Tuesday, May 15, 2012

Former state Sen. Pedro Espada Jr., the flamboyant Hispanic Bronx politician who claimed one of New York's most powerful offices only to quickly fall from power, has been convicted on federal charges of theft from a health clinic he founded

The conviction on four of eight counts against Espada came after 11 days of tumultuous jury deliberations marked by name-calling and confusion, several jurors said. The jury was deadlocked on conspiracy charges against Espada and couldn't come to a unanimous decision on identical counts against his son, Pedro Gautier Espada. But the elder Espada's conviction represented a victory for federal authorities who have had mixed results prosecuting New York elected officials accused of corruption. Espada, 58 years old, faces up to 10 years in prison on each count. He and his son were accused of embezzling more than $500,000 from the Soundview Healthcare Network, a nonprofit clinic established by the elder Espada in 1978 and still controlled by him. Gautier Espada, a former state assemblyman and city councilman, also held leadership roles at the company. Much of clinic's funding comes from the state and federal Medicaid program. Federal prosecutors in Brooklyn said that the Espadas used the Soundview clinic as a personal slush fund to support a lavish lifestyle. From 2005 to 2008, the Espadas charged to the clinic a $20,000 trip to Puerto Rico, a $60,000 sport-utility vehicle for the elder Espada's wife, $10,000 in home renovations, $60,000 in restaurant bills and about $100,000 in other personal expenses. Brooklyn U.S. Attorney Loretta Lynch said in a statement that Espada cheated taxpayers and people sorely in need of quality health care by using federal funds intended for Soundview to enrich himself. The outsize political figure served five terms in the Senate over 16 years, while also running unsuccessfully for Bronx borough president and City Council. By the time Espada lost his last election effort in 2010, he was being investigated by the state attorney general and federal authorities, and he was indicted on federal theft and conspiracy charges in December 2010. At one point, the jury's delay caused Espada to speculate that prosecutors had been using "evil spiritual powers" to sway jurors that were favorable to him. On the advice of a "spiritualist," he said that he had instructed his family to wear red in court as a talisman. In his daily press briefings, Espada often called the charges a "political vendetta" orchestrated against him by Gov. Andrew Cuomo. Cuomo was the state Attorney General when Espada was indicted in 2010 and filed a separate civil case against him alleging embezzlement of Soundview. Prosecutors said that they would take some time to consider retrying the Espadas on the unresolved charges. Their decision is due by June 5, 2012. The judge will weigh whether Espada must forfeit $448,000 connected to the charges he was convicted of. Espada is still facing 10 counts relating to tax fraud in federal court in Manhattan. Those charges were part of the original indictment, but Judge Block ruled that he would have to face a separate trial because of jurisdiction.

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