Gretchen Rossi of 'Real Housewives' Sued for Fraud

RadarOnline, Wednesday, April 20, 2011, 3:00am (PDT)

"Real Housewives of Orange County" hottie Gretchen Rossi and her boyfriend, fellow reality star Slade Smiley, are being sued by a former business associate for breach of contract, fraud, deceit and conspiracy.

RELATED: Check out the legal documents here

The lawsuit, exclusively obtained by RadarOnline, was filed in Orange County Superior Court by Ronann Myers, Rossi's former makeup artist, friend and business partner.

Myers alleges that in February 2009, she and Rossi decided to form a makeup company together with the agreement that the profits would be split equally.

She claims that both invested $15,000 in the venture and filed documents to form their company.

However, Myers never signed a partnership agreement with Rossi, insisting that the two had an oral agreement. Myers says that she tried to have the partnership agreement signed but that Smiley put the kibosh on that.

The lawsuit states: "From February 2009 onward, Rossi and Smiley engaged in an elaborate scheme to defraud Plaintiff out of her interest in the make-up Line. Rossi and Smiley conspired to exploit Plaintiff's experience in, knowledge of and contacts within the make-up industry to create, design, launch and promote ‘Gretchen Christine Beaute.' Once Rossi and Smiley obtained what they needed from Plaintiff, they planned to ‘cut her off without a dime.' Their plan was premeditated."

Myers claims that Rossi took $2,183 out of the joint business account without permission. Furthermore, Rossi is accused of having any profits of the sale of the makeup deposited directly into her PayPal account, which Myers had no access to.

Myers is seeking $100,000 in damages, attorneys' fees, and compensatory damages.

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