Heather Dubrow is facing her biggest financial scandal since joining the Real Housewives of Orange County as sources exclusively say she is suspected of intentionally underreporting taxes on the sale of her lavish Newport Beach mansion
A federal audit found more than $800,000 in discrepancies between the amount Heather reported to the IRS and the actual documents obtained from her real estate agent and intermediary bank
A source familiar with the investigation told us that the discrepancy could be more than just a mistake, but rather a sign of deliberate circumvention
The unreported income could include hidden commissions from third parties who paid for the property to be promoted on television, staging fees from undisclosed sponsors, or off-the-books income that was funneled through the family business Dubrow Enterprises
The $55 million Newport Beach mansion was reportedly used by Heather and Terry as part of a RHOC branding as well as real estate and medical deals
Meanwhile, an internal memo from Bravo's legal department leaked earlier in April raised concerns about the financial disclosure standards of some cast members, and Heather was the only name flagged in red
Heather Dubrow's side responded with a brief statement We always operate with transparency and compliance with the law All tax-related issues will be handled by a team of legal experts
However, experts warn that if discovered to have intentionally defrauded the $800,000, it could result in hefty fines or even criminal prosecution depending on the severity and likelihood of repeat behavior
It's worth noting that this isn't the first time Heather has been suspected of manipulating financial information Fans have questioned the real reason behind her sudden decision to sell her home and move to Los Angeles amid rumors that she was negotiating a new series with the streaming platform
Currently Bravo is reportedly pausing filming of Heather’s solo scenes until the legal issues are cleared up
Once a symbol of pure wealth, Heather Dubrow is now facing the question of whether she can continue to maintain her “champs queen” image or become the next Housewives star to fall by the numbers
