Pedro Espada, Jr.
New York State Senate Majority leader, Pedro Espada Jr., is battling charges that he stole more than US $14 million from a charity he runs that gets taxpayer funds, claiming the indictment is “political payback” for helping Republicans stage a coup last year against the Democrat-controlled Senate.
The civil lawsuit, filed by New York Attorney General Andrew Cuomo on Tuesday, charges Espada abused the non-profit Soundview, which he set up to deliver health care services to his constituents in the Bronx.
The charges in the suit include:
-
Andrew Cuomo
Espada was able to include in a 2005 contract an unconditionally guaranteed severance package worth an estimated $9 million, an amount that Cuomo said would force the charity into bankruptcy.Espada allegedly used US$80,000 in non-profit funds to pay for 650 meals for him and his supporters, including more than US$20,000 from two sushi restaurants that regularly delivered to the senator’s Mamaroneck home.
- Espada also created a janitorial services company headed by his son, Pedro Gautier Espada, who allegedly rigged bids to ensure that the company won a contract worth US$400,000 annually from Soundview.
- The charity allegedly paid for “purported business trips” made by Espada and his family to Miami, Las Vegas and Puerto Rico.
- Soundview also “routinely pays”
for campaign expenses charged to Espada’s American Express card, including charges in the final month of the 2008 primary for the state Senate. - Espada used Soundview employees in his re-election campaign.
- Soundview provides Espada with a US$2,500 monthly housing allowance for a second home, a Bronx co-op which the senator claimed as his legal residence during his 2008 campaign.
- While Soundview failed to pay US$700,000 in federal payroll taxes in 2008, it did pay for Espada’s credit card charges, including US$250,000 in personal expenses, because of a directive to pay the senator and his family “before any other vendor or financial obligation.”
Soundview, the non-profit
The suit also names Soundview’s chief financial officer Kenneth Brennan and 18 other current and former officers and directors. Cuomo says the non-profit is “packed with Espada’s family, friends and Senate employees.”
In his press conference announcing the suit, Cuomo hinted that criminal charges may file this civil lawsuit.
Espada lashed back at the suit, saying it was the result of “political payback” for his helping Republicans stage a Senatorial coup last June. Both he and fellow Democrat Hiram Monseratte jumped sides and helped the Republicans regain majority in the Senate.
Espada makes is case at a press conference Tuesday
Monseratte, who was convicted of slashing his girlfriend’s face, went back to his old caucus, leaving the balance of power dead even, 31-31. This forced governor David Patterson to appoint a Lieutenant Governor, who would vote in the case of a split vote.
The legislative stalemate dragged on beyond the end of the 2009 legislative session and was only resolved after Espada returned to the Democrat side. He did so only after the Democrats agreed to make him majority leader.
Espada said Cuomo supported the coup to hurt Gov. David Paterson’s chances for election. He did not elaborate.
The Republican Party of New York on Tuesday issued a statement calling the allegations against its former ally “shameful.”
“Albany Democrats are so ensconced in a culture of corruption of their own making that they simply can no longer govern,” the state GOP said.
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You notice that Hiram Monserrate is directly behind him. You are known by the company you keep, maricon!!
I was thinking some of this could be explained until I got to the part where they were directed to give him the money before they paid any other vendors. Nah, they caught him. Nice post.