Tuesday, May 22, 2012

Judge tells Soundview to sue Espada for looted cash
 
Last Updated: 8:08 AM, May 22, 2012
Posted: 2:03 AM, May 22, 2012

A Bronx judge pulled no punches yesterday as lawyers for the Soundview Healthcare Network looted by ex-state Sen. Pedro Espada Jr. came to court looking to squeeze more money out of the state.
He told them to sue Espada instead.
Bronx Supreme Court Justice Mark Friedlander suggested that rather than suing the state for withholding some $312,000 in Medicare funds, the dying health-care charity should sue Espada to recoup the nearly $500,000 he’s been convicted of stealing from it — and to prove he’s not still “pulling the strings.”
“One of the ways to show that the strings are cut is to pursue a civil action against him,” the no-nonsense judge told Soundview lawyers. “I still don’t know who’s pulling the strings at Soundview,” Friedlander said, arguing that Espada should “pay restitution.”
Friedlander’s suggestion sent Soundview lawyer Nathan Dembin into a tailspin of non sequiturs.
“The sins of the father should not be imposed on the son,” said Dembin, referring to his oft-repeated claim that Soundview is being run by Espada’s son, Alejandro, and not Espada — who faces up to 40 years in prison after his conviction in Brooklyn federal court last week.
“You throw out the baby, Soundview, with the dirty bath water,” said a shaken Dembin as he suggested that suing the former state Senate majority leader somehow would suggest “guilt by association” for Soundview.
Finally, Dembin asked, “How are we going to pay an attorney to go after Espada?” — an odd question, as Dembin is himself an attorney representing Soundview.
“Is he going to control it from prison?” Dembin asked.
But Friedlander told Dembin his claims that Espada now has no control over Soundview “does not carry a full persuasive force” if the charity doesn’t sue Espada — who had billed clearly personal expenses on the nonprofit’s credit card for years.
Friedlander’s needling of Dembin was only the latest bit of bad news for Soundview.
Founded by Espada in 1978, Soundview last week was ordered by the state Health Department to surrender its operating certificate and submit a closure plan after the charity failed to come up with an adequate plan to solve shortfalls in staffing and medical supplies.
The nonprofit as of yesterday had failed to comply with that demand, which would officially close it.
Soundview, citing the need for the cut-off state cash, has all but ceased operations, saying it is unable to pay its malpractice insurance and staffers.
But Assistant Attorney General Seth Farber argued that not only does the state not owe Soundview any of that money, but a recently completed audit found that Soundview actually owes the state nearly $212,000 for overpayment of Medicaid reimbursements.
douglas.montero@nypost.com

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