By Mark Scott
Albany, NY – Attorney General Andrew Cuomo filed suit Tuesday against State Senate majority leader Pedro Espada, alleging that Espada looted his not-for-profit development firm in the Bronx.
Cuomo claims Espada and his family siphoned more than $14 million over five years. The civil suit seeks restitution and Espada's removal as president of the Comprehensive Community Development Corporation known as "Soundview."
Cuomo says the firm received federal grants to provide healthcare services. Rather than using the money for healthcare, Cuomo says Espada diverted the money for personal use.
"Taxpayer money was given to this not-for-profit to provide healthcare services to underprivileged patients, but our investigation has found the funds flowed into the pockets of Senator Espada and his supporters," Cuomo said. "Siphoning money from a charity would be egregious under any circumstances, but the fact that this was orchestrated by the State Senate Majority Leader makes it especially reprehensible."
Espada has characterized Cuomo's investigation a "witch hunt" to boost the attorney general's political career.
Cuomo said nothing in the investigation shows official misconduct by Espada and no criminal charges were filed.