Jen Shah pleads not guilty in telemarketing fraud scheme

“Real Housewives of Salt Lake City” star Jen Shah pleaded not guilty on Friday to running a telemarketing scheme — as prosecutors blasted her as being “at the highest level” of the fraud that netted her at least $5 million in “crime proceeds.”   

The reality TV star, 47, remains free on $1 million bond that was set Friday following her arrest three days ago on charges of conspiracy to commit wire fraud and conspiracy to commit money laundering — for allegedly ripping off hundreds of victims in the scam she carried out with co-conspirators and that spanned six states.

Shah dialed in from Utah for her Manhattan federal court arraignment, where she told a judge she pleaded “not guilty” to both charges. She did not publicly appear on video.

Assistant US Attorney Kiersten Fletcher asked a judge to set a $1 million bond secured by $250,000 cash or property separately for Shah and her alleged right-hand man and co-defendant Stuart Smith.

Smith also pleaded not guilty.

“As your honor is aware, there was a long-running investigation and two criminal cases related to this telemarketing scheme,” Fletcher said. “The defendants both Stuart Smith and Jennifer Shah are really at the highest level of the scheme as it’s charged.”

Fletcher added that the pair had “multiple shell companies” and that just one of these companies had “received no less than $5 million in crime proceeds over just the last few years of the scheme.”

“The government’s view is that Shah and Smith together controlled no less than $5 million in crime proceeds that passed through just that one entity account. And there are other accounts in the name of other shell companies,” Fletcher added.

“We believe that $250,000 is a modest security in light of the size of the fraud here and Ms. Shah’s access to the proceeds of the fraud,” Fletcher said.

Manhattan federal court Judge Sidney Stein noted that Shah’s financial disclosure forms from her arrest “lists as assets simply a checking and savings account of an amount that she stated were unknown leading to a net worth of zero on this form.”

“Which one would think is highly unlikely given the public figure she has become,” Stein added.

Earlier in the hearing, Shah’s lawyer Daniel Alonso said his client agrees to the $1 million bond but said it wasn’t necessary to make her put up the extra $250,000 to secure it.

“There is really no showing that anybody should put up property. There is no risk of flight here,” Alonso told the judge.

Shah’s other lawyer Henry Asbill noted that she rents her home and doesn’t own any other real estate property.

Initially, Stein asked about the risk of flight that Shah poses when considering she “is a participant in a popular TV show.”

“Her image is active on social media,” Stein said. “I must say it’s unlikely that she could disappear somewhere and not be located.”

But by the end of the proceeding, after hearing Fletcher’s arguments, Stein agreed to the additional bail measures noting, “I do think there is a risk of flight here.”

Stein restricted Shah’s travel to Utah, parts of New York and Washington, D.C., and ordered her to turn over her passport. She must also have two financially responsible people back her bond. 

The “housewife” also has to continue “mental health treatment” at a facility called LionRock and refrain from drug or alcohol use, Stein added. She’s also barred from engaging in any telemarketing activities.

Stein also noted that Shah and Smith’s cases would have to be fast-tracked since their case involves 10 other co-defendants whose trial has already been slated for October 18.

Shah and Smith each face up to 30 years in prison on the top count.