Jen Shah, a member of the Real Housewives of Salt Lake City, has admitted guilt to federal allegations that she orchestrated a $5 million telemarketing fraud that preyed on hundreds of elderly individuals.
The actress, 48, entered a plea of guilty to a charge of conspiring to commit wire fraud, and the US attorney dismissed a second charge of conspiring to commit money laundering.
Shah will only serve a maximum of 14 years in jail under the terms of her plea agreement, according to NBC Connecticut. The US attorney’s office claims Shah faces the maximum punishment of 30 years in prison.
The reality star also consented to lose $6.5 million and make restitution payments of up to $9.5 million as part of her guilty plea.
The reality star addressed the court, saying that she was “very sorry” for the “many individuals” who had been hurt and that she “knew it was wrong.”
Shah acknowledged that she “agreed with others to perpetrate wire fraud” and “knowing it deceived” victims, more than ten of whom were above the age of 55.
Shah continued, saying that the product had been “misrepresented” in terms of the service’s worth and that it “had little to no value.”
Shah said “Yes, your honor” when asked by US District Judge Stein if she knew what she was doing was wrong and unlawful.
Prior to entering a guilty plea, the celebrity faced a trial in Manhattan that could have resulted in a sentence of up to 50 years in prison. The trial was set to start on July 18.
According to documents viewed by Page Six, Shah is suspected of scamming hundreds of senior citizens nationwide through a widespread telemarketing scheme.
Along with her aide Stuart Smith, who has also entered a guilty plea, she was charged in March of last year.
To the allegations of conspiring to commit wire fraud and conspiring to commit money laundering through telemarketing, the Bravo star at first entered a plea of not guilty.
Shah’s lawyer has been approached by DailyMail.com for a response.
Shah broke down in tears when announcing that she was “fighting” the allegations during the reunion event in March of this year.
She declared, “I am innocent.” I will fight this on behalf of every person who chooses not to fight because they lack the resources or the ability to do so.
“I will fight because I am innocent first and foremost and because I am going to f***ing represent everyone else out there who can’t fight and hasn’t been able to,” the fighter declared.
Jennifer Shah was a significant player in a national conspiracy that preyed on elderly and vulnerable victims, according to U.S. Attorney Damian Williams.
These victims were misled into believing they would have financial security, but Shah and her accomplices cheated them out of their savings, leaving them with little to show for it.
“This Office is committed to exposing these schemes in all their forms.”
Shah was previously accused by the NYPD of having “hundreds” of victims, and the alleged scam is said to have started in 2012 and lasted for at least nine years.
Shah allegedly orchestrated the intricate plan to create lists of possible victims, the majority of whom were above 55 years old.
She is accused of selling those leads to telemarketing firms, who would then attempt to upsell the victims on business services.
According to court filings, Shah would subsequently get a portion of the false income that the telemarketers produced.
She filed a motion last month to bar the prosecution from utilizing Real Housewives of Salt Lake City footage during her fraud trial.
The 48-year-old television personality said she does not want “any clips from the RHOSLC” used as testimony in court.
In court filings obtained by Page Six, her defense asserts that the tape is “extremely manipulated and sculpted through post-production” and “does not have any of the indicia of credibility.”
Before making this unexpected U-turn today, Shah even released “not guilty” merch in advance of the approaching fraud trial.
She advertised “#FreeJenShah” t-shirts and had several t-shirts with her face printed on them ever since she was taken into custody by federal agents.
On November 28, Shah is scheduled to receive a sentence for her actions.