New York Paralegal Blog

NEW YORK, NY (April 28, 2010) – Attorney General Andrew M. Cuomo today filed a lawsuit against Senate Majority Leader Pedro Espada, Jr. and his son, Pedro G. Espada, for violating labor laws by creating a sham job training program that cheated workers and shortchanged State coffers. The lawsuit alleges that Senator Espada created a personally owned, for-profit management company, Espada Management, as a vehicle to siphon money from Comprehensive Community Development Corporation (“Soundview”), the Bronx-based not-for-profit where Espada is founder and CEO. The money flowed from Soundview to Espada Management, run by Pedro G. Espada, by means of a contractual arrangement that called for Espada Management to supply janitors for the Soundview medical clinics.

NEW YORK, NY (April 20, 2010) - Attorney General Andrew M. Cuomo today announced his office has filed suit against Senate Majority Leader Pedro Espada Jr. for looting the Bronx based not-for-profit where Espada serves as President and CEO. Nineteen current and former officers and directors of the Comprehensive Community Development Corporation (“Soundview”) are also named in the lawsuit. The lawsuit alleges Espada diverted Soundview’s charitable assets and used the money for himself, his family, his friends, and his political operation. In the past five years, Espada has siphoned more than $14 million out of Soundview, including an unconditionally guaranteed severance package worth an estimated $9 million which was put into a contract signed in 2005. The Chief Financial Officer and the Soundview Board, which is packed with Espada’s family, friends, and Senate employees, approved the transactions.