Saturday, August 1, 2009

SHAME ON THE ARROYOS FAMILY—MOTHER AND DAUGHTER

New charges in Richard Izquierdo indictment over misused funds

by Greg B. Smith
DAILY NEWS STAFF WRITER

Friday, July 31st 2009, 4:00 AM
Smith for News


Richard Izquierdo leaves Federal Court following his arraignment in connection with a scheme to embezzle funds from SBCC Management Corp.

Two Bronx pols illegally hired summer interns with cash from a taxpayer-funded nonprofit run by their relative, prosecutors alleged.

The new charges emerged Thursday with the indictment of Richard Izquierdo - grandson of Bronx Assemblywoman Carmen Arroyo and nephew of Councilwoman Maria Del Carmen Arroyo. The Arroyos, both Democrats, did not return calls.

Izquierdo and Margarita Villegas, an employee of the nonprofit Izquierdo runs, were originally charged in June with misusing taxpayer money to benefit his politician relatives.

The new charges allege Izquierdo misused funds from the SBCC Management Corp., a nonprofit that managed low-income buildings. SBCC is largely taxpayer-funded.

Over the past three summers, some money from SBCC paid for legislative interns for the Arroyos and a political club controlled by the assemblywoman, the indictment alleges.

Izquierdo and Villegas were previously charged with using the nonprofit's money to buy the Arroyos plane tickets to Puerto Rico, repair the floor of the assemblywoman's district office and make campaign contributions.

Both have also been charged with using the nonprofit's American Express Platinum card to pay for $180,000 in expenses from designer shopping sprees to Puerto Rico spas.

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