Former state Sen. Pedro Espada Jr. and son set to cop plea in nonprofit scam

• By MITCHEL MADDUX and DAN MANGAN
• Last Updated: 5:59 AM, October 12, 2012
• Posted: 3:03 AM, October 12, 2012

Disgraced ex-state Sen. Pedro Espada Jr. and his son are scheduled to plead guilty today in Brooklyn federal court after reaching a deal with prosecutors over charges they looted more than $500,000 from the Bronx health-care nonprofit they founded, sources said.
The plea deal would resolve Espada’s and Pedro Gautier Espada’s pending retrial in Brooklyn federal court for which they stand accused of swindling the Soundview Healthcare Network to fund a lavish lifestyle, as well as a Manhattan federal court case in which they are accused of failing to pay taxes on that money, sources said.

David McGlynn

Pedro Espada

Terms of the plea deal were not disclosed yesterday but could include a reduction in the number of charges and an agreement on what prison sentence federal guidelines would call for.
“I expect a resolution of both the Brooklyn and Manhattan cases [Friday],” said Espada’s lawyer, Daniel Hochheiser.
A Brooklyn federal court jury in May convicted the former state Senate majority leader of four criminal counts, deadlocking on four other counts — and deadlocked on the same eight counts facing his son.
Evidence at trial showed how the Espada clan enjoyed vacations, sushi meals, cars, birthday parties, flowers and other luxuries with funds siphoned from the taxpayer-supported nonprofit.
A retrial of Pedro G. Espada, 38, and his dad for the counts on which the jury deadlocked was on hold until after the end of the Manhattan tax trial, set to start on Nov. 5.
The elder Espada, 58, was already facing up to 40 years in prison, as well as huge legal bills for the retrials.
The dramatic move to end both cases was indicated in a note yesterday by Brooklyn federal Judge Frederic Block.
In a letter to Manhattan federal Judge William Pauley three days ago, Pedro G. Espada’s lawyer wrote that prosecutors “will only negotiate a ‘package deal’ for both defendants.”
Hochheiser last night said only, “The senator is open to a fair resolution of the pending matters in Manhattan and Brooklyn.”
His son’s lawyer, Sabrina Shroff, declined to comment, as did the Brooklyn US Attorney’s Office.
Hours before the expected deal came to light, it was revealed that Espada’s other son, Alejandro, demanded that federal authorities release about $81,000 in Soundview funds that had been seized after officials learned he secretly distributed about $600,000 of the nonprofit’s remaining funds to his family, cronies and employees.
Alejandro Espada, who headed the now-closed clinic in his dad’s absence, claimed he was entitled to the money for work he did.
dan.mangan@nypost.com