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OTRC: Teresa Giudice, husband Joe of 'Real Housewives' plead guilty to fraud

Teresa Giudice and husband and 'Real Housewives of New Jersey' co-star Giuseppe 'Joe' Giudice appear at the Pangaea nightclub at the Hard Rock Hotel and Casino in Hollywood, Florida on Aug. 11, 2013. (Paul Emmans / startraksphoto.com)

Two stars of "The Real Housewives of New Jersey" have pleaded guilty to several federal fraud charges that carry the threat of jail time.

Teresa and Giuseppe "Joe" Giudice made their pleas in a New Jersey court on Tuesday, March 4, the Associated Press reported. They each pleaded guilty to several counts, including bankruptcy fraud, conspiracy to commit mail fraud and wire fraud, and failing to pay taxes. The pair had pleaded not guilty in August. The two are set to be sentenced on July 8. Joe faces a potential sentence of 37 to 46 months in jail, while Teresa Giudice could get 21 to 27 months, the news wire said.

In July 2013, the couple was charged with conspiracy to commit mail and wire fraud, bank fraud, making false statements on loan applications and bankruptcy fraud. They were accused of exaggerating their income and applying for loans before "the Real Housewives of New Jersey" debuted in 2009, the Associated Press had reported.

Prosecutors say they then hid their funds in a 2009 bankruptcy filing and also submitted fraudulent mortgage and loan applications and fabricated tax returns and W2 forms. They also say Joe did not file federal tax returns from 2004 to 2008. In their bankruptcy filing, the Giudices claimed they owed $11 million, including $2.2 million in mortgages, $13,000 to Neiman Marcus and Nordstrom, and nearly $12,000 to a fertility clinic.

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