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January 26, 2012
Prosecutors add more charges against Espada
Federal prosecutors are running up the score against former state Sen. Pedro Espada, adding two more counts to his long list of criminal charges. In court papers dated Jan. 17, prosecutors charged Mr. Espada with submitting false statements to the U.S. Department of Health and Human Resources about his salary as head of the Soundview Healthcare Network. The superseding indictment also charges that he lied about the profits earned by Soundview Management Enterprises, a cleaning service he controlled. Mr. Espada was required by the Department of Health and Human Resources to submit the paperwork because the Soundview Healthcare Network relies heavily on Medicaid funding. Mr. Espada told the U.S. Department of Health in 2009 that his salary for the upcoming year at Soundview would be reduced from $246,750 to $185,063, but it never was. The former legislator submitted a statement in court in February 2010, claiming that in 2008, the cleaning service earned $35,000 through a contract with the Soundview Healthcare Network. However, court papers claim the service earned more than that. It is unclear how much more, but enough for federal prosecutors to add the alleged misdeed to criminal charges facing Mr. Espada and his son, Pedro Gautier Espada. Since December, when Mr. Espada was charged with looting more than $550,000 from the non-profit Soundview Healthcare Network he founded and continues to operate, prosecutors have twice added charges against the former Kingsbridge and Kingsbridge Heights representative. In January 2011, prosecutors added tax fraud charges. Jury selection for the long-awaited trial will begin on Monday, March 12. Mr. Espada stands accused of using a Soundview American Express card for personal expenses, as well as paying himself, his son and other family members thousands of dollars in consulting fees, loans, gifts and reimbursements. The indictment alleges Mr. Espada used Soundview money to pay for window treatments, plumbing, heating and air conditioning work for his home in Mamaroneck, N.Y. He is accused of splurging 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.
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