Feds ask judge to yank bail for ex-Sen. Pedro Espada Jr. and toss him in jail
Prosecutors say he's improperly siphoned off $350,000 from the sale of Soundview Healthcare Network
By John Marzulli / NEW YORK DAILY NEWS
Wednesday, September 19, 2012, 12:44 PM
Mark Bonifacio/New York Daily News
Former Democratic Senate Majority Leader Pedro Espada Jr. He was convicted of stealing more than $400,000 from the Soundview Healthcare Network. Prosecutors want his bail revoked.
Federal prosecutors have asked a judge to revoke the bail of convicted
ex-state Sen. Pedro Espada Jr. and toss him in jail for violating the
terms of his release.
Espada was convicted last May of stealing more than $400,000 from the Soundview Healthcare Network he founded, prompting Judge Frederic Block to bar him from participating in the affairs of the Bronx clinics.
In a letter to the judge, prosecutors revealed that Espada and members of his family have been draining Soundview's remaining assets. It was sold to the Institute for Family Health for $600,000 in June.
One day after Soundview deposited the proceeds from the sale, the defendant's son Alejandro Espada — who was serving as executive vice president of the clinics — distributed more than $350,000 to himself, his father, his brother and a cleaning company the elder Espada controlled, according to court papers.
Pedro Espada's lawyer, Susan Necheles, also received $50,000, according to the papers.
"These transactions appear to be designed to accomplish several illicit goals," Assistant U.S. Attorneys Roger Burlingame and Todd Kaminsky stated.
"First the transactions show the defendant is seeking to defeat any future forfeiture and restitution orders by preventing the government from attaching assets in a known bank account."
"Logic dictates (Espada) owes money to Soundview, not the other way around."
Espada and his son Pedro Gautier Espa da are facing trial in Manhattan Federal Court on tax charges.
About a week after the Soundview cash was dished out, Espada told officials with the federal pretrial service that he could not afford a lawyer. He did not disclose the $104,000 that had been deposited in the cleaning company's account and converted to cash, prosecutors said.
Espada's lawyer did not immediately return a call for comment.
Espada was convicted last May of stealing more than $400,000 from the Soundview Healthcare Network he founded, prompting Judge Frederic Block to bar him from participating in the affairs of the Bronx clinics.
In a letter to the judge, prosecutors revealed that Espada and members of his family have been draining Soundview's remaining assets. It was sold to the Institute for Family Health for $600,000 in June.
One day after Soundview deposited the proceeds from the sale, the defendant's son Alejandro Espada — who was serving as executive vice president of the clinics — distributed more than $350,000 to himself, his father, his brother and a cleaning company the elder Espada controlled, according to court papers.
Pedro Espada's lawyer, Susan Necheles, also received $50,000, according to the papers.
"These transactions appear to be designed to accomplish several illicit goals," Assistant U.S. Attorneys Roger Burlingame and Todd Kaminsky stated.
"First the transactions show the defendant is seeking to defeat any future forfeiture and restitution orders by preventing the government from attaching assets in a known bank account."
"Logic dictates (Espada) owes money to Soundview, not the other way around."
Espada and his son Pedro Gautier Espa da are facing trial in Manhattan Federal Court on tax charges.
About a week after the Soundview cash was dished out, Espada told officials with the federal pretrial service that he could not afford a lawyer. He did not disclose the $104,000 that had been deposited in the cleaning company's account and converted to cash, prosecutors said.
Espada's lawyer did not immediately return a call for comment.
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