Federal prosecutors say Todd and Julie Chrisley should face up to 22 years in prison for defrauding community banks out of tens of millions of dollars and then obstructing the investigation against them.
A federal grand jury found the couple, who starred in the reality show "Chrisley Knows Best," guilty on charges of criminal bank fraud and tax evasion in June.
Prosecutors said the Chrisleys took out $30 million in fraudulent bank loans to fund their lavish lifestyle and extravagant spending and used a film production company they controlled to hide income to keep the IRS from collecting unpaid taxes. Additionally, when the couple learned that they were under investigation, they involved their own family members and friends to obstruct justice, prosecutors said.
The Chrisleys maintain someone else had control of their finances.
The couple was indicted in 2019 on charges of conspiracy to commit bank fraud, bank fraud, tax fraud and conspiracy to defraud the United States. Julie Chrisley was also hit with wire fraud and obstruction of justice charges.
The sentencing hearing is scheduled for November 21.
Prosecutors are calling for Todd Chrisley to receive 17 1/2 to nearly 22 years in prison, and for Julie Chrisley to receive to 10 to 12 1/2 years in prison, CBS News reported. They also want the couple to pay nearly $20 million in restitution.
"A message must be sent to the Chrisleys and others that tax evasion is a serious offense, and that wealthy tax cheats who use personal companies to avoid paying taxes will face a substantial prison sentence," prosecutors said in a sentencing memorandum obtained by CBS. "Finally, Todd and Julie Chrisley's arrogance merits special consideration."
"The seriousness of their actions is further underscored by the fact that neither defendant has expressed remorse for their crimes, instead continuing to blame others for their own criminal conduct," prosecutors continued. "Given the seriousness of the Chrisleys' crimes, a lengthy period of incarceration is warranted."
The couple's lawyer has argued that the sentencing range should be much lower – between 8 and 9 months, per CBS.
Prosecutors pointed out that the couple filmed a promotional video in 2013 for a new reality show about their extravagant lifestyle, even though they were in the middle of bankruptcy proceedings.
"In the video, Todd boasted that he 'make[s] millions of dollars a year,' and in another shot where he is standing in his walk-in closet in his expansive house, he bragged that 'in a year, we probably spend over $300,000, sometimes more, just on clothing,'" prosecutors said.
The bulk of criminal activity took place before the Chrisleys became reality TV stars.
"The Chrisleys, with the help of their former business partner, submitted false bank statements, audit reports, and personal financial statements to banks to obtain the millions of dollars in fraudulent loans. The Chrisleys then spent the money on luxury cars, designer clothes, real estate, and travel—and used new fraudulent loans to pay back old ones," the Department of Justice said in statement. "After spending all the money, Todd Chrisley filed for bankruptcy and walked away from more than $20 million of the fraudulently obtained loans."
During the bankruptcy proceedings, Julie Chrisley also submitted fake financial documents and lied to real estate agents to obtain a luxury rental house in Los Angeles, prosecutors said. As soon as the Chrisleys began renting the house, they failed to pay rent, and the homeowner filed an eviction lawsuit.
"While the Chrisleys were earning millions and evading paying Todd Chrisley’s delinquent back taxes, they also failed to file tax returns or pay any taxes for the 2013, 2014, 2015, and 2016 tax years," prosecutors said. "At one point, Todd Chrisley falsely claimed on a radio program that he paid $750,000 to $1 million in federal income taxes every year, even though he had not filed or paid his personal income tax returns for years."
The Chrisley's former business partner, Peter Tarantino, was found guilty of filing two false corporate tax returns on behalf of the couple's company.
"When you lie, cheat and steal, justice is blind as to your fame, your fortune, and your position," Keri Farley, Special Agent in Charge of FBI Atlanta, said in a statement. "In the end, when driven by greed, the verdict of guilty on all counts for these three defendants proves once again that financial crimes do not pay."
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