Scandal!

Gretchen Rossi of The Real Housewives of Orange County is being sued by Jay Photoglou for libel and slander!

Gretchen denied that she was involved with Jay as she was portrayed as the fiance of now deceased Jeff Betzel. Photoglou is now charging Gretchen for damaging his reputation by calling him a liar, a drunk and a thief.

She also allegedly lied about Photoglou threatening her life, stalking her and stealing from her. He also says that she wasn’t telling the truth about their relationship and it actually lasted over a year, even living together for several months!

He’s seeking punitive damages from Rossi.

We knew she was with that old guy for his money — may he rest in peace!

[Image via FayesVision / WENN.]