. Despite this growth, the defendants:
“Falsely certified that ‘current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant’ and that they needed the loans to pay their employees, a requirement for eligibility for PPP loans.”
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The Realtor Wants Umansky Severely Punished With Massive Fines
Realtor LLC noted Umansky and the other defendants obtained $3.5 million through their deceitful conduct. They were given $2.3 million during round one of the paycheck protection program and $1.1 million in round two.
On that note, the Realtor implored the court to “enter judgment against each defendant in an amount equal to three times the damages that the United States has sustained because of Defendants’ actions.”
The cry for punishment didn’t end there, with the plaintiff pushing for “a civil penalty of not less than $12,537 and not more than $25,076 for each and every false claim as are required by law.”
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Umansky’s Company Denies The Allegations
Although Umansky and the other defendants are yet to file their legal response to the complaint, a rep for The Agency denied the allegations in a statement. They claimed the company “has always operated with the highest level of integrity in all aspects of our business.”
“Like many companies, we faced significant challenges during the COVID-19 pandemic, including layoffs and cutbacks,” the rep argued, implying The Agency needed the $3.5 million loans to support its customers and employees.
“The claims in this case do not reflect the reality of our operations and financial situation at the time we filed for our PPP loans, and we intend to vigorously defend against these meritless claims,” their statement concluded.
Kyle Richards And Mauricio Umansky Slam Divorce Rumors
Richards and Umansky confirmed their separation the same month the lawsuit was filed. On July 4, 2023, the “RHOBH” star shared their joint statement on Instagram, slamming claims about their divorce.
“In regards to the news that came out about us today… Any claims regarding us divorcing are untrue. However, yes, we have had a rough year. The most challenging one of our marriage,” the statement revealed, adding:
“But we both love and respect each other tremendously. There has been no wrongdoing on anyone’s part. Although we are in the public eye, we ask to be able to work through our issues privately.”
Kyle Richards and Mauricio Umansky’s separation came after 27 years of marriage. Will the reality TV star support her estranged beau through his latest legal drama?
