Bloomberg News

N.Y. Lawmaker Espada’s Bail Should Be Revoked, U.S. Says

By Christie Smythe
September 19, 2012

Former New York legislator Pedro Espada Jr., convicted of embezzlement in Brooklyn, New York, federal court, may still be siphoning money from a Bronx clinic he ran and should have his bail revoked, a prosecutor said.

Espada and his family members “drained” most of the remaining assets of the now-defunct Soundview Healthcare Network in June, Assistant U.S. Attorney Carolyn Pokorny told U.S. District Judge Frederic Block in a letter dated yesterday and unsealed today. A jury convicted Espada on May 14 of four counts of stealing from the Soundview clinics.

On June 29, one of Espada’s sons, Alejandro Espada, distributed more than $350,000 of the clinic’s funds to the family and affiliate companies, according to the letter. About $40,000 of the money went Espada and about $50,000 went to the law firm representing him in the Brooklyn case, Hafetz, Necheles & Rocco, the prosecutor said.

“It is inconceivable that, absent the defendant’s continued involvement in Soundview affairs, the victim of his theft would turn over a significant portion of its final resources to pay the legal fees of the perpetrator of the crime against it,” Pokorny wrote.

Espada was granted release on a $750,000 bond on December 16, 2010, according to court filings. He and his son Pedro Gautier Espada face a new trial in Brooklyn on charges that the jury failed to reach a verdict on in May. The two are also facing a trial in Manhattan on tax charges.

A lawyer for Espada, Susan Necheles, didn’t immediately respond to a phone message and e-mail seeking comment.

The Brooklyn case is U.S. v. Espada, 10-cr-985, U.S. District Court, Eastern District of New York (Brooklyn). The Manhattan case is U.S. v. Espada, 1:12-cr-00235, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Christie Smythe in New York at csmythe1@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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