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Lori Loughlin and Husband Mossimo Giannulli Will Be Audited by IRS Over College Scandal

Mossimo Giannulli and Lori Loughlin attend the Malibu Lumber Yard grand opening held at the Malibu Lumber Yard on April 21, 2009 in Malibu, California. John Shearer/WireImage

The hits just keep coming. Lori Loughlin and Mossimo Giannulli, who are facing up to 40-year-prison sentences if found guilty of their alleged involvement in the nationwide college admissions scandal, will now be audited by the IRS, a source exclusively tells Us Weekly.

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According to the source, the twosome allegedly wrote off William “Rick” Singer’s reported scam services as a deduction. “They are being audited for five years on their personal income taxes, along with three years for Mossimo’s business,” the insider reveals.

The When Calls the Heart actress, 54, and the fashion designer, 55, pleaded not guilty to charges of fraud and money laundering on Monday, April 15, after previously rejecting a plea deal that included a two-year minimum prison sentence.

“Her attorney told her not to take the deal,” a source told Us earlier this month about Loughlin’s decision.

Legal coach and crisis manager Wendy Feldman explained to Us in April that the actress and designer had “no choice but to plead not guilty.”

“They missed the opportunity for a plea bargain during the first round, and now there might not be a deal available for them to take,” she said.

Now the actress, who a source told Us was previously “in denial” about her situation, has started to accept her reality. “Lori is constantly arguing with Mossimo, because she is beginning to grasp that they are in very serious jeopardy,” the source tells Us, adding, “She has tried to hire new lawyers.”

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The pair were indicted after allegedly paying Singer a bribe of $500,000 in order to have their two daughters, Bella, 20, and Olivia Jade, 19, represented as recruits to the University of Southern California crew team, despite the fact that neither girl participates in the sport, ensuring their entrance to the school.

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Mossimo was arrested on March 12 along with actress Felicity Huffman, who pleaded guilty to charges of fraud on April 8, while Loughlin was taken into custody on March 13. Both were released the same day of their arrests on $1 million bonds.

With reporting by Jennifer Heger 

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