by Chris Peterson
A Broadway producer of the Tony-winning musical, The Outsiders, has been sentenced for fraudulently obtaining over $69,000 in COVID-19 recovery grants by submitting falsified records, Brooklyn District Attorney Eric Gonzalez announced this week.
The defendant, Suzanne Gilad, pleaded guilty to second-degree falsifying business records. She was sentenced by Brooklyn Criminal Court Judge Janet McDonnell to a conditional discharge and ordered to complete 210 hours of community service. Gilad has already repaid the state for the stolen funds, according to the DA’s office.
Gilad has been a producer on other shows such as Moulin Rouge, Buena Vista Social Club, and the recent revival of Merrily We Roll Along.
Between December 2021 and January 2022, prosecutors said Gilad filed multiple fraudulent applications for New York State’s Empire State Development grants—programs designed to help businesses that suffered financial losses during the COVID-19 pandemic. She submitted falsified tax returns on behalf of three companies she controlled—In Fine Company LLC, Custom Broadway LLC, and All the Josh Cohens LLC—and ultimately funneled the funds into her personal accounts.
DA Gonzalez underscored the seriousness of the crime, stating:
“This defendant took advantage of a public health crisis by falsifying records to secure government aid that was meant to keep struggling small businesses afloat. My office will continue to investigate and prosecute those who attempt to enrich themselves through fraud at the expense of programs designed to protect New Yorkers.”
New York State Inspector General Lucy Lang added:
“Abuse of scarce state resources — during the pandemic and always — is a crime against both government and New Yorkers in need. Thank you to our partners at the Brooklyn District Attorney’s Office for sharing our commitment to public integrity and to ensuring accountability for those who undermine it.”
The case was prosecuted by Assistant District Attorneys Kirsten Tamayo and Adam Libove, with oversight from the DA’s Public Integrity Bureau and Investigations Division.
There’s no way around it: this sentence feels like a slap on the wrist. Fraud of this kind isn’t just a matter of paperwork gone wrong — it’s theft from the very people the system was designed to help. These relief grants were lifelines for small businesses hanging by a thread during the pandemic. Every dollar diverted into a personal account was a dollar that didn’t go to a business owner trying to pay employees, cover rent, or simply keep the lights on.
While restitution and community service are important steps, they don’t erase the deliberate choice to falsify records across multiple companies. This wasn’t a one-time lapse in judgment; it was a calculated attempt to siphon off nearly $70,000 in public money. A conditional discharge sends the wrong signal. It suggests that if you get caught, paying the money back and logging some hours of service is enough to wipe the slate clean.
New Yorkers deserve better. Fraud against public trust, especially during a crisis, should carry meaningful consequences. Accountability must extend beyond reimbursement; otherwise, we risk normalizing the idea that stealing from programs designed to protect the vulnerable is a low-risk gamble.
The pandemic exposed both the best and worst of human behavior. If we’re serious about protecting integrity in public programs, then sentences in cases like this must reflect the seriousness of the crime, not just the paperwork of the plea deal.
