Feds Seek Bail Revocation For Espada — Updated 3X


The sorry saga of disgraced former state senator Pedro Espada continues with the latest episode posted on the State of Politics blog today. Unfortunately, the good work of Dr. Neil Calman and the Institute for Urban Family Health was caught in the back splash of Mr. Espada’s  continued disregard for the law and lack of shame.

Mr. Espada is accused orchestrating the distribution of the proceeds ($600,000) from the sale of Soundview Health Center’s lease and medical equipment to Dr. Calman’s IUFH. According to the prosecutor’s filing, Espada received a $40,000 payout, his lawyers got $50,000, and family members split $260,000. The remainder went to Soundview employees. None of the health center’s creditors got as much as one red cent.

The NY Post offered it’s judgement:

If that isn’t enough to earn Pedro Espada a stint in the Crossbar Hotel, what is?

.State of Politics reported

Federal prosecutors have asked a judge to revoke the bail of former Senate Majority Leader Pedro Espada Jr., who was convicted in May after a prolonged and colorful trial of stealing close to half a million dollars from Soundview, the federally funded Bronx health clinic he founded and ran for years with the assistance of allies and members of his family.

Upon his conviction, Espada was barred from participating in Soundview’s affairs.

In the letter that appears below, prosecutors informed the judge that the Espada family has been slowly bleeding Soundview’s assets after selling it to the Institute for Family Health for $600,000 in June.

One day after Soundview deposited the proceeds from the sale, Espada’s son, Alejandro, who was heading the clinics in his father’s stead, doled out more than $350,000 to himself, his father, his brother, Pedro G., and a janitorial company the family controlled.

Pedro Espada’s attorney, Susan Necheles, also received $50,000. And Bienvenido Toribio, the man who acted as his bodyguard during the trial, got $5,200.

“Sadly,it is unsurprising that of all of the individuals and entities to whom Soundview owes money, the defendant and his immediate family received the majority of Soundview’s last funds and apparently did so without having to justify their claims to it,” Assistant U.S. Attorneys Carolyn Pokorny, Roger Burlingame and Todd Kaminsky wrote.

“In light of the fact that the defendant himself, his janitorial company, his defense attorney and his bodyguard together received one-third of Soundview’s final $600,000, it simply is not reasonable to think that the defendant did not communicate with his son, Alejandro, about how the money was to be allocated.”

Espada was reportedly granted release on a $750,000 bond on Dec. 16, 2010. He and Pedro G. face a new trial in Brooklyn on charges that the jury failed to reach a verdict on in May. They’re also facing a trial in Manhattan on tax charges.

A revocation hearing has been scheduled for Friday at 9:30 a.m.

According to the federal documents

  • Soundview Management Enterprises, Espada’s janitorial company that cleaned the clinic, allegedly received $104,000 on June 29
  • Espada allegedly took out $50,000 cash from Soundview Management Enterprises and made out a $45,000 cashier’s check to his wife. She then deposited that draft into her own bank account and withdrew the same amount in cash
  • Pedro Espada, sons Pedro Gautier and Alejandro got $40,000, $42,045 and $38,000, respectively, from the big sale.
  • Soundview Health Group, a shell company under family control, got $81,500. Judge Block issued an order yesterday, freezing all funds that came from Soundview Health Group.
  • Former defense lawyer, Susan Necheles, allegedly got $50,000 of the proceeds

Espada still owes

  • $500,000 in a court-ordered restitution to his clinic
  • $2 million to judgment creditors, and
  • $1 million to the IRS in unpaid payroll taxes.

Pedro Espada remains free on bail pending appeal of his May 14 conviction.

Feds Seek Bail Revocation For Espada.

Pedro Espada Jr. Violated Bail Terms, Prosecutors Say — NYTimes.com

Pedro Espada still stealing, say feds — Editorial – NYPost.com

Espadas still on the ‘take’ — NYPOST.com

About SquarePegDem

A former state legislator turned NY Post editorial board member, thought-leader, public affairs consultant and commentator, columnist and blogger. Michael has appeared on Al Jazeera America Tonight, NY1/Inside City Hall, FoxNews.com LIVE, YNN/Capital Tonight, The Brian Lehrer Show, The Fred Dicker Show, The Capitol Press Room, and The Daily Show. His op-eds have appeared in the NY Post, City and State, The Legislative Gazette, Bronx Times, The Troy Record, Buffalo News, and the Rochester Democrat and Chronicle. To schedule speaking engagements, email MBenjamin9@optimum.net.
This entry was posted in Crime, Political corruption, Poverty Pimps, Public Corruption and tagged , , , , . Bookmark the permalink.

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