The Agency and its founder, Mauricio Umansky, have been accused of stealing $3.5 million from American taxpayers. In Touch reported funds from PPP loans were used “improperly.”
Back in August, the estranged husband of Real Housewives of Beverly Hills star Kyle Richards denied the “meritless claim” of misusing government assistance.
The plaintiff, Relator LLC, fired back at Mauricio and The Agency’s attempt to “dismiss the federal lawsuit filed over payroll protection loans (PPP) obtained during the pandemic.”
In other words, Mau asked the case to get dropped. But, the court said, ‘No.’
The case against Mau and The Agency:
Mauricio and The Agency applied for and received two Payroll Protection Program (PPP) and CARES Act loans in the total amount of $3,521,153.00.
Relator LLC claimed these funds weren’t needed. “This is a case about greed during a national health emergency.”
“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. Rather, that [Relator LLC] does not have direct knowledge of the fraud.”
In layman’s terms, Mauricio’s lawyers are arguing there is no proof of of fraud, not that there was no fraud committed.
Relator LLC lawyers argued that “Mauricio and The Agency had no need for the loans. Business was booming for the real estate company.”
Mau’s lawyers’ response, in detail:
The plaintiff, “Relator [LLC] makes the specious claim that Defendants [Mau and The Agency] falsified information and certifications on its applications for Paycheck Protection Program (‘PPP’) loans in 2020 and 2021.” This was performed “through the use of guesswork, speculation, and contrived facts.”
Mauricio’s 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.” The plaintiff was never “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 COVID-19 global pandemic.”
Basically, Mauricio’s lawyers argue since Relator has no connections to The Agency, they don’t know what they’re talking about. His legal team said the lawsuit was full of “speculation and absurd assertions.”
Stay tuned for updates about this developing story.
