Mauricio Umansky and his real estate company, The Agency, are being accused of being greedy amid a lawsuit over loans they obtained as part of the COVID-19 pandemic’s Paycheck Protection Program (PPP).
Months after Relator LLC filed a lawsuit, alleging that the 54-year-old Real Housewives of Beverly Hills star and estranged husband of Kyle Richards, 55, and his firm stole “over $3.5 million from American taxpayers and improperly used those funds,” the company is further slamming Mauricio as he attempts to have the case dismissed.
According to court documents obtained by In Touch Weekly on December 31, Relator LLC is claiming Mauricio and his team obtained funds they did not need.
“This is a case about greed during a national health emergency,” an attorney for Relator LLC wrote. “[The Defendants] stole over $3.5 million from American taxpayers and improperly used those funds.”
Although Mauricio and The Agency have denied all wrongdoing, the attorney argued that they actually failed to do so, instead claiming that their lawsuit contained “insufficient allegations” and pulling into question the way in which Relator LLC obtained the information.
“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,” the attorney continued, noting that at the time Mauricio and The Agency received $3.5 million in loans, their business was not suffering.
“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,” they stated.
Meanwhile, an attorney representing Mauricio and The Agency pointed out that they had no relationship with Relator LLC.
“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 declared. “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.”
“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,” they continued. “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 and his team also said Relator LLC’s lawsuit, which requests the court force them to pay an amount equal to “three times the damages that the United States has sustained,” in addition to other feeds, was full of “speculation and absurd assertions.”
At the time the lawsuit was first filed, a representative from The Agency offered a statement to In Touch Weekly.
“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,” they insisted. “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.”
The Real Housewives of Beverly Hills season 14 airs Tuesdays at 8/7c on Bravo.
