Saturday, October 18, 2014

The Broke and the Beautiful: Guilty Again Edition

This week on The Broke and the Beautiful, one-half of a “Real Housewives of New Jersey” couple gets another jail sentence, and Crumbs reopened in midtown Manhattan. Also, 38 Studios’ bankruptcy trustee is looking for $232,800.





Giuseppe “Joe” Giudice during a hearing in the Passaic County Courthouse on Oct. 15, in Paterson, N.J.

William Perlman/Associated Press



It’s only been a couple of weeks since Teresa and Joe Giudice were sentenced to prison time for multiple counts of fraud, but that wasn’t the end of the legal troubles for one-half of the “Real Housewives of New Jersey” couple. According to the Associated Press, Joe Giudice took a plea deal for using a false driver’s license. The 18 months he’ll serve in prison for this offense will run concurrently with the 41 months he’ll serve for fraud. “This is the best we could have done,” Miles Feinstein, Mr. Giudice’s lawyer, told the AP. Once Mr. Giudice is finished serving time, there’s also a chance he will be deported. Born in Italy, he came to the U.S. when he was 2 and never became a U.S. citizen.





Bagel-croissant hybrids, or baissants, on display at a Crumbs Bake Shop in Midtown Manhattan

Victor J. Blue/Bloomberg News



The first Crumbs Bake Shop reopened in Midtown Manhattan this week and we were there. As Bankruptcy Beat reported, new owners Scott Fischer and Marcus Lemonis, who hosts a reality show on CNBC, have big plans for the bake shop. (You can check out the locations opening soon here.) Mr. Lemonis and Mr. Fischer, whose company also owns Dippin’ Dots, say Crumbs’ reliance almost solely on cupcakes was its downfall. Now, you’ll be able to indulge in desserts such as a pretzel-croissant hybrid, called a crozel, and a bagel-croissant hybrid, called a baissant. Crumbs abruptly closed its doors and filed for bankruptcy in earlyJuly, a week after it was suspended from the Nasdaq.





Curt Schilling in 2012

Winslow Townson/Associated Press



The bankruptcy trustee for failed videogame company 38 Studios LLC, founded by ex-baseball star Curt Schilling, wants $232,800 from lawyer Michael Corso. According to the Providence Journal, trustee Jeffrey Burtch said Mr. Corso, who worked for 38 Studios during its short time in business, shouldn’t have been paid before the company collapsed because 38 Studios. Mr. Corso had billed 38 Studios for “professional services rendered July 1, 2011, though Dec. 31, 2011,” charging $485 per hour for 480 hours. Mr. Burtch is seeking the money as part of a larger effort to recoup funds for creditors of the venture, which filed for bankruptcy in June 2012 with more than $100 million in debt.


Write to Melanie Cohen at melanie.cohen@wsj.com. Follow her on Twitter at @MelanieLisa.






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