Suit says Espada stole $14M from charity clinics

ALBANY - The State Senate's No. 3 leader looted more than $14 million from charity health clinics in the Bronx to fund his lavish lifestyle and political campaigns, according to a lawsuit filed Tuesday.

Majority Leader Pedro Espada Jr. (D-Bronx) used the Soundview HealthCare Network, which cares for the poor, "as a personal piggy bank" for five years, state Attorney General Andrew Cuomo said in filing the civil charges. Most of the clinics' money comes from Medicaid and Medicare.

Cuomo charged Espada with securing from Soundview's complacent board of directors a $9-million guaranteed severance package, which would bankrupt the clinics when it was paid. Soundview also paid for trips Espada and his family took and more than $20,000 in sushi meals delivered to the senator's house in Westchester County, the suit said.

Espada shot back, "I did nothing wrong. All of this is false."

Soundview funded the Bronx apartment Espada uses to claim residency in his senatorial district, as well as costs tied to his 2008 campaign, according to the lawsuit. Twice previously Soundview workers have been convicted of using its resources to aid Espada's political career - but he emerged unscathed from the cases and rewarded the workers.

Cuomo said, "Not-for-profit means just that . . . not for personal gain, not for looting."

Espada said the lawsuit was aimed at bolstering Cuomo's expected bid for governor and as "payback" for last summer's leadership coup in the Senate.

Espada helped orchestrate the June 8 coup and ensuing 4½ weeks gridlock. He was Senate president while coup partner, Sen. Dean Skelos (R-Rockville Centre), was majority leader. The GOP-dominated insurrection ended when Espada rejoined the Democrats and was named majority leader.

Skelos disavowed Espada Tuesday, saying, "If these charges are true, the case must be prosecuted to the fullest extent."

Senate Democratic chief John Sampson said, "These allegations merit a full and fair review by the appropriate authorities."

Because Espada faces civil, not criminal, charges, he will not lose his committee chairmanship and other perks. In the closely divided chamber, Democrats would lose control if Espada didn't vote with them or was expelled.

Espada is the subject of other probes of his residency, campaign finances and use of pork barrel grants.

Cuomo also sued 19 current and former executives and board directors of Soundview, which Espada founded. Among these are four Senate employees.

Cuomo added, "I wouldn't be surprised if in this case there were criminal charges down the road."Breakdown of spending

$9 million Guaranteed severance package for Espada.

More than $450,000 Personal expenses charged by Espada on Soundview credit card from 2006 through mid-2009.

$80,000 Restaurant bills for Espada or his supporters, including more than $20,000 in sushi delivered to his Westchester house.

More than $50,000 For a Bronx co-op so Espada could claim residency in his Senate district.

SOURCE: State Attorney General's office