Teresa And Joe Giudice Fraud Update: Nancy Grace thinks this reality couple is 'going down!' Nancy is totally sure that Teresa and Joe are going to prison after being charged with 39 counts of fraud.

Grace believes that Teresa and Jow Giudice are both completely guilty of their fraud charges, no matter how much they deny the allegations. And Nancy was happy to talk about Joe and Teresa and their fraud nightmare, almost reveling in their downfall.

On Watch What Happens Live, Nancy Grace was asked about the Giudice fraud charges, and the ex prosecutor frankly opened up about the RHONJ couple. She made it very clear that Joe and Teresa will be headed to prison and Teresa is just as guilty as her husband Joe Giudice. She says that the Real Housewives of New Jersey stars are going to be facing serious trouble come their fraud courtdate in February.

Nancy says about the Guidice fraud charges, "I think they were in it together and you know what? You can get away with shoplifting, maybe stealing a car but don't mess with the feds when it comes to money. Never mess with the tax man. Never mess with the feds alright? They have no mercy. I predict they're going down. Much as Martha Stewart was used I think they will be used as an example to other people."

Nancy is right. Joe and Teresa Guidice will very likely serve time considering how much evidence prosecutors have on them. Joe and Teresa Guidice are to arrive in court on fraud charges in February to face their sentence on the fraud charges.  The chance of both of them facing jail time is startlingly good.

Joe and Teresa plead not guilty to a whopping 39 counts of fraud. They included bank fraud, bankruptcy fraud, and conspiracy to commit mail and wire fraud. Joe is also accused of failing to file tax returns for 2004 through 2008.

Although Teresa thinks that she won't be going to jail because a judge 'couldn't possibly take four children away from their mother' the possiblity of jailtime for the Jersey Housewife is very possible. 

Teresa and Joe Giudices were charged with a whopping 39 counts of fraud. They include bank fraud, bankruptcy fraud, and conspiracy to commit mail and wire fraud. Joe is also accused of failing to file tax returns for 2004 through 2008.

Joe Giudice, whose real first name is Giuseppe, is an Italian citizen. Thus, he could face deportation if he is convicted.

The Giudices, who live in Montville Township, N.J., are facing charges of exaggerating their income while applying for loans before their reality TV show debuted.

Joe Giudice, 43, was released on a $500,000 bond secured by his father, Frank. Teresa Giudice, 41, was released on a $500,000 unsecured bond.

The duo also had their travel restricted to New Jersey and New York and had to surrender their passports.

The pattern of alleged fraud may have lasted a decade, ," U.S. Attorney Paul Fishman said.

"They're serious charges," he said.

 "They are alleged to have made false statements to the bankruptcy court and the banks that lent them money," Fishman told press.

They also failed to file tax returns from 2004-2008.

In a statement, Teresa Giudice discussed the charges.

"I support Joe and, as a wonderful husband and father, I know he wants only the best for our lovely daughters and me," she said. "I am committed to my family and intend to maintain our lives in the best way possible, which includes continuing my career. As a result, I am hopeful that we will resolve this matter with the government as quickly as possible."

On Watch What Heppens Live Teresa adds that "I can't fall apart. I have my daughters. They mean the world to me."