Gretchen Rossi sued for fraud

Apr 20, 2011 at 2:24 p.m. ET

Gretchen Rossi of Real Housewives of Orange County and boyfriend Slade Smiley are being sued for fraud by a former business partner.

Gretchen Rossi Slade Smiley

Real Housewives of Orange County's Gretchen Rossi and her boyfriend, Slade Smiley, are being sued by a former business partner for breach of contract, fraud, deceit and conspiracy.

RadarOnline reports that Ronann Myers, Gretchen's old makeup artist, business partner and now ex-friend, is suing the reality TV couple over a makeup line they agreed to develop together.

Myers said she and Gretchen had an oral agreement to split profits 50/50, but when she tried to get that in writing Smiley stepped in and prevented it.

"From February 2009 onward, Rossi and Smiley engaged in an elaborate scheme to defraud Plaintiff out of her interest in the make-up line," according to the lawsuit.

"Rossi and Smiley conspired to exploit Plaintiff's experience in, knowledge of and contacts within the make-up industry to create, design, launch and promote Gretchen Christine Beaute. Once Rossi and Smiley obtained what they needed from Plaintiff, they planned to 'cut her off without a dime.' Their plan was premeditated."

Myers accused Rossi of taking over $2000 out of the company's bank account without her partner's permission, and of having all profits of the joint venture deposited into her own PayPal account -- to which Myers had no access.

The makeup artist wants $100,000 in damages plus attorney's fees. No comment from Rossi and Smiley so far.

Image courtesy FayesVision/