What did Aaron Phypers allegedly do? Lawsuit filed against Denise Richards' husband claims he defrauded cancer patient

A lawsuit has been filed against Aaron Phypers, the husband of Real Housewives of Beverly Hills alum Denise Richards, alleging he defrauded a cancer patient out of $126,000.

Court documents obtained by In Touch Weekly and OK! Magazine reveals that Rupert Perry, trustee of the estate of the late Elina Katsioula-Beall, initiated the suit on November 13, 2024, accusing Phypers of breach of oral contract and fraud/false promise.

Elina Katsioula-Beall, described in the lawsuit as an "award-winning art director" for major events like the Academy Awards and concerts for artists such as Janet Jackson and Madonna, was diagnosed with sarcoma in 2019. After standard treatments failed, she sought alternative therapies.

According to the lawsuit, in June 2023, Katsioula-Beall and her husband Rupert met Phypers at a wellness center in Malibu, where he allegedly promoted a stem cell treatment claiming a 98% success rate. Phypers reportedly assured them that if the treatment failed, he would refund 50% of their payment.

Trusting his claims, the couple paid $126,000 for treatments conducted between July and September 2023. However, the lawsuit states the treatments did not work, as an MRI in December 2023 showed a 25% growth in Katsioula-Beall's tumors. Despite repeated requests for a $63,000 refund as promised, Phypers allegedly ignored them and suggested additional treatments instead.

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Allegations of fraud against Aaron Phypers

The lawsuit details multiple attempts by Katsioula-Beall to recover the promised refund before her passing. In December 2023 and February 2024, she emailed Aaron Phypers seeking repayment, but he reportedly failed to respond. On March 7, 2024, Phypers allegedly admitted to owing the money in a text message to a third party, assuring he would pay it.

Despite this, no payment was made, even after Katsioula-Beall sent another email with an invoice on March 29, 2024, two months before her death in May 2024.

According to Perry, Aaron Phypers admitted the debt during a phone call on June 28, 2024, but offered excuses for not paying. Rupert Perry’s lawsuit accuses Phypers of "intentional, willful misconduct" and seeks unspecified general damages as well as punitive damages to deter such behavior in the future.

A source close to Phypers told In Touch Weekly that he denies responsibility for the refund, claiming he was merely a middleman providing a space for the procedures. The source stated that the company administering the treatments had promised a refund and that Phypers had been trying to contact its CEO on Perry’s behalf.

In 2023, he faced a six-figure judgment in a separate lawsuit over alleged debts related to his wellness center. The recent allegations cast further scrutiny on his business practices and credibility.

As of now, Aaron Phypers has not formally responded to the lawsuit. The case remains unresolved, with Perry pursuing compensation on behalf of Katsioula-Beall's estate.

Aaron Phypers, husband of actress Denise Richards, is set to appear alongside his wife and family in the upcoming reality TV series, Denise Richards and the Wild Things, premiering on E! in 2025, as reported by Collider. Beyond this project, Phypers has not announced involvement in any new acting roles. He continues to manage his wellness center, focusing on holistic healing practices.