Teresa And Joe Giudice Fraud Update: Outpoken ex prosectotor, Nancy Grace, thinks this reality couple is 'going down' after they were charged with 39 counts of fraud, even comparing Teresa and Joe to Martha Stewart.

The HLN host is positive that Teresa and Joe are going to prison because the feds wants to make an example of the RHONJ infamous couple. She compares the Giudice fraud charges with Martha Stewart's legal troubles and thinks the feds will want to make an example of the couple. But Nancy believe Teresa and Joe won't coming out of jail as fast as Martha did. 

Grace tells Andy Cohen on 'Watch What Happens Live' that Teresa and Joe Giudice are both completely guilty of their fraud charges, no matter how much they deny the allegations. And Nancy was happy to open up about her opinion on Joe and Teresa's fraud nightmare, almost reveling in their downfall. She's smart but she can be such a b**ch!

When asked about the Giudice fraud charges, and the ex prosecutor frankly opened up about the RHONJ couplemaking it very clear that Joe and Teresa will be headed to prison and Teresa is just as guilty as her husband Joe. She says that the Real Housewives of New Jersey stars are going to be facing serious trouble come their fraud courtdate schedualed for February.

Nancy elaborates 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. 

In case you didn;t know, Teresa and her husband Jow Giudice are facing a multitude of very serious charges which can result in a 50 year prison sentence each.

Below is a summary of their charges:

1) Mail Fraud and Wire Fraud: The indictment states that between 2001-2008, using the U.S. mail, private carriers and wire communications, they defrauded 7 different banks and mortgage lenders.

2) Bank Fraud: The indictment states 5 banks were defrauded by submitting applications with false tax returns, pay stubs, and W-2s that gave false salaries and income. In total they stole $4.5 million from various banks.

3) Loan Application Fraud: For making false statements in those bank loan applications

4) Bankruptcy Fraud: Concealment, False Oaths, False Declarations. These are 22 different counts alone. In essence, they lied to the BK courts (under oath) about their finances and they knowingly filed false documents to conceal their income. That's perjury. Tre & Joe never withdrew their bankruptcy, the courts denied their petition on suspicion of fraud.

5) Failure to Make Tax Returns: These counts are all against Joe, and claim he didn't file tax returns from 2004-2008.

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

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.

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."