Her assistant Stuart Smith was also arrested and charged Tuesday.
In a statement announcing charges of conspiracy to commit wire fraud and money laundering, the Justice Department alleged that Shah, 47, of Park City, Utah, and her “first assistant,” Stuart Smith, 43, of Lehi, Utah, “generated and sold ‘lead lists’ of innocent individuals for other members of their scheme to repeatedly scam.”
In the indictment unsealed Tuesday, the Department of Justice alleges that between 2012 and 2021, Shah and Stuart conspired to defraud older and computer illiterate people by operating a multi-state telemarketing and in-person sales teams that would sell “essentially non-existent” services and fight consumer efforts to obtain refunds.
“In actual reality and as alleged, the so-called business opportunities pushed on the victims by Shah, Smith, and their co-conspirators were just fraudulent schemes, motivated by greed, to steal victims’ money,” U.S. Attorney Audrey Strauss said in the statement. “Now, these defendants face time in prison for their alleged crimes.”
Homeland Security Investigations Special Agent-in-Charge Peter C. Fitzhugh said that Shah and Smith “flaunted their lavish lifestyle to the public as a symbol of their ‘success'” but that they “allegedly built their opulent lifestyle at the expense of vulnerable, often elderly, working-class people.”
In the statement, New York Commissioner Dermot Shea said the pair “targeted and defrauded hundreds of victims but thanks to the hard work of the NYPD and our law enforcement partners, this illegal scheme was brought to an end.”
Representatives for Shah declined to comment. Smith did not immediately respond to a request for comment.
It was not clear if Smith has obtained an attorney as of Tuesday afternoon. CNN reached out to Shah’s attorney for comment but has not received a response.
Bravo has declined to comment.
An alleged nine-year scheme
The charges stem from a nine-year scheme in which prosecutors say Shah and Smith “sold alleged services purporting to make the management of victims’ businesses more efficient or profitable.” These services included tax preparation and website design services, though many of their elderly victims did not own a computer, the release said.
Part of the scheme also included Shah and Smith allegedly trafficking lists of potential victims, called “leads.” Many of the victims had already previously made an initial investment to create an online business with other participants in the scheme, the release said.
Shah and Smith also “undertook significant efforts” to hide their role in the scheme. Part of these efforts included incorporating their business entities using third-party names and telling other participants to do the same.
The duo also directed others to use encrypted messaging applications to communicate with other members of the scheme, instructed them to send shares of certain fraudulent proceeds to offshore bank accounts and “made numerous cash withdrawals structured to avoid currency transaction reporting requirements.”
“Shah and Smith flaunted their lavish lifestyle to the public as a symbol of their ‘success.’ In reality, they allegedly built their opulent lifestyle at the expense of vulnerable, often elderly, working-class people,” said Peter C. Fitzhugh, special agent-in-charge of the New York Field Office of Homeland Security Investigations.
The first season of “The Real Housewives of Salt Lake City” debuted in November 2020.
Shah is described by Bravo as “the queen of her house and her businesses.” During the show’s reunion episode in February, Bravo host Andy Cohen asked Shah to clarify what she does for a living.
“My background is in direct response marketing for about 20 years, so our company does advertising,” she said in response. “We have a platform that helps people acquire customers, so when you’re shopping online or on the Internet, and something pops, we have the algorithm behind why you’re getting served that ad.”
