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Why Are Mauricio Umansky And His Real Estate Company Getting Sued? Lawsuit Explored
Mauricio Umansky faces lawsuit for fraud along with his real estate company allegedly misrepresenting their financial need.
Mauricio Umansky is embroiled in a scandal involving the alleged swindling of $3.5 million in supposed loans intended for individuals affected by the COVID-19 pandemic. He is best known for his 27-year marriage to Real Housewives of Beverly Hills star Kyle Richards, which ended in separation in 2023.
New court filings obtained by Us Weekly detail the lawsuit against Umansky, 54, and his real estate company, The Agency, LLC. Umansky is accused of applying for and receiving two loans totaling $3,521,153.00 through the Payroll Protection Program (PPP) and the CARES Act. These loans were intended to provide financial support to businesses with payrolls that could not afford to pay their employees due to the COVID-19 pandemic.
According to In Touch, the lawsuit claims that the certification made by Umansky’s company was fraudulent. One of the stipulations indicated that any loan approval under the program could not exceed 2.5 months of payroll for the business, capped at $100,000 annually per employee.
Realtor LLC also notes that The Agency was not supposed to be significantly affected by the pandemic, as most of its high-return customers were millionaires and billionaires purchasing real estate, rather than ordinary consumers impacted by the pandemic.
The Agency is reported to have performed well during the pandemic, earning revenues of $6.5 billion in 2020 and $11.2 billion in 2021. The lawsuit emphasizes that, with such financial success, the company had enough surplus to pay its employees and avoid defaulting, yet still chose to take out loans. The suit is seeking triple the amount that it alleges has been misappropriated.
A representative for The Agency spoke to Us Weekly and stated, "Our focus has always been, 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."
Mauricio Umansky has three daughters, Alexia aged 28, Sophia aged 24 and 16-year-old Portia with The Real Housewives of Beverly Hills star Kyle Richards. Furthermore, he is also the stepdad of Richards’ daughter Farrah who is 35 years old. Umansky was featured in his own Netflix series titled Buying Beverly Hills, which followed him working at The Agency. Earlier this year, however, after two seasons, the show was canceled.
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