REALITY TVMauricio Umansky Sued for $3.5 Million in Alleged Fraudulent Loans Amid Separation From Kyle Richards
Mauricio Umansky has been sued for 3.5 million.
While Real Housewives of Beverly Hills star Kyle Richards’ ex Maurcio Umansky has seemed in a state of bliss with new girlfriend Nikita Khan, he just got hit with some bad news — he is being sued for allegedly getting $3.5 million in fraudulent pandemic relief loans.
Mauricio Umansky has been dating Nikita Khan.
In Touch obtained court documents claiming Realtor LLC. is going after Umansky, his business partner William “Billy” Rose, and their real estate firm The Agency for allegedly violating the federal False Claims Act.
While the lawsuit was filed in July 2023, it was initially sealed — so it was kept out of the public arena— it recently became unsealed.
In the documents, it claimed they applied and received two Payroll Protection Program and CARES Act loans in the total amount of $3,521,153.
The lawsuit documents explained these “programs were enacted for the sole purpose of preventing termination of employees by providing loans to businesses that were unable to pay them due to the impact of COVID-19, not to bolster or preserve the profits of a business that had sufficient funds available to pay its employees.”
Mauricio Umansky and Kyle Richards were married for 27 years.
Noting many “large, profitable businesses obtained their loans by misrepresenting their financial situations,” the suit went on to explain that “their profits would have been minimally impacted if at all, because their revenue was based on a percentage of real estate transactions, typically between millionaires and billionaires, not consumers who were unable to buy goods or dine out because of the COVID-19 restrictions.”
The lawsuit also shockingly divulged that, amid them taking these loans during the pandemic, The Agency’s business “grew massively,” going from $6 billion in sales in 2019 to $6.5 billion in 2020. In 2021, this number grew even more, with The Agency doing $11.2 billion in sales.
The documents went on to allege the three named parties of falsely certifying “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.”
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Mauricio Umansky and Kyle Richards separated in 2023.
They also shared the “amounts they applied for and received exceeded the loan limit.”
Aside from actually getting the loans, the lawsuit further alleges “loan forgiveness” was applied for and “received in full.”
While the lawsuit goes on to claim these loans were “not necessary” to support their business, it went on to specifically call out Umansky and Rose. for “fraud to protect profits.”
They noted it’s “all the more egregious because [Mauricio] and [Billy], who co-own The Agency, are already extremely wealthy individuals who each own tens of millions of dollars of real estate.”
Mauricio Umansky has not commented on the lawsuit.
A representative for The Agency gave the following statement to In Touch about the lawsuit: “While we are unable to comment on ongoing litigation, we want to emphasize that The Agency 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. Our focus has always been, and especially during that challenging period, on delivering exceptional service to our customers and supporting our 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.”
As of yet, neither Umansky nor Rose have directly responded to the report.
