As previously reported, Real Housewives of Salt Lake City star Jen Shah and her assistant, Stuart Smith, were arrested for their alleged roles in a telemarketing scheme that defrauded hundreds of victims throughout the United States on Tuesday, March 30.
However, on Friday, April 2, Jen pleaded not guilty to one count of conspiracy to commit wire fraud in connection with telemarketing and one count of conspiracy to commit money laundering. Her trial is set to begin on October 18 and, according to federal criminal defense lawyer Brandon Sample, the Bravo reality star is facing some serious consequences if she’s found guilty.
“She faces a statutory maximum sentence of 30 years on the charge of conspiracy to commit wire fraud. She also faces another 20 years on the money laundering charge, Sample, who specializes in federal white collar crime cases told HollywoodLife.
However, he added, it’s likely Jen’s sentence will be much shorter, if she is found guilty. “The Court has the power to run the sentences consecutive; however, it rarely happens. I expect that if the government is able to determine her guilt, the sentence in the case would be most likely 5 – 10 years, but that is just a guess,” he explained.
But criminal defense attorney Sharen Ghatan thinks there's a chance that Shah could avoid jail time even if she’s found guilty. “Her attorneys will likely emphasize her clean criminal record, assuming she has that, and will highlight a lack of “crimes of moral turpitude,” the founding partner of California Legal Counsel told HollywoodLife.
“It’s especially concerning that there are other defendants,” the attorney continued. “It’s highly likely that someone will rat someone else out. [Jen] Shah should use any inside knowledge to better her situation and bargain down to a lesser offense or best yet, a dismissal, in exchange for information about a ‘bigger fish.'”
Aside from jail time, Jen is also facing the loss of her assets and major fines. “The Government will likely seek to freeze and confiscate assets that derive from her alleged criminal activity,” Brandon Sample explained. “If she is found guilty, these assets could be sold by the Government to help make restitution to victims in the case.”
And, if Jen is found guilty, she will be on the hook for up to $1.5 million dollars in fines. “The wire fraud conspiracy charge carries a $1 million fine. The money laundering charge carries a max $500,000 fine,” Brandon Sample added.
Meanwhile, defense attorney Sharen Ghatan emphasized Jen is still innocent until proven guilty. “The prosecutor needs to prove that she’s guilty. Shah is presumed innocent.”
The news comes after Jen Shah and her assistant, Stuart Smith, were arrested for their alleged roles in a telemarketing scheme that defrauded hundreds of victims throughout the United States on Tuesday, March 30.
Shah and Smith were booked in Salt Lake City on conspiracy to commit wire fraud in connection with telemarketing and conspiracy to commit money laundering charges. They each face a maximum sentence of 30 years for the wire fraud charges and an additional 20 years for the money laundering charges.
“Jennifer Shah, who portrays herself as a wealthy and successful businessperson on ‘reality’ television, and Stuart Smith, who is portrayed as Shah’s ‘first assistant,’ allegedly generated and sold ‘lead lists’ of innocent individuals for other members of their scheme to repeatedly scam,” Manhattan U.S. Attorney Audrey Strauss said in a press release on Tuesday, reports the outlet. “In actual reality and as alleged, the so-called business opportunities pushed on the victims by Shah, Smith, and their co-conspirators were just fraudulent schemes, motivated by greed, to steal victims’ money. Now, these defendants face time in prison for their alleged crimes.”
“Shah and Smith flaunted their lavish lifestyle to the public as a symbol of their ‘success,’” HSI Special Agent-in-Charge Peter C. Fitzhugh added. “In reality, they allegedly built their opulent lifestyle at the expense of vulnerable, often elderly, working-class people. As alleged, disturbingly, Shah and Smith objectified their very real human victims as ‘leads’ to be bought and sold, offering their personal information for sale to other members of their fraud ring. Working with our partners at the NYPD and the United States Attorney’s Office, SDNY, and with the assistance of HSI Salt Lake City, HSI New York worked to ensure that Shah and Smith will answer for their alleged crimes. As a result, their new reality may very well turn out differently than they expected.”
According to Us Weekly, New York Police Department Commissioner Dermot Shea went on to thank the “hard work” of the NYPD for the case.
“These individuals allegedly targeted and defrauded hundreds of victims but thanks to the hard work of the NYPD and our law enforcement partners, this illegal scheme was brought to an end,” Shea said on Tuesday. “I congratulate the NYPD detectives, Homeland Security Investigations, and the U.S. Attorney for the Southern District of New York for their hard work in bringing these persons to justice.”
On Friday, April 2, Jen pleaded not guilty to one count of conspiracy to commit wire fraud in connection with telemarketing and one count of conspiracy to commit money laundering.
Along with her local Utah lawyer, Clayton Simms, Jen hired Henry Asbill, a known white collar crimes defense attorney who works out of Washington, D.C. Shah called into the court hearing via Zoom two days after her initial hearing was postponed because too many people dialed into Wednesday’s virtual arraignment.
Federal prosecutors asked to impose a million-dollar recognizance bond for Shah, which will be secured by $250,000 in cash or property and requires a signature from two “responsible persons.” According to Asbill, however, Shah is “renting a home right now” and doesn’t have any property in her name, reports Us Weekly.
Production on season 2 is currently underway, with Shah expected to return alongside Meredith Marks, Whitney Rose, Heather Gay, Lisa Barlow, and Mary Cosby.
Photo Credit: Bravo Media/NBCUniversal; Shutterstock
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