‘RHOSLC’ Star Jen Shah’s Arrest & Legal Drama, Explained

Following the Real Housewives of Salt Lake City star’s March arrest, Jen Shah has been classified as an alleged “senior participant” in a nationwide telemarketing fraud scheme, according to new court documents obtained by People on Friday, July 23. Both Shah and her assistant Stuart Smith are listed as “Tier A” defendants in the ongoing fraud case, with federal prosecutors claiming the duo was “responsible for orchestrating the broader scheme” and “supplying the leads that sustained” the telemarketing companies.

“In particular, Jennifer Shah and Stuart Smith obtained leads [names of potential victims] directly from lead sources and provided them to, among others, coaching sales floors operated in Utah and Nevada by [other defendants],” the document says, per the magazine.

Meanwhile, Shah’s lawyer Priya Chaudhry dismissed the claims in a new statement to People. “After investigating for nearly ten years, and a 12-day trial in which Ms. Shah was never mentioned, the Government suddenly lobs this absurd claim,” Chaudhry said. “This is just their latest made-up allegation, and like all others, totally unsupported by evidence. The reality is — she is totally innocent.”

Here’s everything you need to know about Shah’s ongoing legal drama.

What Is Jen Shah’s Job?

The CEO and founder of JXA Fashion, Shah Beauty, and The Real Shah Lashes also runs multiple marketing companies. In a November 2020 Bustle interview, Shah described her job like this: “The marketing companies have been my core business for almost 20 years. We do direct response marketing, which I would say 90% of it right now, in 2020, is all online, but we do a lot of infomercials, direct mail, print, anything that is direct response, that requires a call to action from a consumer.” She delved further into what her “niche” is, comparing herself to the Wizard of Oz. “I’m the person behind the curtain that nobody sees, but nobody knows how things are working, that’s me,” she explained.

Why Did Jen Shah Get Arrested?

Federal authorities arrested Shah on March 30, charging her with one count of conspiracy to commit wire fraud in connection with telemarketing and one count of conspiracy to commit money laundering. In a press release announcing the arrest, prosecutors claimed Shah and Smith engaged in a “coordinated effort to traffic in lists of potential victims,” referred to as “leads.” From there, they allegedly sold those leads to telemarketing companies that would attempt to sell business services to the targeted individuals. Both “received as profit a share of the fraudulent revenue per the terms of their agreement with those participants,” according to the indictment. Among the “hundreds” of people she allegedly defrauded, many were over the age of 55.

In the statement, Manhattan U.S. Attorney Audrey Strauss said: “Jennifer Shah, who portrays herself as a wealthy and successful businessperson on ‘reality’ television, and Stuart Smith, who is portrayed as Shah’s ‘first assistant,’ allegedly generated and sold ‘lead lists’ of innocent individuals for other members of their scheme to repeatedly scam. 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. Now, these defendants face time in prison for their alleged crimes.”

During an April 2 arraignment, Shah and Smith both pleaded not guilty to what the government described as a $5 million money laundering scheme. The judge set Shah’s bail at $1 million, giving her one week to pay the required $250,000 “to secure that bond in cash or property,” noting a “risk of flight.” A trial date was scheduled for Oct. 18, 2021.

Could Jen Shah Face Jail Time?

If convicted, the RHOSLC star faces a maximum sentence of 30 years for the wire fraud charges and an additional 20 years for the money laundering charges. The latest court documents listing Shah as a Tier A defendant noted that the classification reflects an alleged “greater culpability” and claims many of the senior participants “continued to participate in the Scheme after they became aware of the criminal charges.” Four other defendants are also listed as Tier A, one of whom has already been sentenced to 78 months in prison, according to People. Others in the lower tiers have received anywhere from 366 days to 87 months.

Will Jen Shah’s Legal Issues Be Shown On RHOSLC?

At the time of Shah’s arrest, a source told E! News that Bravo cameras captured the events unfolding for Season 2 of the reality series, which premieres later this year. “A crew with RHOSLC was outside the courtroom capturing it all for the show,” the insider said. “The bulk of the crew is with the rest of the cast in Colorado.” Meanwhile, a separate source explained that Shah’s RHOSLC co-stars learned about the news like everyone else, adding that many of them “had questions about Jen’s business, but no one saw these arrests coming.”

During a June 2 interview on the So Bad It’s Good With Ryan Bailey podcast, Shah’s castmate and friend Heather Gay confirmed that “everything plays out in real-time” in RHOSLC Season 2. “We are in it with her,” Gay explained. “We are going through it as friends, as people, who for the first time in their lives, are public figures. And for the first time in their lives, not only have to answer to their family and friends, but a worldwide audience.”

Gay added that she’s “passionate about second chances,” and even if the mother of two is “wrongfully convicted,” she can still “make things right” and “redeem herself.” Added the Beauty Lab + Laser owner, “I think that good people can do bad things.”

This post will be updated with new details as they become available.