Key Witness Takes Stand in Guldi Trial

, a former Suffolk County legislator and Westhampton Beach resident, who is facing four charges including insurance fraud, grand larceny, forgery and criminal possession of a forged instrument, appeared for another dramatic day of proceedings before Judge James F.X Doyle at the in Riverside on Thursday. During the session, an eagerly anticipated witness took the stand, Ethan Ellner.

 12:45 p.m.

Proceedings began later than originally scheduled, due to heavy snow that had blanketed the area.

Judge Doyle enters the courtroom, which was far more crowded than usual. Many onlookers were discussing whether Ellner would appear and if a motion would be made to quash Levy’s subpoena.

A burning question during the trial has been whether the name of the high-powered county official would be revealed during court proceedings with much of that speculation pointing to Suffolk County Executive Steve Levy. According to Newsday, Levy was subpoenaed to discuss an alleged bribe, in the form of campaign donations that key-witness Ellner said he gave to Levy in return for county work.

Christopher Brocato, the court-appointed legal advisor to Guldi, said, “We can’t name the Suffolk County official involved in the bribery. It was basically a pay-to-play situation. Campaign contributions for continued business.”

He went on to explain that the defense was instructed that they could ask about events that transpired, but not name the individual.

“We can ask, ‘Did you contribute and when,’ but not the who,” he said.

Brocato said he believes there is an “ongoing investigation” about the “pay-to-play” issue, based on the fact that Suffolk County District Attorney Tom Spota’s government corruption bureau chief Christopher McPartland was in the courtroom Thursday and on other occasions.

Before the jury entered the courtroom, the judge entertained a discussion regarding an oral application made a few days ago by Assistant District Attorney Thalia Stavrides. Her application looks to quash Levy's subpoena.

Guldi objected to her application saying that it seems she made it on behalf of the county and it looks as though the ADA is acting on behalf of the county official’s “personal interests.”

Stavrides asked for a copy of Guldi’s affidavit in opposition to the oral application.

“If you want to play with the papers, play with the papers,” Doyle said. “This is a courtroom.”

The judge then said that a firestorm of media attention has been fueled by the alleged bribe and Levy's subpoena and he will make a decision on it Friday afternoon. He then dismissed everyone in the courtroom for lunch with instructions to return at 2:10 p.m.

2:15 p.m.

Doyle welcomes the jury and said that they, “should get an award for getting here” in the snowy conditions.

2:25 p.m.

Witness Ethan Ellner takes the stand.

Stavrides asked Ellner about his age, education, and career experience. Currently, he said he works in sales, but was formerly an attorney whose work centered on house closings and other real estate related matters. Ellner said he had been employed by Suburban Abstract, doing work as a title closer.

After Stavrides asked why Ellner was no longer practicing law, he said he was disbarred in December 2009 when he pleaded guilty to five or six felonies.

“Was it five or six?” Stavrides asked.

Ellner said he believed it was five.

Stavrides asked whether Ellner he had prior criminal convictions. Ellner said he had and had pleaded guilty to one count of attempted tax evasion of federal income tax, a misdemeanor. He said he spent 28 days in a federal halfway house in Brooklyn; had worn an ankle bracelet for a period time and also been on probation. His license to practice law was suspended at the time and later re-instituted, until he pleaded guilty to the felonies, to which he has not yet been sentenced.

Stavrides asked if they are all “non-violent crimes.”

Ellner said they were.

When asked if he had been made aware that he could serve time consecutively for the crimes, Ellner said he was.

Stavrides asked about Ellner’s cooperative agreement with the Suffolk County district attorney’s office, asking if his testimony in the Guldi trial was included in the agreement.

“Yes,” Ellner said. “I was promised by the district attorney’s office that they would recommend a cap on my sentence no higher than three to nine years.”

Stavrides asked if Ellner could potentially receive less than three years. “It’s possible,” he responded. “My hope is to receive probation.”

Ellner said no other promises have been made to him by the DA’s office. When asked, he said $78,000 was forfeited from his bank account and would be distributed to the victims of crimes he had committed after his sentencing.

The witness was asked whether he had knowledge of the home located at 9 Griffing Ave; he said it belonged to George Guldi. He was then questioned about his relationship with Guldi.

Ellner said they met in 2002 and he engaged in a “business relationship” with Guldi, working together on in excess of 100 title closings.

After being shown evidence with his notary stamp on it, Ellner said he was at the refinancing of the Griffing Avenue property because the lender had requested title insurance and he was the title closer.

“How many times have you seen George Guldi sign his name in your presence?” Stavrides asked.

“Hundreds,” he answered.

Ellner was also asked about his personal relationship with Guldi.

“Over time we became friends,” he said. “We were pretty close.”

He said he knew Guldi’s children and that he invited Guldi to his wedding in November, but that Guldi did not attend.

“I thought he was broke,” he said.

Ellner said he believed Guldi was not planning to attend because he did not have money for a gift and he told Guldi that he didn’t need to bring a gift. He didn’t attend, and gave Ellner and his bride a photo album.

Stavrides asked if the two had socialized and Ellner said they would share meals before and after a closing occasionally. The ADA asked if the two had acquaintances in common; Ellner said yes, Donald MacPherson.

Testimony continued regarding an auction for a house in foreclosure. Ellner said he attended for Guldi, in which the winner needed to provide 10 percent of the winning bid in cash, with the rest payable in 30 days. Ellner said MacPherson was also involved in the transaction.

Ellner testified he went to Guldi’s office and took a ride in his Ford Excursion to the house on Griffing Avenue so Guldi could retrieve some items. During the trip, Ellner said Guldi told him that he received a check from the insurance company in an amount in excess of $800,000 payable to Countrywide Home Loans and George Guldi, and he was going to type Countrywide’s endorsement on the back of the check and take the check to New York City to deposit.

When asked if Ellner remembered seeing a typewriter in Guldi’s office, he said he did.

Stavrides asked if he said anything else on the matter at the time.

“I said, ‘Good luck with that, George,’” he responded.

Ellner testified that he saw the check, front and back, and that it said payable to both parties on the front. He said he also saw only Guldi’s signature on the back.

While at the Guldis' home, Ellner said Guldi retrieved some items from containers of fluid located on a small front porch or deck and they then went back to the office and he drove away.

“The entire incident lasted at most, a half hour,” he said.

“Did you ever speak again about the check?” Stavrides asked.

“No,” Ellner said.

He was then shown a copy of the check and said that an endorsement by Countrywide on the back wasn’t there when he saw it.

Questioning continued about Resources, Inc., a company that he said is owned by MacPherson. Also discussed was the auction of the home that was in foreclosure. 

Ellner said he wired funds from MacPherson, retrieved the bank checks from his bank and then gave it to Guldi.

According to Ellner, there was one check for $100,000 and two checks for $10,000 each. He said he delivered the funds to Guldi at his residence on Brushy Neck Lane.

Testimony continued involving that banking transaction, with checks made payable to the referee in the auction.

Stavrides asked Ellner about the Stony Brook office of Suburban Abstract, where, Ellner said, his 82-year-old mother worked.

Ellner said that after that office was searched by the district attorney’s office he decided to go to the DA’s office and discuss the possibility of cooperating in this case.

When asked what had prompted him to come to that decision, Ellner said, “I wanted to protect my mother. I didn’t want my mother to get arrested as a result of my criminal activities.”

Ellner’s mother was never arrested or indicted.

“I was told my mother was never a target,” he said.

Testimony continued, with Ellner saying he was involved with mortgage fraud, including fraudulent documentation to a lender. He described such activities, including a client involved with straw buyers and mortgages.

Stavrides asked if he had told the DA’s office about the check Guldi had allegedly received for the fire.

“Was the cooperation agreement reached as a result of that sit down?”

“Yes,” Ellner said.

When asked if he had lied in his deposition, Ellner responded, “I did not. I was evasive and I danced around but I did not lie.”

When asked about campaign contributions that would enable him to get work, Ellner said he had been asked to do that by someone, and that yes, he had done so.

“I thought it was necessary to do so to get work,” he said.

He said his understanding is that issue has no effect on his plea agreement.

“Did you tell George Guldi about that?” Stavrides asked.

“Yes,” Ellner said.

“What is your understanding about who came to the DA’s office with this information?” Stavrides asked.

“George Guldi,” he said.

Testimony continued regarding phone records.

Stavrides said she had nothing further.

Before Guldi began his cross-examination, the judge spoke to both men:

“I understand this is difficult for both of you. This is an important part of the trial. Both of you went to law school. Act courteously.”

The judge also reminded them they were not present to argue issues “outside of this trial.”

“We are trying the case here,” he said.

Despite the judge’s warning, with their first greeting, the judge stopped the pair and told them that “their discourse sounded sarcastic.”

Guldi asked Ellner, whom he said was a bodybuilder, if he was taking any steroids or human growth hormones, or if he had gotten a mail-order prescription.

“I have a mail-order prescription. I don’t know if they’re steroids. I’m not a chemist. I’m not a doctor,” Ellner said.

The judge told Ellner to answer the question of whether he took steroids or human growth hormones.

“I don’t know,” he said.

An ADA’s objection was sustained.

Guldi asked if Ellner was taking any medications that might affect his testimony.

“No, that I am aware of, no.” he responded.

Testimony continued.

“Isn’t it a fact in the course of dealing with clients that you obtained more than $3 million dollars?” Guildi asked.

“No,” Ellner said. 

Guldi asked if he took that $3 million and invested it in properties that he controlled.

“No,” Ellner said.

Guldi asked Ellner if he took proceeds from a closing — a closing at which Guldi was the attorney, but was not present.

Ellner said he did not understand the question.

Guldi asked Ellner if he “falsified documents,” took proceeds and put them into an escrow account, while he was in another court dealing with another issue. Guldi specifically referenced closings at a number of homes and told the judge that he was trying to establish which closing he was discussing.

“Did you steal $250,000 from that closing?” Guldi asked.

“No,” Ellner said.

As questioning continued, the judge told Guldi to move on.

Guldi questioned Ellner about the “hundreds of closings” they’d attended together and the times they’d spend together, asking if he remembered telling him “a lot of stories about your friend’s political adventures?’

Questioning continues involving a cell phone conversation and whether Ellner ever misplaced deeds in his law office.

A lengthy line of questioning involved the car trip to Guldi’s house, where he asked Ellner, if he remembered what was soaking in the liquid in containers on the porch or deck — antique pots — and details such as the materials used to construct the decking and the color of the house.

Guldi asked about the check and if Ellner remembered the color of the check.

Guldi then asked Ellner specifics about who questioned him at the DA’s office; how many meetings had been held; and if notes were taken.

Guldi says he’s requested complete notes from all those sessions and the ADA said all notes had been provided

More questioning involved phone calls between the two.

Testimony wrapped up with Guldi asking Ellner if it was a fact that a document was forged.

“No, that is not a fact,” Ellner said.

5 p.m.

Court recessed until Friday at 10 a.m.

Be sure to check back Monday for continuing coverage of the Guldi trial and in case you missed previous coverage, here are some links: