Jillian Michaels 'It's a Fraud and it's Extortion'

8/7/2017 8:34 AM PDT

Jillian Michaels Argues with Crew Aboard Yacht in Italy

Jillian Michaels was so fed up with a yacht crew allegedly trying to extort her she took matters into her own hands.

We broke the story ... Jillian plunked down $60k for a boat during a 12-day trip along Italy's Amalfi Coast. Problem is ... Jillian says the boat was filthy, and had no hot water or wi-fi.

Then things got scary when the crew started demanding more money for fuel because Jillian said the yacht broker told her the crew's fuel money had been drained "because of Mafia in Capri."

Check it out ... things got very tense when Jillian confronted a crew member, who is clearly pissed he's being recorded. Jillian didn't back down, and still feels she's being scammed. She contacted the U.S. State Department and tells us the Embassy has been helpful.