According to People, legal papers were filed on Friday at the LA Superior Court by MyMedicalRecords.com against Armstrong and her husband Russell.
The legal documents allege that the couple accumulated $1 million from people who were misled into thinking that they were investing in the company.
The papers also claim that Taylor and Russell misused money given to them in order to fund their "lavish lifestyle".
Armstrong filed for divorce from her husband of six years earlier this month, after the couple separated in May.
The reality star is seeking joint legal and primary physical custody of their daughter, and cited "irreconcilable differences" as the reason for the split.
The Real Housewives of Beverly Hills will return for a second season on Bravo later this year.
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