Former LI Congressman George Santos' guilty plea could affect his ability to pay forfeiture sum, attorney says

Former Long Island Congressman George Santos, who admitted falsely bolstering his financial standing as he ran for Congress when he pleaded guilty Monday to wire fraud and identity theft charges, has to forfeit some $205,000 to the federal government before he is sentenced next year as part of his plea agreement.

But Santos' new status as a felon could hurt his effort to pay the money, which is due 30 days before his sentencing date of Feb. 7, said his attorney Joseph Murray, who raised the issue during the plea.

"He's going to do the best he can to make it," Murray told the court as he sought assurances that the government wouldn't seek additional sanctions against Santos if he fails to pay by the deadline. Murray said he didn't know "the negative effects of this proceeding" on Santos' future earning power.

U.S. District Judge Joanna Seybert, reacting to the possibility that Santos won't make the payment by the deadline, told Murray on Monday: "I see substantial problems if he can't comply."

Santos lost his $174,000 annual congressional salary when the indicted lawmaker was ejected from his seat last year and now describes himself as an "opinion writer at large" on his bio on X, formerly Twitter, which also includes links to his account on Cameo, the private video sharing app, and an email for bookings.

When asked about Santos’ current employment on Monday, Santos defense attorney Andrew Mancilla said his client is working "several gigs."

Asked by a Newsday reporter to clarify, Mancilla said Santos is writing for the South Shore Press newspaper, a Shirley-based weekly focused primarily on local politics.

Current South Shore Press news director Stefan Mychajliw previously worked for Big Dog Strategies, a national political consulting firm that worked with the Santos campaign in 2022.

 Mychajliw, whose X account notes he did communications for former Republican presidential candidate Vivek Ramaswamy and quotes a Buffalo publication calling him a "right wing culture warrior," did not respond to a direct message on social media seeking comment and could not be reached by phone. 

On two occasions this week, Santos tagged the South Shore Press account on X and encouraged his nearly 135,000 followers to check out the publication and read his new weekly column, "Raw George." An image of Santos filled the top of the South Shore Press website Tuesday morning, along with his column. While the column remained in the top spot on the website, the image was later replaced with a stock photo of a golden fist.

"If you’re not following the South shore (sic) Press, you’re missing out!" the former congressman wrote on the same day he pleaded guilty.

The South Shore Press X account launched in March and has 153 followers as of Tuesday morning. 

The newspaper has a weekly print run of 5,000 copies, with a $35 annual subscription rate, according to a May filing with the United States Postal Service.

An accounting report filed in Suffolk County Supreme Court earlier this month in connection with ongoing litigation between the newspaper and its previous owner, former county legislator Fred Towle, shows the publication paid $138,700 in total contract labor expenses in 2023.

Towle, who according to court records was to remain with the paper in a consultancy role this year, resigned from the legislature in 2003 after admitting to taking bribes and pleaded guilty in federal court in 2018 to $1.2 million in income tax evasion relating to his marketing company. 

Santos also has seen his fee on Cameo, where fans were reportedly paying $599 each for one of his videos after his ouster from Congress, nose-dive to $99. His bio there refers to Santos as a "former congressional 'icon!' " accompanied by a fingernail painting emoji.

Prosecutor Ryan Harris was noncommittal when asked for assurances by Murray that the government would not seek penalties against Santos.

Santos attorney Robert Fantone said afterward: "If he doesn't have enough money, it goes into a judgment, that's pretty standard. And quite frankly, I think we'll be able to do it. But if he needs more time to do it, he'll be trying to get the money together and if we don't have it in time for sentencing, that's why we asked would the court entertain an adjournment." 

Santos faces at least 2 years in prison on the identity theft charge and an additional 7 years on the wire fraud charge.

Seybert reminded Santos on Monday that under federal law, his restitution and criminal forfeiture fees could not be written off in any potential future bankruptcy filings. His property could be seized and liquidated, she warned.

"I do appreciate you are our judge for sentencing; it's not you, your honor," Murray told Seybert, as he expressed frustration with the prosecution. 

Seybert, a veteran judge who was nominated to the federal judiciary in 1993 by President Bill Clinton, has sometimes strayed well below federal guidelines in sentencing criminal defendants convicted of white-collar crimes.

Last year, Seybert sentenced the ringleader of a $30 million fraudulent mass-mailing scheme to 2 years probation, although he faced up to 20 years in prison — a sentence she acknowledged as a "tremendous break."

And earlier this year, Seybert sentenced a Hauppauge man who admitted bribing a government official for nearly $1 million in federal contracts to six months of home detention and 2 years' probation, despite the government's proposed guideline sentence of 12 to 18 months in prison.

"I can't do it," Seybert said from the bench, calling the roughly 10 months in prison that the defendant would have served "too much." 

One hundred and sixty defendants were sentenced in the Eastern District of New York in 2023 following convictions for fraud, theft or embezzlement cases, with 63% of those proceedings resulting in prison time, according to data from the U.S. Sentencing Commission. Just 34 of those cases ended with a sentence within guideline range.

Before sentencing, both the government and the Santos defense team will make sentencing recommendations to Seybert along with the U.S. Probation Department. The judge also noted Monday that she anticipates Santos' attorneys may dispute a government contention that he acted as a ringleader in his schemes, an open issue that would likely be addressed before or during sentencing. 

Santos' restitution to his victims breaks down as $178,402.97 to the victims of the party program scheme; $120,700 to the victims of the credit card fraud scheme; $50,000 to the Redstone fraud scheme victims; and $24,647 in connection with the unemployment fraud.

Santos’ personal finances have been under intense scrutiny since even before he took office, following the December 2022 report in The New York Times that began to expose the series of lies.

Santos stipulated during his plea hearing Monday to previously charged allegations he filed false statements with the Federal Election Commission and the U.S. House of Representatives, admitting he falsely claimed a $750,000 salary from the Devolder Organization and inflated assets in a checking and savings account by more than $1 million each.

He also admitted he did not disclose to Congress $28,000 in 2021 income received from a Florida investment firm or $20,000 in unemployment benefits he received while employed by that firm.

"It's clear to me now that I allowed ambition to cloud my judgment, leading me to make decisions that were unethical," Santos said Monday.
Santos' comments outside were briefly disrupted by a protester who broadcast a song from pop star Meghan Trainor, in which she sings: "If your lips are moving, then you're lyin', lyin', lyin', baby."

Asked by a Newsday reporter how he planned to pay the forfeiture as he made his way into the front passenger seat of a black Kia Telluride with New York plates, Santos remained silent.