Ex-Suffolk lawmaker's fraud trial begins

Defending himself against insurance fraud charges Tuesday in Suffolk County Court, former Suffolk lawmaker George Guldi ridiculed the allegations against him and said prosecutors had accused him of "taking my own money"

Guldi, a former Democratic Suffolk County legislator, told jurors during opening arguments that he was the sole owner of a Westhampton Beach house that was destroyed by fire in November 2008. He has pleaded not guilty to grand larceny, forgery and insurance fraud.

Prosecutors contend Guldi had taken out a second mortgage on his house in 2005 and still owed money on the loan. He is accused of stealing from insurance giant AIG by forging the bank's endorsement on an AIG check for $853,000 that he deposited into his account, spending all but $163,000. The check was an insurance payment after the fire last November, and it needed a dual endorsement from his mortgage lender.

"This insurance check was my money - not the bank's," Guldi told jurors. "They're prosecuting me for taking my own money."

Guldi, an attorney who acknowledges he has little experience trying cases, said he was forced to represent himself because prosecutors froze his bank accounts.

In her opening statement, Assistant District Attorney Thalia Stavrides said Guldi stole the insurance money because he had faced mounting debts before the fire She has said the money was to be used for demolition, cleanup and reconstruction.

She warned jurors to be wary of Guldi's claims that he was the sole owner of the home. "Don't let the smoke get in your eyes," Stavrides said.

Then Guldi ridiculed the charges. "Now for something completely different," he said, quoting the Monty Python Flying Circus comedy troupe. He peppered his 12-minute opening statement with one-liners.

Then, accusing prosecutors of serving the interests of AIG and the banking industry, he added derisively: "Your tax dollars at work."

Guldi also faces a separate trial later this year on charges he participated in a $82-million mortgage fraud scheme.

He told jurors he was charged with insurance fraud to weaken his ability to defend himself in the mortgage fraud case. "This case actually has nothing to do with this case," he said.