Just two days after Real Housewives of New Jersey star Teresa Giudice appeared in a federal court on 39 counts of fraud, her lawyers allegedly struck up a plea bargain that would allow Giudice to sidestep jail time, but it was denied by the prosecution.
According to Radar Online, Giudice was told that jail time was necessary if she intended on pleading out her case.
"Teresa and Joe's defense team submitted a plea deal on Wednesday, but the U.S. Attorney denied it," a source told Radar. "They believe that the evidence will show that Teresa can't play dumb. She was in cahoots with Joe and was just as much a part of orchestrating the scam as he was."
Giudice's lawyer did not delve into the matter.
"I'm not discussing it," Henry Klingeman, attorney for Teresa and her husband Joe, told InTouch. "If there ever were a deal, I would never discuss any conversations with the government about any client."
41-year-old Teresa and Joe Giudice, 43, pleaded not guilty on Wednesday, with charges of mail wire fraud, bank fraud, falsifying statements on loan applications, and bankruptcy fraud, to name a few.
Teresa allegedly lied about working for a company called Modern Era Investment Corp. on a $121,500 mortgage application she submitted in 2001-she stated she earned around $3,750 a month while employed there, but the prosecution contends that Giudice was unemployed from 2001 to 2008.
Joe reportedly participated in tax evasion from 2004 to 2008.
Even before RHONJ put Joe and Teresa in the spotlight, the two were allegedly working the system-they've been accused of faking income claims on applications for loans a few months before the show began in 2009.
The Giudices face up to 50 years in prison and millions in fines. They will go to trial on Oct. 8.
