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'RHOBH' Star Kyle Richards' Husband Suffers Setback in $32 Million Fraud Legal Battle

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By Ryan Naumann

“Real Housewives of Beverly Hills” star Kyle Richards, husband, Mauricio Umansky, suffered a small setback in the legal battle accusing him of fraud over the sale of a $32 Million mansion.

According to court documents obtained by The Blast, a judge recently ordered that the massive legal battle can move forward, during a recent court hearing in the case brought by a company named Sweetwater Malibu (run by a man named Teodoro Mangue) against Umansky and his real estate business.

The judge made several notes in the court order that informed Umanaksy that they weren’t buying a lot of the legal arguments he presented in support of dismissing the case. The judge ordered that Sweetwater Malibu will have to amend their complaint to add Mangue as a plaintiff, but said the lawsuit has presented enough at this point to allow it to continue.

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The mansion at the center of the battle had been seized by the United States government from Teodoro Nguema Obiang Mangue, who allegedly used funds stolen from his home country Equatorial Guinea (Mangue is the son of the president).

Umansky sold the home to a man named Mauricio Oberfeld for $32.5 million. The sale was approved by the United States Government. However, the seller accuses Umansky of failing to inform him that prior to the sale, Umansky received much higher side-offers.

Umansky also allegedly never disclosed he had partnered with the buyer to purchase the property. Umansky sold the home for $69.9 million a year later, at a profit of $37 million.

Sweetwater Malibu, which is run by Teodoro Mangue, accused Umansky in their lawsuit of breaching his duties as a real estate agent and believed he did self-dealing and earned secret profits.

Umansky denies all allegations of fraud and calls out Mangue. He said the home was taken from Mangue after the U.S. government found his hundreds of millions came from criminal activity.

He claimed Mangue's lawsuit is nothing more than an attempt to take back the proceeds he forfeited to the United States. He added, "By suing Defendants and making unfounded and baseless allegations, Plaintiff repeats a strategy Obiang has used before unlawfully enriching himself by using shell companies to take money from innocent parties." Umansky demanded the whole case tossed ASAP.

The mansion – which Umansky was the realtor for – was used on the show while still being listed. It was the location of a massive party during Season 7 of "RHOBH."

The “Great Gatsby” party was thrown by Kyle and Mauricio and Dorit Kemsley, Lisa Rinna, Erika Girardi and Lisa Vanderpump were all guests.

Back in October 2018, Umansky and The Agency — and his insurance company, Western World Insurance — dismissed a separate lawsuit over the $32 million home sale

Umansky was sued by his insurance company, Western World, who wanted the court to order they didn’t have to pay for his legal bills relating to the dispute between Umansky and the seller of the Malibu home (aka Sweetwater Malibu), claiming he had breached their contract.

Kyle Richards’ husband then counter-sued the insurance company and accused them of taking the side of the seller in the dispute over the sale. He denied all allegations of wrongdoing or that he breached their deal. He demanded Western World’s lawsuit against him not move forward until the outcome of the issue with the seller.

In that case Umansky also denied all allegations of wrongdoing and said the entire transaction was subject to terms of a settlement agreement between the seller and the United States Government.

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