Reality TV personalities Todd and Julie Chrisley have just pocketed a seven-figure settlement from the state of Georgia over claims of an investigator's misconduct, but don't expect them to go on a spending spree – Uncle Sam is knocking on the door, looking to collect. Court filings reviewed by FOX 5 Atlanta show the federal government is eyeing the Chrisleys' $1 million settlement as part restitution in their bank fraud and tax evasion case.
The Chrisleys had previously accused Joshua Waites, the state's former Department of Revenue's director of special investigations, of unjustly targeting them and mixing personal vendettas into their tax evasion charge, after they were indicted for fraud and tax charges. On top of settling their tax evasion case with the Georgia Department of Revenue for nearly $150,000, they were found guilty last year of exaggerating their income to swindle millions from banks and hiding their reality show earnings from the IRS, in a case that prosecutors have called a blatant disregard for financial responsibility particularly when Todd declared bankruptcy and then flaunted his wealth on national television.
The recent E! News release highlights the family's perspective, claiming the settlement as a signal of unjust treatment in their criminal case, a sentiment echoed by the Chrisleys' lawyer, Alex Little, saying, "This settlement is an encouraging sign. It's nearly unprecedented for one arm of the government to pay money to defendants when another arm is fighting to keep them in jail."
However, the couple's moment of financial relief might be short-lived, as the federal government has proposed the settlement money go towards their imposing restitution obligations, adding to the more than $17 million they already must repay the banks they defrauded, the money was meant to alleviate their debts – and it did, yet not a dime has reached Todd or Julie directly, the funds were used to clear off some debts they owed as disclosed in their pre-sentencing financial statements, changes which their lawyer claims were significant enough to notify the court and prosecutors as part of their sentencing obligations.
A federal judge has yet to make a ruling on whether the government can lay claim to the settlement dollars, which leaves the Chrisleys' financial future, much like their reality TV fame, on a precarious ledge. As they serve their respective 12 and seven-year prison sentences, with an Atlanta U.S. District Court judge having handed down the sentences along with a mandate for three years of supervised release, the narrative of wealthy lifestyle and legal upheaval continues to unfold.
