Former N.Y. legislator indicted on insurance fraud, other charges

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A former Suffolk County, N.Y., lawmaker was indicted for the second time in two months, the most recent for alleged theft of insurance money paid to reconstruct a beach house destroyed in a fire.

scalesbalanceGeorge Guldi, 56, pleaded not guilty in court to a four-count indictment, charging him with third-degree insurance fraud, second-degree grand larceny, second-degree criminal possession of a forged instrument and second-degree forgery, according to the Suffolk County (N.Y.) District Attorney’s Office.

In November 2008, a fire at Guildi’s Westhampton Beach, N.Y., home destroyed the structure. Money to reconstruct the home from his insurance provider, $853,000, was to be held by the lender in escrow, but the lender never received the check, according to District Attorney Thomas Spota.

Spota said in a statement that Guldi allegedly deposited the check, “with the forged endorsement of Countrywide Home Loans,” into his own bank account.

If the beach house was not rebuilt, Countrywide, who holds the $1.4 million mortgage on the property, would have applied the money to the outstanding balance due.

Last month, Guldi was arraigned on a 110-count indictment alleging involvement in an $82 million mortgage fraud scheme. He and 16 other co-defendants are charged with defrauding lending institutions by using forged documents, false employment and income information on mortgage applications, straw buyers, false powers of attorney, deed flipping and mortgage stacking.

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