REAL Housewives of Salt Lake City prisoner Jen Shah owes her lawyer nearly $125,000 for her fraud case, as she still must pay $6.6million in restitution to her victims.
Jen, 49, is currently serving a five-and-a-half-year sentence for fraud at Federal Prison Camp Bryan in Texas after reporting to the facility in February.
GettyJen Shah owes her lawyer nearly $125K in legal fees and expenses[/caption]
YouTube/Security WeeklyPriya Chaudhry requested a New York judge allow her to drop her client[/caption]
Jen’s attorney, Priya Chaudhry, filed a Motion to Withdraw as Counsel for Defendant on March 24 because Jen “failed to pay the fees and expenses owed to the Firm.”
A New York judge responded to the lawyer’s request to drop her client by asking she “file the specific amount owed” before approving the motion.
In the court documents exclusively obtained by The U.S. Sun, Priya revealed Jen owes her a whopping $124,422.95.
The court papers read: “We represented Jennifer Shah. On March 24, 2023, my firm filed a motion to withdraw as counsel based on Ms. Shah’s unpaid fees and expenses.
“Yesterday, Your Honor ordered my firm to provide the unpaid amounts owed by Ms. Shah by today, April 6, 2023.
“Ms. Shah owes $50,000.00 in unpaid fees and $74,422.95 in unpaid expenses. Thus, the total Ms. Shah owes my firm is $124,422.95.”
A judge has yet to make an official ruling.
BROKEN PROMISE
In the lawyer’s initial request, she claimed Jen entered into a legal fee agreement with her law firm on July 12, 2021.
To date, a portion of the fee “remains outstanding,” as she allegedly owes the firm expenses related to “digital hosting of discovery with an outside vendor,” according to the motion.
The court papers continued: “The Firm has made several attempts to collect Defendant’s outstanding fees and expenses, including six times since July 2022.”
Jen allegedly “repeatedly promised to pay these outstanding amounts, and the Firm continued to provide services, relying on the written engagement with Defendant.”
On March 17, Jen was allegedly sent a letter while at FPC Bryan “notifying her that she is obligated to make payment pursuant to the Fee Agreement.”
The lawyer claimed her firm has a “satisfactory reason” for withdrawing as her counsel because Jen has “deliberately disregarded her agreement.”
The court filing also claimed the firm “has a right to assert a retaining lien against Defendant for her unpaid fees and expenses.”
The request concluded: “ChaudhryLaw PLLC respectfully requests this Court enter an order granting ChaudhryLaw leave to withdraw as counsel of record for Defendant and such other and further relief this Court deems just and proper.”
A rep for Jen did not respond to The U.S. Sun’s request for comment at the time.
Priya has also not responded to The U.S. Sun’s request for comment.
PAY UP
Jen still has not paid her $6,695,466 in restitution for the victims of her telemarking scheme, according to court papers.
The U.S. Sun previously reported Shed Media, Inc, the production company for RHOSLC, will pay the Clerk of Court Jen’s wages from the show, according to the Government’s request.
The income will go toward the $6,695,466 in restitution.
The Notice of Settlement Order read: “Namely 25 percent of her disposable earnings from the sentencing date (January 10, 2023) through her surrender date (February 17, 2023).
“Shed Media, INC shall release to Shah 75 percent of earnings withheld between January 10 through February 17, 2023.
“During Shah’s term of imprisonment (February 18, 2023 until the scheduled release date of August 30, 2028), Shed Media, Inc. shall pay 100% of each periodic payment due or owing to Shah to the Clerk of Court.
“Upon release from custody, when earnings or income may be required necessary and reasonable living expenses, Shed Media, Inc. shall pay 15% of gross monthly income or 25% of disposable earnings, whichever is greater.”
Shed Media, Inc revealed in court papers that they owed Jen $34,500, though that amount was lowered to $20,000 after taxes and costs were deducted, RadarOnline.com reported.
Cameo, where celebrities make personalized videos for fans, NBC Universal Media, Inc and Warner Bros Entertainment, Inc were also hit with legal notices by the government, according to Radar.
But the companies claimed they did not have “earnings, income, or other property belonging to or due to Shah in its possession, custody, or control.”
The U.S. Sun can also reveal from the court filing that Jen “has neither requested a hearing nor objected to any garnishee’s answer.”
The court papers read: “The victims of Shah’s crime have the right to full and timely restitution as provided in law, and the law provides that the United States may use all available and reasonable means to collect restitution.”
The settlement order has been approved by the judge.
EARLY RELEASE
But Jen has received good news amid her financial strife, as her release date was been reduced, according to the Bureau of Federal Prisons.
She was initially sentenced to six-and-a-half years in prison, but her release date has changed to August 30, 2028, a full year less than her initial release.
A rep for Jen told People in a recent statement: “I have spoken with my client Jen Shah over the phone this week — she is doing well and remains committed towards making her victims whole.
“She has initiated her payments towards restitution, and we hope to have her home as soon as possible so that she may resume life with her family and work, putting this chapter of her life behind her.”
JEN’S ARREST
Jen was arrested in March 2021 and charged with conspiracy to commit wire fraud in connection with telemarketing and conspiracy to commit money laundering.
The Bravo star was accused of running a telemarketing scam that targeted hundreds of elderly people across the US alongside several accomplices.
Jen and her assistant Stuart Smith had a “Business Opportunity Scheme” where they “sold alleged services” to help make the alleged victim’s companies more efficient or profitable.
According to court papers, this included “tax preparations or website design services.”
The victims were “elderly and did not own a computer.”
Jennifer and Stuart made efforts to conceal their roles in the Business Opportunity Scheme.
In one example, they used encrypted messaging apps to communicate with others involved in this scheme.
The scheme ran from 2012 to March 2021, according to the indictment.
The star had previously maintained her innocence, especially while discussing the case on RHOSLC.
She placed much of the blame on her former assistant, saying at one time: “I got played by Stuart Smith. I would not be in this thing at all if it wasn’t for Stuart.”
She then entered an initial not-guilty plea in April 2021.
Jen said in a statement to Page Six: “I’m fighting this. I am innocent, and I will fight for every person out there that can’t fight for themselves because they don’t have the resources or the means, so they don’t fight.”
She went on to add: “I will fight because No. 1, I’m innocent and No. 2, I’m going to f**king represent every other person out there that can’t fight and hasn’t been able to.”
GUILTY PLEA
But the reality TV star entered a guilty plea ahead of her trial.
Priya told People at the time: “Jen pled guilty because she wants to pay her debt to society and put this ordeal behind her and her family.”
She added: “Ms. Shah is a good woman who crossed a line. She accepts full responsibility for her actions and deeply apologizes to all who have been harmed.”
Stuart pleaded guilty and is awaiting sentencing.
SENTENCING
Jen was calm when her sentence was read out, according to The U.S. Sun’s reporter at the court hearing on January 6.
Her loved ones – including her husband Sharrieff and their two sons Sharrieff Jr. and Omar – had their heads down and were seen wiping away tears.
Jen sobbed as she told the court: “The elderly command the most respect. I am the oldest of six. I was raised with respect, fulfillment of obligations, generosity and humility, and loyalty. I have gone against those values.
“I am deeply sorry. I want to apologize to the victims and their families. I will work hard to gain the funds to pay them restitution. I am sincerely remorseful. I promise to repay every cent.”
Jen went on: “I struggled to accept responsibility because I delusionally thought I did nothing wrong. I believed I was manipulated. Those are lies I manifested.
“After therapy, counseling, and medication, I can see the situation. I wish I did better. I am sorry. I found solace in volunteer work with women’s rights and anti-racism.
“I’m sorry to my friends and family for the shame and embarrassment, especially my husband and sons.”
Jen concluded: “I accept the consequences. I will never return there again. I will never break laws. I will change and evolve. Reading this statement will help me heal my heart that I shattered.”
APJen owes 6.6million in restitution to her victims[/caption]
Federal Bureau of PrisonsShe is currently serving her time at FPC Bryan in Texas[/caption]
GettyShe will serve 5.5 years in prison[/caption]
