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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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16.

emerald    

Oops, guess tat'll cut the divorce settlement down a bit then lol!!!

1092 days ago
17.

Caleigh    

It's great being on a real housewives show, you get to experience divorce, bankruptcies, the drama of your problems for all the world to see, is being on TV worth it? Russell, always looked a little shady to me, like Jim Bellino [RHOC} shady

1092 days ago
18.

RabbleRouser    

"Taylor" is just as shady as Russell with her fake names and being his right hand in all is bull****.

Shana Hughes is her name- and lies and bull**** is her game.

1092 days ago
19.

Mike    

His attorney says MMR is struggling? I seriously doubt it! Bob and Kira Lorsch are great people. They work very hard for the companies they own. Bob is a philanthropist, and MMR is his baby. Bob and Kira are the most generous people I know. MMR is great investment. If I had the money, I would invest right away. Don't blast Kira for her past. She is a very smart woman.

1092 days ago
20.

Christy    

SHE had a bunch of plastic surgery on her lips and HE needs some plastic surgery on his!

1092 days ago
21.

cari    

my ex, who know lives in brielle, new jersey, is a venture capitalist too who was also a personality challenged neurotic manipulative and conniving wife abusing psychopath also involved in numerous investment scams and stock manipulation. do you want his name too? he and russell should meet (in prison).

1092 days ago
22.

keni    

Ugh.... Taylor looks like a tranny.... she's such a worthless loser.... He's just an a-hole.

1092 days ago
23.

e33    

Ugly woman. I'm gonna call her the "Grouper"

1092 days ago
24.

Jack    

This whole group looks shady, who would want that crappy 3 penny MMR stock? Research the parties involved and Robert Lorsch has a long history of being involved in lawsuits. MMR probably is in financial trouble- Google health was offering the same service for free, and even that didn't succeed. Research these scam artists- they all pretend to be charitable but keep the money for themselves

1091 days ago
25.

Barb    

@Superman. My sentiments exactly.

1091 days ago
26.

DC Girl    

Who is next? The Salahi's!! They are being sued for fraud; taking money for a bogus winetour and then keeping the money when they lie about why they can't go through with it...

1091 days ago
27.

coop666    

Hey TMZ- when you use the word star to describe anyone from any of those Real Housewifes shows you should really use " ". Thanks

1090 days ago
28.

ccaragon    

First of all calling any one 'REAL' in Beverly Hills is an oxymoron. Secondly, these women look like DUCKS! Seriously? Do they only see each other will the same plastic surgeon same lips, same Jackson Family noses, cheek and chin implants and hair extentions so think they must look normal? I know they're not looking for normal- so they must believe they look good or even HOT? It's so ridiculous. Can'*****ch the show without quacking up.

1081 days ago
29.

Sara    

I hear what everyone is saying, but seriously??? A man killed himself and his wife and kids are left with no explanation. Stop being so cruel and heartless...these are real people. Whether they are in Beverly Hills or where ever else,they count; so back the *#$@ off. Thanks

1074 days ago
30.

lisa    

Work? What work? Scamming people to support his wife's social climbing lifestyle? And she's upset about it? Yeah... right... her disappointment for the TV is as real as her lips. She wants Russell to make money and leave so she can talk lies and smack behind his back and then have him blame Lisa, Camille, etc... whomever Taylor feels she needs to act victim to for the next episode. Pathetic. Bravo! please drop Taylor - she's not even in BH and she's not a "RHO" -- just white trash with emotional problems and 15 minutes of fame.

968 days ago
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