Russell Armstrong, Taylor Armstrong

Jason Merritt/Getty Images for Global Green

This probably isn't Taylor Armstrong's idea of a romantic reunion.

The Real Housewives of Beverly Hills matron and soon-to-be ex-husband Russell Armstrong have been sued for $1.5 million by a company that claims it hired Russell's venture capital firm to expand its business, but that he and his wife ended up using funds he supposedly raised for the plaintiff to do fancy things like redecorate their mansion. alleges that Russell "holds himself out to the public as a successful venture capitalist who has been instrumental in obtaining $2 billion in capital funding for new business ventures." The plaintiff charges that Russell then went and used his company, Nuway Digital Systems, to pocket nearly $1 million from investors who were misled into believing they were buying shares of MyMedical Records, which is now owned by MMRGlobal.

The suit, filed today in L.A. Superior Court, states that Russell was a member of the MMR board of directors and that he was paid for his consulting services. He breached his fiduciary duty to the corporation, the suit argues, by "engaging in a pattern of self-dealing...designed to enrich" himself, Taylor and Nuway.

We're guessing litigation isn't on the couple's list of community property, but who wants to bet Taylor's willing to let her hubby hang on to this one in the divorce?

—Additional reporting by Claudia Rosenbaum

WATCH: Introducing new Housewives star Dana Wilkey

  • Share
  • Tweet

We and our partners use cookies on this site to improve our service, perform analytics, personalize advertising, measure advertising performance, and remember website preferences. By using the site, you consent to these cookies. For more information on cookies including how to manage your consent visit our Cookie Policy.