Attorney General Andrew Cuomo charged embattled Senate Majority Leader Pedro Espada today with looting the Bronx-based nonprofit where he serves as President and CEO.
The civil suit filed today in State Supreme Court alleges Espada and his family siphoned more than $14 million over five years out of the health clinic. The suit also accuses the Democrat of packing the board with relatives and Senate employees to rubber stamp expenditures.
The lawsuit names 19 current and former officers and directors of Soundview in addition to Espada and marks the first official charges filed against the Bronx politician amid a variety of ongoing probes.
The lawsuit alleges Espada diverted Soundview’s charitable assets and used the money for himself, his family, his friends, and his political operation. In the past five years, Espada has siphoned more than $14 million out of Soundview, including an unconditionally guaranteed severance package worth an estimated $9 million, which was put into a contract signed in 2005.
The Chief Financial Officer and the SoundviewBoard, which is packed with Espada’s family, friends, and Senate employees, approved the transactions, according to the lawsuit.
The lawsuit, part of Cuomo’s ongoing investigation, seeks to permanently remove Espada and current CFO Kenneth Brennan as officers of Soundview and to pull all of the clinic’s directors from the board.
(Source: NBC New York)
4 Responses
Maybe they could indict the whole of the legislature under RICO (Racketeer Influenced and Corrupt Organizations Act).
Other than this incident, he is a very nice guy.
With $14 million he can certainly afford to be a nice guy.
I understand that Bernie Madoff is also a nice guy – unless you invested money with him.