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"HOUSEWIVES" TAYLOR & HUBBY

ACCUSED OF

INVESTMENT SCAM

7/29/2011 5:20 PM PDT BY TMZ STAFF

0729_russell_taylor_armstrong_ex_3
"Real Housewives of Beverly Hills" star Taylor Armstrong and her soon-to-be ex-husband are now co-defendants in a lawsuit accusing them of shady business dealings.

Two weeks after Taylor filed to divorce Russell Armstrong ... they're both being sued over allegedly misleading investors in a company called NuWay Digital Systems, Inc. (NDS).

Russell -- a venture capitalist -- was CEO of NDS -- which held interest in another company called MyMedicalRecords.com (MMR).

In the lawsuit, MMR claims Russell collected more than a million dollars by selling off NDS shares to investors who were told they were getting a piece of MMR.

The suit claims Taylor and Russell  "successfully and secretly" funneled money away from MMR and into their own pockets -- allegedly using the money to invest in a schmancy restaurant with Eva Longoria ... and to redecorate their mansion.

MMR and the Armstrongs reached a settlement over the whole mess ... and the lawsuit claims they have breached that agreement.

MMR wants $1.5 million to make things right.

UPDATE: Russell's attorney Ronald Richards claims MMR is struggling economically and describes the lawsuit as "groundless" and a "shakedown."


41 COMMENTS

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1.

soupy340    

I knew that shady mother'fer would be in trouble with somthing soon enough!! He was so controlling and so shady right from the jump!!!! I think they spent all the money on the "Joker's" plastic face..Taylor has the scariest face. I would hate to see her in a dark alley! Doesnt anyone tell these ladies to STOP THE PLASTIC SURGERY!!! IT LOOKS FRIGGIN AWFUL!!!! SERIOUSLY STOP GIRLS, U LOOK REALLY BAD!

1181 days ago
2.

Matt    

He is obviously a crook, just look at him. He looks like a younger version of **** Cheney

1181 days ago
3.

Scotty    

Wouldn't put it past Taylor, she's deep rooted poor white trash!

1181 days ago
4.

JaundicedEye    

Orange County, CA is full of punks like these. The phony rich motivated solely by materialism and having more than their neighbor.

1181 days ago
5.

Stephanie    

You know, I've been in their house. Nice yes, but mansion.... Not even close.

1181 days ago
6.

Kathryn    

She is one FUGLY woman. The worst "trout lips" I have EVER seen. Seriously.

1181 days ago
7.

tina    

1/2 that money is probably in her plastic sugery

1181 days ago
8.

Caroline    

Everything about these two is as fake as her botoxed face and blown up lips.

1181 days ago
9.

tina    

"Trout lips", she looks like a big mouth bass !!!!!!!!!

1181 days ago
10.

Superman    

This is the real reason that she's divorcing him. She's gonna try to say that it was all his doing. And she had no idea. He was an abusive husband. She's just another victim. blah blah blah

1181 days ago
11.

Sandra     

What a pair of losers!!

1181 days ago
12.

molasses    

hmmmm me smells a rat. research who owns mmr, kira reed who married bob lorsch. who's friends with hollywood due to mula. someone thinks these old timers are all tanking... kira is an old soft porn star. taylor wants to be a soft porn star. this is all probably for publicity.

1181 days ago
13.

migirl70    

Idiots. I hope they both go to the slammer for a long ass time! Maybe they'll be there with Teresa and Joe guidice...

1181 days ago
14.

Jamishaid    

Lordy bring me the smelling sauces! Just when I could rock in my chair all a happy this fine mare leaves her donkey huzband Russell this shiz comes out! Lordy me! He looks evil and mean poor Taylor he was so controlling on that tube show he is a shady sucker! Taylor sweetness you must keep hiz donkey arse far away from your beautiful mareness! Lordy! Dayum! Dayum! Dayum he is a real piece of work! Whats a coming out next?? Lordy bless that sweet Taylor she seems so sweet and does nice things for many peeoples Luves to Taylor!

1181 days ago
15.

soulflower    

Russell always seemed shady with his vague job description,strange hours, no indication of any intelligence yet living large.

1181 days ago
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