Mauricio Umansky, a prominent real estate figure, has found himself entangled in a legal battle over allegedly fraudulent Paycheck Protection Program (PPP) loans received during the COVID-19 pandemic.
The 54-year-old Umansky and his real estate company, The Agency, are accused of fraudulently obtaining $3.5 million in PPP loans, which were intended to support small businesses struggling to pay their employees during the pandemic.
Umansky, who was previously married to Real Housewives of Beverly Hills star Kyle Richards, is being sued by Realtor LLC, which alleges that The Agency falsified their applications for the PPP and Coronavirus Aid, Relief, and Economic Security Act (CARES) loans.
Mauricio Umansky has found himself in some legal hot water over some allegedly fraudulent PPP loans he received during the COVID-19 pandemic
The lawsuit alleges that The Agency misrepresented their financial situation in applying for the loans, claiming that they needed the funds to pay their employees, when in reality, they had sufficient funds to do so.
Umansky – who was married to Real Housewives of Beverly Hills star Kyle Richards for 27 years until their split in July 2023 – is being sued by Realtor LLC
According to the lawsuit, The Agency’s business grew significantly during the pandemic, with sales volume increasing from $6 billion in 2019 to $11.5 billion in 2021.
Realtor LLC claims that The Agency falsely claimed that they needed the loans to pay their employees and exceeded the loan limit, and that they applied for and received full loan forgiveness, knowing they were ineligible for the loans in the first place.
The lawsuit alleges that the company falsified their applications for the Payroll Protection Plan (PPP) and the Coronavirus Aid, Relief, and Economic Security Act (CARES) loans, which they received $3,521,153
A representative for The Agency responded to the allegations, stating that the company has always operated with integrity and that the claims do not reflect the reality of their operations and financial situation at the time they filed for the PPP loans.
The representative added that The Agency intends to vigorously defend against the claims, which they believe are meritless.