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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

No Avatar
31.

aviddd Viewerrr    

Martha Stewart claimed she didn't know what was going on behind the scenes with her stocks... but guess what Taylor, Martha went to prison..what makes this you the woman that stood behind Russell Armstrong think she is just immune from all this. There is proof with your signatures, and ppl will come forward and corroborate these stories when they are subpoenaed, do you not realize this? Especially the business deals at the Beverly Hills Hotel where you served them HOR'DOURVES, what if men or women for that matter come forward and make the claim that you tried to increase your chances of getting investments from them claiming you were from old' Ford Motor money, just by saying that you were forced to sign do***ents by your abusive husband obviously sounds lame and baseless to everyone reading, I'm sorry to have to be so blatant. Don't think it's going to automatically release you of your liability. I can't believe or fathom all of this stuff. Your poor husband was lead by you into believing if he footed your faux lifestyle out in front of the cameras that he would get tons of new business and you all would get multi-million dollar endorsements. Only thing he was blind to was the fact that you haven't been as lucrative a deal to RHOBH as you or he thought you would be, and the ratings you did get were for the wrong reasons. the drama and the death story, God Rest your husband's soul. I t doesn't always work that way Taylor, you just don't put all of your eggs into one basket, But you let money and greed get in the way, possibly of what your true vision was or should have been and you should have been more careful with your spending. You can't flaunt what you don't really have. An 11, 000 dollar allowance for show appearances, including home upkeep, nanny's, pool upkeep, gardening, clothing, shoes, jewelry, a 65,000 dollar b0day party?? Really?? I didn't think taking the puppy from your daughter on camera was appropriate, you could have waited and not embarrassed Russell or Kennedy. I'm sorry, I know you hear this all the time. but this was all done to maybe/possibly see endorsements rolling in, but it didn't happen on the scale you thought it would and look what happened to poor Russell. I can't even imagine what he must have been going through last July. I know you went through a horrible loss as did your daughter and I express my genuine condolences but you need professional help MsTaylor and this was uber evident on the show, and from the publicity I've seen for you on the internet... it's bad and you appear to have more ppl who dislike you then like you, but how we present ourselves and cope with our responsibilities and deal with life in general or on a large scale points out to exactly who we are and what we might be capable of If you have made mistakes, cop to them, don't keep covering them up because it will only dig a deeper hole for you in the end. You can't cover up problems with more dishonesty. God will forgive you, and you always say on the show, " Hand To God." Do you mean it Taylor? Can you honestly say right now that you mean that? I hope so, I really do. But remember, no one wants to continue watching you self-destruct on camera, and we don't want to see you look like a fool, not saying you have, but you know what I'm talking about. No one is wanting to see you back on this season, I wonder why? Can you tell us? What would you do now to change how we feel? Just sayin'

830 days ago
32.

aviddd Viewerrr    

Martha Stewart claimed she didn't know what was going on behind the scenes with her stocks... but guess what Taylor, Martha went to prison..what makes this you the woman that stood behind Russell Armstrong think she is just immune from all this. There is proof with your signatures, and ppl will come forward and corroborate these stories when they are subpoenaed, do you not realize this? Especially the business deals at the Beverly Hills Hotel where you served them HOR'DOURVES, what if men or women for that matter come forward and make the claim that you tried to increase your chances of getting investments from them claiming you were from old' Ford Motor money, just by saying that you were forced to sign do***ents by your abusive husband obviously sounds lame and baseless to everyone reading, I'm sorry to have to be so blatant. Don't think it's going to automatically release you of your liability. I can't believe or fathom all of this stuff. Your poor husband was lead by you into believing if he footed your faux lifestyle out in front of the cameras that he would get tons of new business and you all would get multi-million dollar endorsements. Only thing he was blind to was the fact that you haven't been as lucrative a deal to RHOBH as you or he thought you would be, and the ratings you did get were for the wrong reasons. the drama and the death story, God Rest your husband's soul. I t doesn't always work that way Taylor, you just don't put all of your eggs into one basket, But you let money and greed get in the way, possibly of what your true vision was or should have been and you should have been more careful with your spending. You can't flaunt what you don't really have. An 11, 000 dollar allowance for show appearances, including home upkeep, nanny's, pool upkeep, gardening, clothing, shoes, jewelry, a 65,000 dollar b0day party?? Really?? I didn't think taking the puppy from your daughter on camera was appropriate, you could have waited and not embarrassed Russell or Kennedy. I'm sorry, I know you hear this all the time. but this was all done to maybe/possibly see endorsements rolling in, but it didn't happen on the scale you thought it would and look what happened to poor Russell. I can't even imagine what he must have been going through last July. I know you went through a horrible loss as did your daughter and I express my genuine condolences but you need professional help MsTaylor and this was uber evident on the show, and from the publicity I've seen for you on the internet... it's bad and you appear to have more ppl who dislike you then like you, but how we present ourselves and cope with our responsibilities and deal with life in general or on a large scale points out to exactly who we are and what we might be capable of If you have made mistakes, cop to them, don't keep covering them up because it will only dig a deeper hole for you in the end. You can't cover up problems with more dishonesty. God will forgive you, and you always say on the show, " Hand To God." Do you mean it Taylor? Can you honestly say right now that you mean that? I hope so, I really do. But remember, no one wants to continue watching you self-destruct on camera, and we don't want to see you look like a fool, not saying you have, but you know what I'm talking about. No one is wanting to see you back on this season, I wonder why? Can you tell us? What would you do now to change how we feel? Just sayin'

830 days ago
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