Espada, son face 55 years

State Sen. Pedro Espada Jr. and his son, Pedro Gautier Espada, have been charged with embezzling more than $500,000 from the federally funded not-for-profit Soundview Healthcare Network, according to a grand jury indictment filed on Tuesday.

The soon-to-be former state senator of the 33rd District is accused of using money from his Soundview Healthcare Center — which he founded in 1978 — to pay for personal expenses, including $110,000 on personal meals for him and his family. 

If convicted, the two face a maximum sentence of 55 years, 10 years for each count of embezzlement and five years imprisonment for conspiracy. They also face a fine of $250,000 per count.

Mr. Espada, who was immediately stripped of his Democratic Majority Leader title, according to news sources, stands accused of spending money on window treatments, plumbing, heating and air conditioning work for his home in Mamaroneck, N.Y. The indictment alleges he splurged on tickets to the shows Mamma Mia, Jersey Boys, Mary Poppins, Radio City Music Hall Christmas Spectacular, a Neyo concert, a Kenny G concert, New York Nets games, New York Mets games and New York Yankee games.

The indictment includes a list of restaurants Mr. Espada charged to the Soundview American Express card. He allegedly spent $20,482 at Toyo Sushi in Mamaroneck, N.Y. between 2006 and 2009, as well as thousands of dollars at diners and Japanese restaurants in Mamaroneck, N.Y. and White Plains, N.Y. 

He allegedly used a Soundview American Express card for personal expenses as well as using a janitorial company he owns to divert funds from Soundview. The indictment also accuses him of paying himself, his son and other family members thousands of dollars in consulting fees, loans, gifts and reimbursements.

And he allegedly spent on others, too. Mr. Espada stands accused of using Soundview money to hire the Bronx Equestrian Center to bring a petting zoo and a pony to his house for a member of his family’s birthday party in 2006, for which he also hired a catering company and somebody to videotape the event. He also allegedly used the health care funds to pay for a family member’s after-school tutoring. 

The cash was used to help further Mr. Espada’s political ambitions as well, according to the 16-page indictment. It says Mr. Espada used Soundview funds to pay rent on his 2008 state senator campaign headquarters and printing costs for campaign materials. 

Attorney General Andrew Cuomo filed a civil lawsuit against Mr. Espada on April 20, accusing him of stealing $14 million from Soundview over the last five years. On April 21, the Soundview facilities were raided by the FBI. Later that day, Mr. Espada spoke at Soundview to defend himself. He said the charges comprise “a very shallow, very weak civil case that wouldn’t hold up in court.” He also referred to Mr. Cuomo as an “overzealous prosecutor” and said the charges were the product of “witch hunts.”

 He promised that the truth would come to light.

Today, Mr. Cuomo, also the Governor elect, was the one doing the talking. 

“Taxpayer funds meant for the sick and poor were instead used for Broadway shows, fancy meals, and other opulent personal expenses of Senator Esapada. Elected officials are supposed to serve the people not themselves, and this indictment should send a strong message: In New York, no one is above the law,” he said in a press release.  

Soundview Healthcare center receives more than $1 million per year in federal grant money from the United States Department of Health and Human Services, as well as millions more in Medicare and Medicaid reimbursements.

The indictment says Mr. Espada and his son “did knowingly and intentionally embezzle, steal, obtain by fraud, misapply and, without authority, knowingly convert to the use of a person other than the rightful owner, property of Soundview.” 

“The only thing I can say is this is a confirmation of something that the constituents of the 33rd already knew,” said Gustavo Rivera, who defeated Mr. Espada handily in the September Democratic primary.

Mr. Espada and his son are expected to make their first court appearance on Wednesday.

“Like anyone else, he’s entitled to his presumption of innocence, but I do hope justice is served and served quickly,” Assemblyman Jeffrey Dinowitz said.