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RHOBH and Buying Beverly Hills star Mauricio Umansky is in hot water over a massive PPP loan. The estranged husband of Kyle Richards has a very successful real estate firm, The Agency. More so, The Wall Street Journal has him billed as the #1 Top-Producing Real Estate Agent in California. So, what would cause him to feel the need to obtain a loan? Keep reading for more details.
Mauricio Umansky In Hot Water Over Massive PPP Loan
Since Mauricio Umansky left his brother-in-law, Rick Hilton’s real estate agency, he has emerged as one of the best. The Agency just kept growing and now has over 115 offices in 12+ countries. Kyle Richards would constantly praise Mauricio for how far he came and the dedication he put into his work. Netflix recognized this and Buying Beverly Hills was born. It showed Mauricio as a businessman as well as his personal life. He now has three out of four of his daughters working alongside him and is clearly living the dream.
Unfortunately, things came crashing down when his marriage fell apart. Mauricio and Kyle had been married for nearly thirty years and then they grew apart. He was always traveling for work while she adopted a new healthy lifestyle that included sobriety and working out. More so, she was always hanging out with Morgan Wade which prompted romance rumors. Kyle and Mauricio called it quits and now, he is with young philanthropist, Nikita Kahn, happier than ever. However, the rug has been pulled out from under him, according to In Touch Weekly.
Allegedly, Mauricio Umansky and The Agency obtained a $3,521,153 PPP (payroll protection program) loan they did not need. Mauricio is denying this ever occurred. Court docs allege that Realtor LLC filed a complaint for violations of the federal False Claims Act. This is against Mauricio, his partner, William Rose, and The Agency. It was sealed in July 2023 but was just opened and per the filing:
“This is a case about greed during a national health emergency. Those two programs were enacted for the sole purpose of preventing termination of employees by providing loans to businesses that were unable to pay them due to the impact of COVID-19, not to bolster or preserve the profits of a business that had sufficient funds available to pay its employees. Yet, the vast majority of the proceeds went to those very businesses, leaving many small businesses like restaurants, grocers and other small businesses that were directly impacted by COVID-19 through lost business out in the cold.”
Mauricio and William applied for and received two PPP and CARES Act Loans totaling $3,521,153. The biggest issue is that The Agency was not eligible or in need of this loan with the amount of income they bring in.
Billionaire Problems
According to the suit, The Agency’s sales are in the billions, $11.2 in 2021. Therefore, getting a PPP loan was not at all necessary for Mauricio Umansky or William Rose. The suit continued by stating this:
“Despite this, in order to receive the loans, Defendants falsely certified that ‘current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant’ and that they needed the loans to pay their employees, a requirement for eligibility for PPP loans.”
In round one of the PPP loan application process, The Agency requested $2.3 million. By the second, they asked for $1.1 million. Finally, Mauricio and William were given loan forgiveness but the big issue is how they are financially secure. It is not just their business but them as individuals. Therefore, this was highly unnecessary. An Agency rep shared this:
“While we are unable to comment on ongoing litigation, we want to emphasize that The Agency has always operated with the highest level of integrity in all aspects of our business. Like many companies, we faced significant challenges during the COVID-19 pandemic, including layoffs and cutbacks. Our focus has always been, and especially during that challenging period, on delivering exceptional service to our customers and supporting our employees. The claims in this case do not reflect the reality of our operations and financial situation at the time we filed for our PPP loans, and we intend to vigorously defend against these meritless claims.”
Are you shocked by this news and do you think Mauricio and The Agency should have filed for these loans? Let us know your thoughts in the comments below.
Amanda has been a professional freelance writer for over a decade, holding both a BA and an MA. Her passions include animals, iced coffee, gnomes, summer, music, and ‘Vanderpump Rules’.
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