In hot water. Vicki Gunvalson is reportedly facing a lawsuit over allegations of fraud linked to her insurance company.
According to court documents obtained by The Blast, the Real Housewives of Orange County star, 57, is accused of lying to Joan Lile for more than 20 years. The 82-year-old woman reportedly filed a case against Gunvalson and her company, Coto Insurance and Financial Services, for fraud, breach of fiduciary duty, negligence, intentional infliction of emotional distress and breach of contract.
The website reported that Lile bought a longterm care insurance policy from the reality star in 1996. The customer reportedly claimed that Gunvalson assured her and her husband that the agreement would cover future medical premiums after one of the spouses died.
However, Lile reportedly alleged that the Bravo personality lied about the “Lifetime Waiver of All Premiums of a Surviving Spouse” clause, all while “preying on the confidence and trust” of the couple.
According to The Blast, the documents claim that Gunvalson fraudulently and intentionally misrepresented what she sold her customer. Meanwhile, “[Lile] paid ever-increasing premiums yet was ultimately denied the specific benefit on which the purchase of the policy was predicated.”
The papers reportedly state that the benefit “was of the utmost importance to the Liles because Robert Lile was significantly older than Joan Lile and wanted, above all else, to know that his wife would be protected financially upon his passing.”
Robert died in 2017, at which time Joan’s claim was allegedly denied by Coto.
The More Than a Housewife author founded her company, of which she is the president, in 1991.
Gunvalson’s legal trouble comes after drama surrounding her role on Real Housewives. The original cast member denied rumors that she was demoted to a “friend” in the upcoming season 14. “Unless you hear it from me, then it’s simply a rumor,” she tweeted in February, “I am in negotiations.”
She later confirmed that she would appear. “First night of filming for me and @stevelodge_oc in the books,” she wrote. “Season 14 @evolutionusa #bravo #rhoc.”
Us has reached out to Gunvalson’s rep for comment.