How Much Did Taylor Armstrong Know About Russell's Financial Dealings?

How Much Did Taylor Armstrong Know About Russell's Financial Dealings?

Shocking new claims have surfaced against The Real Housewives of Beverly Hills star Taylor Armstrong and her late husband Russell.

In the wake of her husband's tragic suicide, Taylor has gone on a publicity spree, accusing Russell of violent abuse.

She also told Dr. Phil she knew very little about Russell's financial situation.

"Did you know about his financial trouble?" Dr. Phil asked.

Taylor said, "He didn't want me to know what was going on."

But former friends and business partners of the reality stars are now speaking out accusing the couple of misappropriating millions to fund their lavish lifestyle.

"I definitely feel betrayed by Russell," said Los Angeles businessman Bob Lorsch.

Lorsch befriended the Armstrongs and partnered with Russell to find investors and raise money for their company mymedicalrecords.com.

 "What's about to come out, I think, is the unraveling of the Real Housewives, or the Real Armstrongs," Lorsch said.

Lorsch is now suing Russell's estate and Taylor and speaking only to INSIDE EDITION.

"You contend that Russell funneled millions of dollars from investors and used it to finance his own lifestyle," INSIDE EDITION's Jim Moret said.

"I look at Russell and Taylor as a duo that worked together to create an illusionary lifestyle at the expense of a lot of innocent people," Lorsch said.

According to the lawsuit, the Armstrongs lived a lavish Beverly Hills lifestyle even while Russell was in bankruptcy, allegedly using other people's money to finance their extravagant tastes.

Lorsch says Taylor was intimately involved in Russell's shady business affairs, writing and receiving checks totaling hundreds of thousands of dollars.

"Was Taylor an innocent victim in Russell's business affairs?" Moret asked.

Lorsch said, "She wrote checks for the extravagant aspects of their lifestyle and she had to know where those monies came from."

Lorsch points to that highly publicized $60,000 birthday party Taylor threw for her four-year-old daughter Kennedy as an example of their lavish spending and he showed INSIDE EDITION another check she wrote for $20,000 that, believe it or not, went to Prince Charles's charitable trust while Russell was in bankruptcy.

In exchange, they got to meet the prince.

Lorsch said, "They're e-mailing photos of Taylor and Russell and Prince Charles...bragging about it. Taylor was anything but totally innocent."

The lawsuit also accuses Russell of "secretly funneling money […] in concert with Taylor […] to redecorate their mansion."

Lorsch says Taylor relied on more than just her good looks to lure investors. She told wealthy clients her maiden name was Ford, as in the Ford Motor Company.

"Did Taylor bring in investors by claiming she was a member of the Ford family?" Moret asked.

"The story was that Taylor was a member of the Ford family and the Ford Family was one of the biggest investors in My Medical Records and therefore everybody could feel comfortable."

But Taylor has no affiliation with the Ford family. To date, Lorsch says some $3 million is still unaccounted for.

"At some point in time someone has to say to this woman, you've given us these incredible stories but where did three million dollars go?"

Taylor and her attorney deny that she had any knowledge of Russell's business affairs and say she never portrayed herself as a member of the Ford family.