Real Housewives' Taylor Armstrong and Estranged Husband Sued for $1.5 Million
07/29/2011 AT 08:20 PM EDT
MyMedicalRecords.com alleges in the lawsuit filed Friday in L.A. Superior Court that the pair pocketed more than $1 million from people misled into thinking they were investing in the company.
MyMedicalRecords.com accuses the duo of misusing funds to "live a lavish lifestyle" including paying for interior decorating on their mansion.
Russell Armstrong's attorney Ronald Richards tells PEOPLE: "My client has done nothing wrong and this complaint is a desperate attempt by a company whose stock is trading at four cents. These types of penalty lawsuits amount to nothing but legal blackmail."
Armstrong, 40, filed for divorce from Russell Armstrong on July 15 and says Russell verbally and physically abused her.