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The former Miss California USA may have to repay $5,200 that she borrowed for her breast implants.
State pageant officials for the state of California say that they loaned the money to Ms. Prejean for the medical procedure in order to be more competitive for the Miss USA pageant.
The repayment demand came in response to a lawsuit filed by Ms. Prejean where she claims that pageant officials violated her medical privacy by leaking to reporters that her breasts were augmented and that they paid for it.
CNN reports that the pageant officials believe that Ms. Prejean is the one at fault: "The truth about Prejean's breasts 'ceased being private during the swimsuit competition of the nationally televised Miss USA pageant, in which Ms. Prejean walked the stage in a bikini,' pageant lawyers said."
The pageant officials say that they loaned the money to Ms. Prejean under an oral agreeement.
The suit also demands any profits from her tell all book which comes out next month.
The demands were made in a cross-complaint in response to Ms. Prejean's lawsuit that she was wrongly terminated from her post as Miss California USA because of religious discrimination.
She stated that she was against same-sex marriage during the Miss USA competition during a question from a judge.
"We will make the case that her title was taken from her solely because of her support of traditional marriage," Ms. Prejean's attorney said in August.
The pageant claims that it terminated her because she was belligerent, non cooperative and breached her contract with them: "Ethically and morally, Carrie Prejean no longer deserved to be Miss California USA," the pageant filing said.
The lawsuit's claims gets even uglier: "With her new-found notoriety, an inflated sense of self, and the lure of financial gain available to her, Ms. Prejean turned even further against the Miss California USA organization, abandoned her obligations as the Miss California USA titleholder, and violated multiple provisions of the contract which governed her reign," the pageant filing said.
The pageant claims that Ms. Prejean only filed her lawsuit in order to "to extend her notoriety."
Talk about painting a beauty as a beast!