In a civil lawsuit filed Tuesday, New York Attorney General Andrew Cuomo said his office is suing State Senator Pedro Espada, Jr. for allegedly stealing $14 million from the Comprehensive Community Development Corporation, a network of non-profit health centers Espada founded and heads up. 

“Taxpayer money was given to this not-for-profit to provide healthcare services to underprivileged patients, but our investigation has found the funds flowed into the pockets of

Senator Espada and his supporters,” Cuomo said in a statement.
In a statement, Espada did not address the charges specifically, except to say they were “no where [sic] near commensurate to the resources devoted to it.” He added that civil charges are brought when a “tenant has a dispute with their landlord, or when spouses are divorcing.”

The charges were “political payback for what the establishment like to call the senate coup,” Espada said, referencing the time last summer when he switched party allegiances and stalled senate business for more than a month. He eventually came back to the Democrats in exchange for the role as majority leader.

The lawsuit says Espada lavished the money on himself and his political operations, and on his family, friends and aides. For example, the non-profit (also known as Soundview) allegedly covered the cost of vacations Espada took with his family. And it paid for $100,000 worth of campaign literature and $80,000 in restaurant bills, including $20,000 in take-out sushi delivered to Espada’s Westchester home.

While the lawsuit is a civil case intended to oust Espada from Soundview, and make him pay restitution and damages, criminal charges could follow.

Nineteen current or former Soundview officers and directors are also named in the suit, news of which was quickly seized upon by Eric Koch, a spokesman for Desiree Pilgrim-Hunter, a likely opponent of Espada’s in this fall’s Democratic primary.

“The Attorney General’s complaint details a shameful story of an elected official taking resources from the community he represents — instead of bringing resources to the community,” Koch said in a statement.

It has been a miserable few days for the controversial senator. Last Friday, CBS reported that two consulting firms with links to Espada, his son, and a staffer, are the subject of a federal probe into alleged tax fraud and money laundering. Espada denied having ties to the two firms and called the allegations 100 percent false.

On Monday he held a rally in Albany to promote a housing bill he’s sponsoring. Travelling on buses chartered by his office, more than 150 Bronx residents, community leaders, and clergy made the trip upstate to show their support. If passed, the bill would freeze the rent of New York City families for five years, provided they earn $45,000 or less a year and pay more than a third of their income as rent. 

“We need a place to live where we don’t need to work three jobs to keep an apartment,” said Jeffrey Sampson, a Wakefield resident who attended the rally and who is a fan of the bill.

But some affordable housing advocates have slammed the legislation. A clause would allow landlords who have illegally deregulated apartments while receiving special tax breaks to keep the units at market rate, providing they pay back the breaks — saving them millions of dollars.

It’s a pro-landlord bill disguised as a pro-tenant one, these advocates say.