Westhampton Beach - A former Suffolk County Legislator, George Guldi, indicted last month for his alleged role in a multi-million dollar mortgage fraud scheme, was arraigned today on a second indictment charging him with insurance fraud, forgery and other crimes related to the theft of insurance money paid to reconstruct his Westhampton Beach home destroyed by fire in November of 2008.

Guldi, 56, pleaded not guilty this morning in Suffolk County court to a four-count indictment charging the ex-lawmaker with third degree insurance fraud, second degree grand larceny, second degree criminal possession of a forged instrument and second degree forgery.

The money, approximately $853,000, was to be held by the lender in escrow for the reconstruction of the home and other expenses.

"The lender holding the $1.4 million mortgage on Guldi's home never received or endorsed the check issued by the insurance company to pay for the reconstruction of the house at 9 Griffing Avenue in Westhampton Beach," District Attorney Thomas Spota said. "The defendant is charged with depositing the check, with the forged endorsement of Countrywide Home Loans, into a bank account that he controlled."

If the house was not rebuilt, Countrywide Home Loans Inc. as the mortgagee would have applied the insurance money to the outstanding mortgage of $1.4 million dollars.

Judge James F.X. Doyle extended Guldi's current $500,000 bond posted by the defendant following his arraignment last month on a 110-count indictment alleging his involvement in an $82 million dollar mortgage fraud scheme. In that case, Guldi and 16 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.