Guldi Released Without Bail As Prosecutors Appeal Ruling That Threw Out Felony Conviction - 27 East

Guldi Released Without Bail As Prosecutors Appeal Ruling That Threw Out Felony Conviction

authorKate Riga on Jul 13, 2017

Former Suffolk County Legislator George Guldi is free for the first time in six years, released on his own recognizance late Wednesday morning after a court overturned his March 2011 conviction on felony grand larceny and insurance fraud charges stemming from the destruction of his former family home in Westhampton Beach nearly a decade ago.

On Wednesday, prosecutors said they will appeal last week’s state appellate court ruling. The appeals process is expected to take about eight weeks.

Mr. Guldi, who turned 64 on Tuesday and has been imprisoned since 2011, must return before State Supreme Court Justice Mark Cohen on September 13. If the prosecution’s appeal is denied, Mr. Guldi would then be re-arraigned on the two felony counts and faces a new trial.

As part of his release, Mr. Guldi will be living with a cousin somewhere in Suffolk County as the appeal process proceeds, according to prosecutors. They declined to provide an exact address.

“It’s a nice day for a walk outside,” said Mr. Guldi, who was dressed in khaki pants and a white button-down shirt, immediately upon exiting the Riverside courtroom shortly after 11 a.m. on Wednesday with his cousin, Tom Guldi, and attorney Michael Scotto. “Look, a tree!”

Wednesday’s court proceeding took about 20 minutes after the prosecution revealed that it would delay arraigning Mr. Guldi on the felony counts a second time.

Mr. Guldi said the first thing he intends to do is visit his children, though he, his cousin and Mr. Scotto could be overhead making plans to first stop at a luncheonette. Wednesday’s court hearing comes exactly one week after a state appellate court threw out the disbarred attorney’s March 2011 conviction, in which he had been found guilty of misappropriating more than $860,000 in insurance money that was supposed to be used to rebuild his Griffing Avenue home. It later went into foreclosure and was torn down by the village in 2015 after becoming an eyesore.

Mr. Guldi had been serving a four- to 12-year sentence at the Marcy Correctional Facility in upstate New York for his crimes.Robert Clifford, a spokesman for Suffolk County District Attorney Thomas Spota, emphasized on Tuesday that prosecutors had established Mr. Guldi’s guilt “beyond a reasonable doubt” for the grand larceny and insurance fraud charges.

Handed down on Wednesday, July 5, and in response to a pair of appeals filed by Mr. Guldi from prison, the ruling states the Suffolk County Criminal Court made a “reversible error” when it denied his attempts to have a prospective juror—an employee of the insurance company that cut Mr. Guldi a check that was supposed to cover the rebuilding of his home—removed from the trial.

The ruling goes on to state that Mr. Guldi—who has already served the maximum three-year sentence for his role in an unrelated $82 million mortgage fraud scheme that targeted dozens of homes, most on the East End—had a right to a new trial, if prosecutors opted for one.

He had been twice denied parole, with the latest rejection occurring in October 2016. At his last hearing, board members cited Mr. Guldi’s lack of remorse for his crimes as the main reason for their denial.

Edward Guldi—the son of George Guldi, and a 34-year-old attorney from Sound Beach—said on Friday that he was waiting for a decision from the DA’s office regarding the grand larceny and insurance fraud charges.

Terri Scofield, a paralegal, longtime friend and ex-fiancée of Mr. Guldi, said on Tuesday that she believed the DA’s office would opt not to retry the case. “I can’t imagine that they’re in any shape to hold him,” she said. “The case is a decade old; we already know their strategies. I very much doubt that he’ll be retried.”

In the July 5 ruling handed down by the State Supreme Court’s Appellate Division, 2nd District, the unnamed juror—dubbed “prospective juror No. 16”—was also identified as an employee of the American International Insurance Company, or AIG. AIG paid Mr. Guldi and Countrywide Home Loans $864,373.30 to cover the loss of Mr. Guldi’s home at 9 Griffing Avenue in Westhampton Beach, which burned down on November 30, 2008. Mr. Guldi’s indictment charged that he stole the funds by forging Countrywide’s endorsement on the insurance check and depositing it into his personal account. The account had a fraction of the funding left when it was finally frozen by authorities.

The appellate court, meanwhile, denied a separate attempt by Mr. Guldi to have nearly three dozen counts of intent to fraud and grand larceny dismissed on the same grounds, ruling that the former attorney waived his right to appeal those charges when he accepted a plea deal while being prosecuted on the separate $82 million mortgage fraud case. Mr. Guldi, who served as his own attorney, pleaded guilty to 34 criminal counts just as jury selection was beginning in August 2011. He was sentenced to between one and three years in prison by Suffolk County Judge James F.X. Doyle, and that sentence was supposed to run concurrently with the four to 12 years he received for his prior conviction.

“With regard to the judgment rendered August 31, 2011, the record sufficiently demonstrates that the defendant knowingly, voluntarily, and intelligently waived his right to appeal,” the ruling reads. “Moreover, contrary to the defendant’s contention, his plea of guilty was not induced by the County Court’s explicit promise that he would receive a lesser sentence to run concurrently with the sentence previously imposed with respect to the judgment rendered on March 21, 2011, as the court clearly informed him that the plea would stand regardless of whether the previously imposed sentence was vacated.”

Last week’s decision specifically tosses two felony charges—second-degree grand larceny and third-degree insurance fraud—filed against Mr. Guldi after prosecutors charged he misappropriated more than $860,000 in funding that was supposed to be spent on rebuilding his Westhampton Beach home. The cause of the fire was ruled accidental by authorities. The house, which remained an eyesore for years, fell into foreclosure and was finally demolished by Westhampton Beach Village in March 2015.

Specifically, the appellate court ruled that the unnamed juror “did not provide a completely unequivocal assurance that she could be fair and impartial” during the first round of jury selection. The decision notes that she “conceded” that there could be a “conflict of interest” if she were seated for Mr. Guldi’s trial. The court also denied Mr. Guldi’s challenge without asking her further questions about her employment, or how her professional status might affect her judgment. Mr. Guldi had exhausted all of his juror challenges by that time.

As for Edward Guldi, he says his father is planning for all possible outcomes, adding that “we are still in the dark about [the] retrial.”

You May Also Like:

Southampton Animal Shelter Working To Make Life Better for Bunnies

Over the years, common knowledge and accepted ideas about the best ways to care for ... 12 Jul 2025 by Cailin Riley

Scuttlehole Road Closed After Crash Friday

Scuttlehole Road in Bridgehampton has been closed following a car accident. Southampton Town Police and emergency responders are on the scene. The road is expected to be closed for a significant period of time Friday afternoon. 11 Jul 2025 by Staff Writer

A Trailblazer: Professor Karl Grossman Retires, but the Work Continues

Inside The Cleveland Press newsroom of the 1960s, one word sent Karl Grossman running: “Copy!” ... by Michelle Trauring

Federal Funding for Public Media Is Close to Becoming a Thing of the Past | 27Speaks Podcast

President Donald Trump issued an executive order on May 1 instructing the Corporation for Public ... 10 Jul 2025 by 27Speaks

Developer Proposes 40 Affordable Apartments, Retail Stores in Riverside, Seeks $2.4M Grant From Southampton

An affordable housing developer who has worked with Southampton and East Hampton towns on several ... by Michael Wright

Korey Williams, Longtime Teacher and Lifetime Westhampton Beach Hurricane, Retires After 32 Years

Some teachers spend their entire career at one school. For a select few, they spend ... 9 Jul 2025 by Dan Stark

Let's Make a Deal

Since his swearing-in in January 2023, U.S. Representative Nick LaLota hasn’t faced a series of votes that rivaled the recent domestic spending package, which he played a significant role in pushing through Congress and onto President Donald Trump’s desk. It gave him a notable win: He proudly says he delivered on his promise to 1st District voters that he would get a reprieve on the federal government’s cap on the state and local tax deduction, or SALT. Ultimately, that’s true, with an asterisk. But it’s fair for voters to ask: At what price? Did a single-minded focus on this goal ... by Editorial Board

Stony Brook Medicine, UnitedHealthcare Reach New 3-Year Deal To Maintain Coverage

Stony Brook Medicine and UnitedHealthcare have inked a new three-year contract that will maintain coverage of visits to Stony Brook Southampton Hospital and Meetinghouse Lane Medical physicians for those with UnitedHealthcare or Oxford insurance plans. The agreement was announced just a day before the expiration of a temporary extension of the previous agreements announced in June, when the state’s largest insurer began notifying its customers that Stony Brook’s hospitals and doctors would be out of network coverage soon. “There will be no interruption in coverage for any of our United/Oxford patients,” Stony Brook announced in a statement this week. “We ... by Michael Wright

GOP-Backed Candidates Knock Democrats Off Working Families Party Line in Primary Shake-Up

Absentee ballots that came in after last month’s primary voting bumped Democratic Party candidate Tom Neely from the Working Families Party line for the November ballot. Even though Neely had a one-vote lead after ballots from early voting and the June 17 primary day were tallied, 11 additional absentee ballots, which all went to challengers Ieshia Galicia and Andrew Smith, put the two first-time political candidates over the top for the tiny party’s line with 23 and 21 votes, respectively. A Working Families Party challenger to the Working Families Party’s official endorsement for town clerk, Mark Bernardo, had trailed his ... by Michael Wright

PSEG 'Storm Hardening' Power Lines in East Quogue This Summer

Crews from PSEG-Long Island will be conducting “storm-hardening” work on electrical transmission lines and circuits in East Quogue throughout the remainder of the summer as part of the company’s Power On initiative to improve reliability and resiliency in the face of severe storms. Crews will be replacing and upgrading mainline circuits along Spinney Road between Lewis Road and Serenity Place, along Lewis Road between Old Country Road and Quogue-Riverhead Road and on Damascus Road. The work is expected to take about two months to complete, PSEG said. “PSEG Long Island is committed to strengthening the electric infrastructure and improving reliability ... by Staff Writer