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Rachel Returns Hush Money

Threatens Gloria Allred

7/18/2011 12:30 PM PDT BY TMZ STAFF

TMZ has learned ... Rachel Uchitel has given Tiger Woods back most of the settlement money he paid her ... and now Rachel is preparing to sue Gloria Allred, the lawyer who struck the deal, allegedly because Gloria sold her out for money.

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As TMZ reported, Gloria negotiated a $10 million settlement for Rachel ... just hours before Rachel was going to hold a tell-all news conference about Tiger Woods.  The settlement included a confidentiality agreement, which prohibited Rachel from talking about Tiger.

We've learned the agreement stated ... if Rachel violated the confidentiality clause ... she would not only have to return the money she received but Tiger could sue her for damages as well.

Sources tell TMZ ... several months ago Tiger's lawyer, Jay Lavely, contacted Gloria and said they were going after Rachel because they believed she violated the confidentiality agreement by allegedly speaking with TMZ and going on "Celebrity Rehab" to treat her "addiction to love" -- though she never talked specifically about Tiger on the show.

We're told Rachel felt strongly she had not violated the agreement, but Gloria allegedly convinced her she would lose if push came to shove, so Gloria struck a deal with Lavely -- that Rachel would return the lion's share of the settlement money.

But our sources say ... what has Rachel fuming is that Gloria allegedly made a deal with Jay Lavely -- that Gloria would still get all of her attorney's fees. Rachel believes Gloria sold her out ... allegedly making a deal with Tiger's lawyer to strong-arm Rachel into giving the money back and in return Gloria would get her fee -- a fee Gloria would not have received if Rachel went to arbitration and lost.

We're told Rachel went along with the deal, but as time went on she felt she had gotten screwed, and then hired a malpractice lawyer who has made a demand on Gloria to either pay Rachel what she gave back or get sued.

Sources tell TMZ ... Rachel's lawyer has given Gloria a deadline, and if Gloria doesn't ante up ... a legal malpractice lawsuit will be filed.

We contacted Gloria, who said, "No comment." Ditto Rachel, who was also mum.

UPDATE: TMZ asked Gloria if her law partner, Nate Goldberg, was the lawyer who negotiated Rachel's big give-back to Tiger. This time she said she couldn't answer because of "attorney-client privilege."

UPDATE:  Gloria just told TMZ, "Our law firm no longer represents Ms. Uchitel and we have no comment on this story at this time.  However, we are confident that we have always acted appropriately and in her best interests."

UPDATE:  Gloria just gave TMZ another statement:  "I was not involved in any way in the allegations set forth in the TMZ story which appears today and which references me.  I have not had a conversation with or communicated with Jay Lavely about any client in more than a year.  I am reserving all of my legal rights and remedies against anyone who defames me."


234 COMMENTS

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151.

Puckett    

Jim 6 minutes ago
Did you really think Gloria Alred was concerned about you or her publicity and money? Geesh, you were pretty stupid.

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If she wasn't concerned about Rachel's best interests during the negotiations it's malpractice. Lawyer's don't work for themselves, they work for their clients.

Even if you're going to some disgusting dirtbag like Gloria Allred for representation, she's a licensed practicing attorney and you have the right to expect her to work for your best interests, not her at your expense.

Sue Rachel, sue! I want to see the inner workings of Gloria's law firm publicly do***ented in court! Of course Gloria doesn't, so i think she will definitely reach a confidential settlement with Rachel and her new attorney. lol

Basically Gloria is getting nailed at her own game, which is extorting victims to keep matters private and off the record, or she'll sue them in court and everyone will know their dirty secrets.

I'm 100% certain Gloria doesn't want the inner workings of her extortion racket, er excuse me, law firm made public. And the hunters become the hunted... :-)

1143 days ago
152.

Cujeaux    

Haha! I knew this would happen. Anyone who watched CR4 could see what Allb*tch was up to, calling Rachel while she's filming, telling her to STFU and leave, knowing that Rachel couldn't even if she wanted to.

Rachel still doesn't know WTH she's doing. The point isn't really that Gloria struck the deal to get paid, it's that she lied to Rachel about the violations to begin with, claiming they couldn't win. Why would Rachel take her word for that without consulting another attorney? Doesn't she know Gloria avoids trials like the plague? She didn't say anything about Tiger on the show, as much as she wanted to, so where's the violation? That's what Allbitch should be required to prove.

Her problem is her fame whoring always overrides her common sense and it costs her millions. Most likely all of her million dollar homes bought with Tiger money are going on the block. Whatever happened to her lame PI show? Oh, that's right - people F'ing hate her and it bit the dust, just like everything else she touches.

1143 days ago
153.

ColdasHell34    

Rachel don't listen to them they are all jealous pieces of crap

1143 days ago
154.

Raven    

1st.....RU looks older & more used up than GA.
2nd.....both are very,um,man-ish looking
3rd.....did I read that right? GA says she never talked to TMZ?Look out Harvey,sounds like she's getting ready to go after you to pay off RU!
4th.....I'm not to be confused with the newest 'raven' here,hehe

1143 days ago
155.

O-Dog2GX    

Greed got 'em!!!

1143 days ago
156.

nate    

Hilarious. Two of the more disgusting waste of human beings going after each other. Priceless.

1143 days ago
157.

ed    

gloria allred admits to being sexually molested by a man when she was young. now she is hell bent on prosecuting men for anything sexual related. doesnt that seem a little wrong? conflict of interest? should we put a cop, whose family was murdered by a black gang, on patrol in compton? the woman is messed up in her head, she has no place in the legal system.

1143 days ago
158.

Dii    

HA HA HA HA HA HA HA HA HA HA -- Frontier Ho Justice!

1143 days ago
159.

Bob    

I'm surprised Gloria hasn't called a press conference to announce she has no comment.

1143 days ago
160.

Sammy    

She's returning "most" of the money? How much has this ho spent anyway?

Good luck sueing Gloria Allred dummy. That lady will have you tied in in court for the next twenty years. You will need 10 million dollars just to pay the attorny fees trying to fight that shark.

I would never in 10 million years consider doing something as utterly stupid as thinking I could sue Gloria Allred and actually come out on the winning end.

Just goes to show you this ho has shiat for brains.

1143 days ago
161.

en Todo Momento!!    

dang. is she for real??? that's like biting a shark. better start dusting off some bamboo mat in some far away shanty town, cuz glo-glo is gonna tear her as.s up!!! yikes!

1143 days ago
162.

The Neko Nation    

Karma Rachel you silly untalented whore. You got taken by the biggest s***bag on the face of this earth. Gloria Allred needs to be put down! She is the epitome of human garbage. Nothing more than an ambulance, attention whore, and human leach of a sub human.

1143 days ago
163.

mildly insane    

Disturbed 13 hours ago

Poor whore...
--------------------------
which one

1143 days ago
164.

Miranda    

KARMA! Ain't it a B - - - h!! First of all, she coudl NOT have returned ALL of the money because this low-life slut bought a 2 MILLION dollar condo in New York..Considering she does NOT work it is OBVIOUS it came from Tiger's money..She may have returned SOME of it..but not most. She didn't even deserve ONE DIME. She slept with him a few times...she did blackmail and extort him. Let her get a J.O.B. and WORK like all of teh rest of us do...But once again..it IS sweet justice seeing just how quickly her KARMA came rolling around. I NEVER thought I would live to ever say THIS...BUT..I am THRILLED that she was screwed by GLORIA!

1143 days ago
165.

Stu    

**** VS ****. It's greedy, back stabbing, free-loading **** versus ambulance chasing, "I-never-saw-a-camera-that-I-didn't-like" greedy lawyer. Let them eat each other alive!

1142 days ago
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