News Summary
Sue Gilad, a Broadway producer, has been convicted in Brooklyn for falsifying tax records to secure nearly $69,000 in COVID-19 relief funds. Gilad, who controlled three production companies, inflated her profits to access financial assistance through the Pandemic Small Business Recovery Grant Program. As part of her sentence, she must complete 210 hours of community service and has already repaid the state. This case highlights the misuse of state resources during a crisis, raising concerns about the integrity of assistance programs meant to support legitimate businesses.
Brooklyn – Broadway producer Sue Gilad has been convicted for falsifying tax records in a scheme to fraudulently obtain COVID-19 relief funds. The conviction took place in Brooklyn Criminal Court, where Gilad pled guilty to inflating her companies’ profits to secure financial assistance during the pandemic.
As a result of her actions, Gilad has been sentenced to complete 210 hours of community service and has already reimbursed the state for the funds she fraudulently claimed. Between December 2021 and January 2022, she submitted multiple falsified grant applications to Empire State Development, the economic development agency of New York. Through these fraudulent applications, Gilad, who controlled three production companies—In Fine Company LLC, Custom Broadway LLC, and All the Josh Cohens LLC—secured approximately $69,000 in aid. Subsequently, she transferred the received funds to her personal bank accounts.
The financial assistance was part of New York’s Pandemic Small Business Recovery Grant Program, which allocated $800 million to assist small businesses and cultural institutions that had suffered financial setbacks due to the pandemic. While the program aimed to provide crucial support, it has faced scrutiny and allegations of abuse, resulting in multiple investigations. Over 41,000 applicants received funding under this initiative, with average awards around $18,000.
However, an audit revealed a troubling statistic: approximately $4.1 million was awarded to ineligible businesses that had previously received assistance from federal programs. Nationally, the U.S. Small Business Administration issued around $1.2 trillion in emergency grants and loans during the pandemic, and as of early 2023, reports indicated that $36 billion of those funds were likely obtained through fraudulent means.
Gilad is a well-known figure in the Broadway community, having won five Tony awards for her contributions to productions such as “Moulin Rouge!” and “The Outsiders.” To date, she has produced a total of 17 Broadway shows, with her recent projects including “Smash” and “The Who’s Tommy.” Despite her accolades in the theatre world, her recent actions have cast a shadow on her career.
The prosecution has stressed the seriousness of fraud related to COVID relief funds, with Brooklyn District Attorney Eric Gonzalez emphasizing the importance of accountability in such matters. Additionally, Inspector General Lucy Lang highlighted that the misuse of state resources, particularly during a crisis, constitutes a crime against the people of New York. Such actions erode public trust and the integrity of assistance programs designed to support those in need.
The ongoing challenges faced by the small business recovery program underline the complexities of providing financial aid during unprecedented circumstances. As investigations continue and lessons are learned, the focus remains on ensuring that support reaches legitimate businesses and cultural institutions genuinely in need of assistance.
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HERE Resources
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Additional Resources
- Crain’s New York: Sue Gilad Convicted of COVID Relief Fraud
- TheaterMania: Broadway Producer Sentenced for COVID-19 Fraud
- BroadwayWorld: Sue Gilad Sentenced for COVID Relief Fraud
- The Globe and Mail: Broadway Producer Closes the Curtain on Condo
- New York Times: Broadway Tax Subsidy Credits
- Wikipedia: COVID-19 Relief Funds in the United States
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NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
