In Touch claims that the outspoken reality star's husband stepped out on her back in December with a woman named Jamie Jackson, just weeks before Teresa began her federal prison sentence.
A source tells us that "100 percent, nothing happened, nothing" between the two.
"Joe was in Atlantic City for a meeting about getting a wine that he's involved with into one of the casinos. He was also there to discuss a potential appearance with Teresa for later that month before she surrendered," the source dished.
"Jamie, the woman in question, was there because she's a model who was hired by the wine company to do promotional work."
And while there are photos of Joe with Jamie in Atlantic City, our insider explains that the two were joined by a group of people for a "business meeting that turned into a lunch."
Joe and Jamie "weren't alone" during the meeting and had met before through a wine company that he's currently involved in.
The father of four gave a statement to Us Weekly shooting down the cheating allegations, saying, "I did not flirt with her. I did not make out with her, nothing happened between us. Everything In Touch is saying that happened between us are lies."
Meanwhile, Jamie spoke to the magazine as well and gave a similar statement regarding the controversy.
"I definitely never slept with him...Nothing happened with me and Joe… nothing inappropriate happened at any time. We did not hook up, kiss, or anything more. I saw him at the two business meals and nothing more, it's all made up bulls--t."