In March 2021, Jen and her assistant Stuart Smith were arrested and charged with one count of conspiracy to commit wire fraud in connection with telemarketing. According to People, they were said to have victimized at least 10 people over age 55. Jen and Stuart were also charged with one count of conspiracy to commit money laundering.

Initially, both Jen and Stuart pleaded not guilty during an arraignment in April 2021, but Stuart changed his plea to guilty in November of that year. Jen maintained her innocence into 2022 but later changed her tune.

According to Variety, on July 11, 2022, Shah pleaded guilty to criminal fraud charges. The disgraced reality star entered into a plea agreement ahead of her court date, which was scheduled for July 18, 2022. Priya Chaudhry, Shah's attorney, opted to withdraw her previous not guilty plea in favor of arranging a deal.

After Jen reported to prison, her rep told People in March 2023:

"I have spoken with my client Jen Shah over the phone this week — she is doing well and remains committed towards making her victims whole. She has initiated her payments towards restitution, and we hope to have her home as soon as possible so that she may resume life with her family and work, putting this chapter of her life behind her."

In addition to serving her time in jail, Jen was forced to pay more than $6 million in restitution to the victims and forfeit $6 million.

According to a report from TMZ, Jen is expected to undergo mental health treatment once she's served her jail sentence.