Ex-attorney in Va. Beach guilty of stealing from estate - The Virginian-Pilot
NORFOLK
A federal court jury Monday convicted former Virginia Beach attorney Brian Gay of nine counts of fraud and related charges, finding that he bilked about $400,000 from the estate of a deceased client.
The family of Daniel M. Woodside, who died in 2006, spent years seeking justice against Gay. They filed complaints with the state bar and a civil suit in Virginia Beach before turning to federal authorities.
The jury found Gay guilty of nine counts of mail fraud, wire fraud, money laundering and making false statements. They determined that he stole about $400,000 from two of Woodside's life insurance policies - money intended to go to Woodside's three children.
Woodside's ex-wife, Carla Gordon, who led the fight against Gay, said her efforts weren't about getting the money back because the family knew it was gone.
"The fight was for a man who was not here to fight anymore," she said after the verdict.
After the verdict, U.S. District Judge Raymond A. Jackson revoked Gay's bond. Marshals led Gay away in handcuffs. He will be sentenced Jan. 23.
Gay, 52, was an attorney who handled criminal and civil matters from an office at 3500 Virginia Beach Blvd. The bar revoked his license amid this and other missteps.
Gay's defense team, assistant federal public defenders Keith Kimball and Phoenix Harris, declined to comment.
Kimball told the jury during closing arguments Monday morning that the government's case was based on speculation.
"In our society, you don't send someone to prison based on speculation," he said.
Federal prosecutors Robert Seidel and Katie Dougherty presented volumes of evidence laying out the fraud and Gay's attempts to cover it up. They declined to comment after the verdict.
During the trial, prosecutors presented to the jury an "irrevocable trust" that stated Woodside's children were to receive the proceeds from the life insurance policies as well as the proceeds from the sale of his home and his retirement account, totaling around $600,000.
Gay testified Friday that Woodside "absolutely without a doubt" named him the beneficiary of the two life insurance policies. He said he never told anyone in Woodside's family because "it was confidential" attorney-client privileged material.
" 'This is what I want to do, I'm sure,' " Gay said Woodside told him three days before he died in April 2006.
On that day, Woodside tore up the irrevocable trust in front of Gay and another friend, Gay said, adding that Woodside had destroyed at least eight previous versions. Woodside handed Gay a letter naming him the beneficiary of the life insurance policies.
But Gay said he didn't fully understand what the letter meant until two months later, while on his honeymoon. On the trip, he opened another letter from Woodside, which Gay said contained "confidential directives" as to how to pay out his estate.
Woodside's children, the directives state, were only to get the proceeds of the sale of Woodside's house and his retirement account. Gay said over the course of the next several years he paid the three children more than $200,000 toward tuition, a car, health care, school supplies and other items. The government acknowledged that was correct.
On cross-examination, Seidel asked Gay if he recalled swearing to tell the truth.
"Without question," Gay answered.
The exchange often grew heated, with Gay barking one-line responses to Seidel's questions, while at other times rambling on until the judge cut him off.
Gay acknowledged making some mistakes on forms but said it was "unintentional" and not "willful."
"Mr. Gay, let's be honest," Seidel began the next question.
"Sir, I object to your implying otherwise," Gay responded.
Seidel and Dougherty told the jury that Gay drained Woodside's accounts and then tried to cover up the fraud when the family began asking questions.
The government said Gay used the money to buy a home in Naples, Fla., and two motorcycles.
Prosecutors are seeking to seize that property as well as whatever cash Gay has in the bank.
Tim McGlone, (757) 446-2343, tim.mcglone@pilotonline.com
18 Oct, 2011--
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