Espada, son indicted on embezzlement charges

Pedro Espada Jr., a former leader of the New York State Senate, was indicted Tuesday along with his son, Pedro Gautier Espada, on charges of embezzling more than $500,000 from a federally funded health care network for the poor in the Bronx to support lavish lifestyles.

The indictment filed by federal prosecutors in Brooklyn involved two Long Island businesses as part of the alleged schemes. The Senate's Democratic leadership responded immediately by stripping the senator of his majority leader title and chairmanship of the housing committee.

According to the indictment, the Espadas got a Melville-based company to participate in a bid-rigging scheme so that a second Espada-controlled company got the contract to provide janitorial services to the Soundview Healthcare Center, which the senator founded 30 years ago.

The Melville company, whose name was not released, was one of several janitorial companies that was given inflated bid information so that its bid was higher than that submitted by the Espada janitorial company, Community Expansion Development Corporation, which won the contract, the indictment said.

Money was then illegally siphoned from the development corporation to pay for pony rides and a petting zoo visit for a family member's birthday party; rent for Pedro Espada's campaign headquarters; printing of campaign material; and heating and air conditioning work on the senator's Mamaroneck home, according to U.S. Attorney for the Eastern District Loretta Lynch.

Attorney General Andrew Cuomo's office was also involved in a joint probe of the Espadas, according to officials.

In addition, a $49,000 check from the development firm allegedly was used by Espada (D-Bronx) as a down payment in an unsuccessful attempt to buy a $125,000 Bentley from Bentley of Long Island, the indictment says.

"Ultimately, the check was not negotiated because Espada's financing application was rejected," the indictment says.

Other money scammed from the health care network itself was used to provide more than $100,000 in personal meals for the senator and other family members, window treatments for his home, and tickets to Broadway shows and sporting events, the indictment says.

Espada, 57, who founded the health care center in 1978, was defeated in a primary this year. His son, 37, was an executive in the health care network.

The Espadas are scheduled to be arraigned Wednesday in federal court in Brooklyn on one count of conspiracy and five counts of embezzling from a nonprofit health care network receiving federal funds. They face up to 10 years in prison on each of the embezzlement counts and 5 years on the conspiracy count.

With James T. Madore