Real Housewives of Beverly Hills star Kyle Richards’ husband Mauricio Umansky and his real estate company were accused of stealing “over $3.5 million from American taxpayers and improperly used those funds” as part of the lawsuit over PPP loans, In Touch can exclusively report.
According to court documents obtained by In Touch, the company Relator LLC fired back at Mauricio, 54, and his company The Agency’s attempt to dismiss the federal lawsuit filed over payroll protection loans (PPP) obtained during the pandemic.
As In Touch first reported, Relator LLC claimed that Mauricio and his business partners obtained millions in PPP loans that The Agency did not need.
A lawyer for Relator LLC wrote, “This is a case about greed during a national health emergency.”
Mauricio and The Agency denied all allegations of wrongdoing. Now, Relator LLC fired back at Mauricio and demanded the case move forward.
The company stated the defendants, “stole over $3.5 million from American taxpayers and improperly used those funds.”
A lawyer for Relator LLC argued, “Defendants do not argue that they engaged in no wrongdoing. Instead, Defendants claim that the [first amended complaint] contains insufficient allegations – not on the facts alleged – but only on how [Relator LLC] came to realize the facts. Defendants’ entire motion is based not on the assertion that Plaintiff is wrong, but rather that [Relator LLC] does not have direct knowledge of the fraud.”
Relator argued that Mauricio and The Agency had no need for the loans because business was booming for the real estate company.
The lawyer for Relator LLC stated, “Given that Holdco’s subsidiaries Umro and The Agency had booming business of $6 billion of sales in 2020 and $6.5 billion in sales in 2021, Defendants’ threshold for economic necessity is a high bar that they cannot overcome on a motion to dismiss.”
As In Touch first reported, a lawyer for Mauricio and The Agency argued that Relator LLC had no actual relationship with Mauricio or his business partners.
A lawyer for Mauricio and his company said, “Relator makes the specious claim that Defendants falsified information and certifications on its applications for Paycheck Protection Program (‘PPP’) loans in 2020 and 2021 through the use of guesswork, speculation, and contrived facts.”
The lawyer continued, “The fact that Relator’s complaint is an artificial account of facts comes as no surprise. Relator is in no way connected to Defendants: Relator was not previously employed by Defendants nor is it otherwise affiliated with Defendants. Relator therefore cannot ascertain or know firsthand the facts surrounding The Agency’s application for PPP loans in the shadow of the COVID-19 global pandemic.”
The lawyer added, “Based on publicly available gross sales figures and PPP loan information, Relator makes conclusory statements about The Agency’s financial position that are illogical and unfounded. Relator improperly equates gross sales figures with profits and liquidity, speculates about what percentage of real estate sales The Agency would have received, and—without any information whatsoever—asserts that The Agency falsified payroll numbers.”
Mauricio’s legal team said the lawsuit was full of “speculation and absurd assertions.” The reality star demanded the case be dismissed. Relator asked the court to enter judgment against each defendant in an amount equal to “three times the damages that the United States has sustained because of Defendants’ actions, plus a civil penalty of not less than $12,537 and not more than $25,076 for each and every false claim as are required by law.”
A rep for The Agency previously told In Touch at the time the lawsuit was filed, “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.”
Mauricio and Kyle, 55, split in July 2023, the same month the lawsuit was brought.
