"My first thought today was, 'Oh, if they weren't on reality TV, none of this would probably ever be exposed,'" the former Real Housewives of New York star told Us yesterday.
"And it's just funny how certain people are [like a] moth to a flame," Frankel continued. "It's almost like—not that you want to get caught—but people who love to be in the spotlight often have a lot of skeletons in their closet. It's just an interesting thing."
In the 39-count indictment charged against them earlier this week, Teresa and Joe are being accused of conspiring to defraud lenders, illegally obtaining mortgages and other loans and allegedly trying to shield their assets during a bankruptcy case.
"I haven't paid that much attention," Frankel said of the Giudice's charges. "Do I feel sorry for them? No, I don't. Not so much, because it broke the law. You broke the law and you went on television. That's not really that smart."
Teresa and Joe appeared in a New Jersey federal court on Tuesday morning and were each released on $500,000 bail. During the court hearing, the Real Housewives couple was briefed on the possibility of Joe being deported to his home country of Italy (he is not a U.S. citizen) if he's convicted. Joe and Teresa did not enter their pleas to these charges but are expected to at their arraignment hearing Aug. 14, 2013.
Frankel added, "I feel badly for them because they have kids and their kids didn't sign up for this." Teresa and Joe have four daughters together, Gia, Gabriella, Milania and Audriana.
"Right now, she's acting like everything's fine," a source close to Teresa told E! News earlier this week. "What shocked her was the number of photographers outside the courthouse and outside her home right now. She had no idea it was that big of a story and can't understand why everyone is so interested. She's not grasping the seriousness of the situation."