Espada, Son Charged With Stealing From Bronx Nonprofit
Updated 6:07 PM EST, Tue, Dec 14, 2010

State and federal authorities on Tuesday indicted outgoing New York Senate Majority Leader Pedro Espada on embezzlement charges.

The charges stem from allegations that Espada, who was defeated in the November election, embezzled more than $500,000 from the nonprofit health care network he operated in the Bronx.

New York Attorney General Andrew Cuomo and United States Attorney Loretta E. Lynch today announced a six-count federal indictment against Espada and his son Pedro Gautier Espada, 37, for stealing in excess of half a million dollars from Bronx clinics. Cuomo has charged Espada back in April with using the Comprehensive Community Development Corporation, known as Soundview, as his "personal piggy bank."

Read the indictment

The indictment charges that Espada and his son embezzled money from Soundview, which is a a federally-funded not-for-profit healthcare agency. The Espadas were charged with five counts of embezzlement and one count of conspiracy. Both are expected to turn themselves in on Wednesday.

Espada has strongly denied any wrongdoing. Espada's lawyer said Tuesday that "Today is a sad day for Soundview and a sad day for the Espada family....we intend to fight the charges in court."

According to Gov.-elect Cuomo, “Taxpayer funds meant for the sick and poor were instead used for Broadway shows, fancy meals, and other opulent personal expenses of Pedro Espada."

Even as allegations of embezzlement swirled, the politician -- who will be out of office this month -- reportedly continued to draw a $287,000 per year salary from the center.

He and his son are accused of spending up to $20,000 in center money on sushi delivery to their private residence and thousands of dollars spent on entertainment and show tickets. Other stolen funds allegedly went to fund pony rides at a relative's birthday party and a down payment on a Bentley.

If convicted, Espada and his son face up to 10 years in prison.
First Published: Dec 14, 2010 5:29 PM EST