Convicted Bronx Politician Profited From Sale of Charity, Prosecutors Say

Federal prosecutors are seeking to revoke bail for former New York State Sen. Pedro Espada Jr., claiming he profited from the sale of the bankrupt Bronx health charity he was convicted of swindling, writes The New York Times.

Papers filed in federal court Wednesday assert that Mr. Espada, who is awaiting sentencing on fraud charges, pocketed $40,000 from the $600,000 sale of Soundview Healthcare Network, the nonprofit clinic system he founded. Prosecutors say the alleged transaction violates Mr. Espada’s bail terms, which bar any involvement with Soundview.

The longtime Bronx political leader was convicted in May of embezzling hundreds of thousands of dollars from the clinic network and still faces trial on additional charges stemming from the case.

According to Wednesday’s filing, Alejandro Espada, a son of the former senator who succeeded him as Soundview’s chief executive, also disbursed sale proceeds to other relatives, family-controlled businesses, his father’s attorneys, and Soundview staff. Prosecutors say the clinic’s creditors—including the Internal Revenue Service, which is owed $1-million—did not get any of the money.