Wednesday, August 12, 2009

Straw Buying and Phantom Bank Balances Lead to $80M Long Island Mortgage Fraud

Former Suffolk Legis. George Guldi, 56, of Westhampton Beach, pleaded not guilty Tuesday in a Riverhead courtroom to 23 counts of a 130-count indictment against him and 16 others. The scheme involved the fraudulent purchase of 60 homes from Cold Spring Harbor to Bridgehampton by straw buyers using fake employer information and phantom bank balances.

According to Newsday, the others included in the scheme include a dominatrix, her male personal assistant, two employees at her Manhattan sexual fantasy club and her 65-year-old mother.

Prosecutors say that some of the straw buyers have pleaded not guilty in the fraud scheme.

DA: Guldi mortgage fraud scheme 'more expansive'

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