Pedro Espada Jr.

Pedro Espada Jr.
Member of the New York Senate from the 33rd district
In office 2009 – December 15, 2010
Preceded by	Efrain Gonzalez
Succeeded by	Gustavo Rivera
Majority Leader of the New York State Senate
In office July 9, 2009 – December 14, 2010
Preceded by	Malcolm Smith/Dean Skelos[1]
Succeeded by	Dean Skelos
Member of the New York Senate from the 32nd district
In office 2001–2002
Preceded by	David Rosado
Succeeded by	Rubén Díaz
Member of the New York Senate from the 32nd district
In office 1993–1996
Preceded by	Efrain Gonzalez
Succeeded by	David Rosado
Lieutenant Governor of New York Acting
In office June 8, 2009 – July 8, 2009[2]
Governor	David Paterson
Preceded by	Malcolm Smith
Succeeded by	Richard Ravitch as Lieutenant Governor
Personal details
Born	October 20, 1953 Coamo, Puerto Rico
Political party	Democratic
Spouse(s)	Connie Espada
Alma mater	Fordham University

Pedro Espada Jr. (born October 20, 1953)^[3] is a federal prison inmate and former Democratic member of the New York Senate for the 33rd Senate District. A former New York Senate majority leader, Espada was conficted on corruption charges in May, 2012 and sentenced prison for five years.

Espada was at the center of the June 2009 change in power in the Senate, one of two Democratic senators who voted to appoint Republican Dean Skelos as Majority Leader; Espada himself was chosen to be Temporary President. After his return to the Democratic caucus on July 9, 2009, Espada was chosen Majority Leader of the New York State Senate. Dogged by scandals, Espada was defeated by Gustavo Rivera on September 14, 2010, in a primary election in his bid to retain his State Senate seat, 32.66% to Rivera's 62.21%. He was indicted on six federal counts of embezzlement and theft on December 14, 2010, and stripped of his leadership position in the State Senate the same day.

Early life and career

Espada was born in Coamo, Puerto Rico in 1953 and moved with his family to New York City at the age of five.^[4] His family settled in the Mott Haven section of the Bronx, where he attended the New York City Public Schools. He attended Fordham University, and graduated in 1975 with a Bachelor of Arts degree. Espada subsequently took graduate level coursework at the Hunter College School of Social Work, received graduate training certificates from open enrollment programs at the Wharton School of the University of Pennsylvania and from the Columbia Mailman School of Public Health, and received certification in 1990 from the Real Estate Institute at NYU's School of Continuing and Professional Studies.^[5]

In the late 1970s, Espada was a community organizer and educator in Harlem and the Lower East Side in Manhattan, and in the South Bronx. He established and served as president of the Comprehensive Community Development Corporation and was the executive director of the Soundview Health Center.^[6]

Espada had become head of the tenant's association at Stevenson Commons and led the effort in 1978 to open what became the Soundview Health Center after the city's economic problems led to a decision to not establish a promised clinic in the complex. The empty building that was to have been the clinic was leased by the group and $50,000 in federal grants was obtained, with the first patient taken in October 1981. By 1992, Soundview was offering medical and preventive care to 45,000 patients annually, and was also running a computer literacy program, serving lunch to hundreds of seniors daily and distributing surplus food. The New York Times noted that the health center featured Espada's name and image throughout the facility, describing it as having "elements of a cult of personality", though Espada explained it as "The community has to know you" so that "In the end, they will trust you".^[7]

Political career

In 1988, Espada ran in the Democratic primary for the nomination in New York's 18th congressional district, which at the time covered the largely Hispanic and African American heart of the South Bronx, against incumbent Robert García.^[6] Espada, mounting a challenge against what would normally be a safe seat for renomination, made an issue of García's involvement in the Wedtech scandal, which resulted in the loss of 1,500 jobs in the economically challenged district.^[8] In the primary, Espada was endorsed by The New York Times, which called him "articulate, focused and knowledgeable about health and poverty" based on his experience with the Soundview Health Center and encouraged voters to "send a powerful message by supporting candidates who have been neither burned nor singed".^[9] Espada was also endorsed by El Diario and The Amsterdam News, but received few endorsements from political figures.^[10] García won renomination with 60 percent of the vote to Espada's 27 percent.^[11]

Espada was elected to represent the 32nd District, in the Southeast Bronx, which includes the neighborhoods of Soundview, Hunts Point, Mott Haven and Parkchester, serving in office from 1993 to 1996 and again from 2001 to 2002, with David Rosado holding office in the intervening years. In the 1996 primary, the Bronx Democratic Party took the highly unusual step of running a candidate against the incumbent Democratic Senator, and successfully challenged Espada's petitions in court.^[12] Espada ran on the Liberal Party line, and lost to David Rosado, 78% to 21%^[13]

In their 2000 re-match, Espada wrested the Democratic nomination from Rosado, who was forced to defend his seat in the Senate on the Liberal and Working Families Party lines. Espada, having the Democratic line, won the election handily.^[14]

In 2001, Espada ran for Bronx Borough President, but was defeated by Adolfo Carrion Jr.

In 2002, Espada ran for the Democratic nomination for a seat in the New York City Council, representing the 18th District. He lost to incumbent Ruben Diaz, Sr. by 97 votes. Espada sought a new primary in court, but was denied.^[15]

Espada was re-elected to the Senate in 2008 for a seat in the 33rd District, succeeding Efrain Gonzalez. The 33rd District is in the Northwest Bronx, including the neighborhoods of Bedford Park, Fordham, Norwood, and Kingsbridge Heights.

When his son Pedro Gautier Espada was elected to the New York State Assembly in 1996, the two became the first father and son in the New York State Legislature to represent different districts in the Bronx.^[5]

Espada was the first Latino to serve as Majority Leader. This position was given to him to help resolve the June 2009 New York Senate coup orchestrated by Espada, then-Senator Hiram Monserrate, and the Republican Senate Conference.^[16] Monserrate was later removed from office following a conviction for domestic abuse.^[17]

Espada voted in favor of same-sex marriage legislation on December 2, 2009, but the bill was defeated.^[18]

June 2009 "parliamentary coup"

Espada speaking with Dean Skelos during the Senate leadership crisis.

Though there were 32 Democrats and 30 Republicans in the Senate, on June 8, 2009, Espada and Hiram Monserrate (D-Queens) were part of what was described by the Associated Press as a "parliamentary coup" and voted with the 30 Republican members to install Senator Dean Skelos (R-Nassau) as the new majority leader of the Senate, replacing Senator Malcolm Smith (D-Queens).^[19][20] In a press release posted to his Senate web page, Espada emphasized that "I remain a staunch, reform Democrat. I have not switched parties," and that his actions were intended to help end the "gridlock, paralysis, secretiveness, threats and partisan politics" that the Senate had experienced in the previous months and that he was not part of "a power grab or a coup" but was working to build a coalition to serve the needs of all New Yorkers with open and transparent government.^[21] However, when pressed by Wayne Barrett on June 11, 2009 as to whether he felt allegiance to the Democratic party, the Senator claimed he owed nothing to a political party that spent "hundreds of thousands" to defeat his past elections.^[22]

The switch was preceded by several weeks of private talks brokered by upstate billionaire Tom Golisano.^[23]

In the early evening of July 9, 2009, Espada switched his allegiance back with the Democratic Party, and was then selected the Senate Majority Leader of the New York State Senate.^[24]

Controversies

At the beginning of his rise to power in the South Bronx, The New York Observer, in July, 1996, published a story that Espada did not live in the district when he ran for office and since he had been elected to the state legislature, in violation of New York State residency laws.^[25] He had moved to a house overlooking the Long Island Sound, "located on a cul-de-sac in a lushly green and exclusive neighborhood, only 16 miles from the South Bronx," in Mamaroneck, in Westchester County, the year before he ran for the State Senate, in 1991, according to Westchester County real estate records, reported the Manhattan-based weekly. When a reporter visited the house listed as the address for a car leased by the Medicaid-funded Comprehensive Community Development Corporation, for the use of his wife, Connie, "Mr. Espada could be found lounging by the pool, dressed in a white tank-top and baby-blue shorts, with a matching baseball cap."

Espada lost his bid for re-election, but was later elected to represent the South Bronx in the State Senate again, even as he continued to maintain residence in Mamaroneck. He claimed a co-op apartment in Bedford Park as his district residence. Several residents of the Bronx co-op said they never saw him there.^[26] The Bronx County District Attorney opened an investigation,^[27] and the resulting media attention forced Espada to move into his vacant Bronx apartment.

By the time Espada was elected to the Senate in 2008, he owed in excess of $60,000 in fines to the New York City Campaign Finance Board related to races as far back as his 2001 run for Bronx Borough President. The campaign for his 2008 State Senate run had not registered with the New York State Board of Elections and fines were assessed against Espada's 2000 Senate campaign for required reports that had not been filed. Espada acknowledged that mistakes had been made but insisted that some of the accusations were unfair.^[28]

Steven Pigeon, a former Erie County, NY Democratic chairman is currently the counsel to Espada.^[29] Mr. Pigeon's name had been mentioned in connection with a 2007 election scandal of the county executive campaign of former West Seneca Supervisor Paul T. Clark.^[30] Erie County’s Republican elections commissioner alleged that former Democratic Chairman G. Steven Pigeon laundered thousands of dollars from Buffalo Sabres' owner Tom Golisano’s political committee and others in an attempt to conceal the origin and circumvent contribution limits, in violation of state election law.^[31]

Espada was also investigated by federal investigators and the IRS for his ties with a consulting firm called "A-1 Multi-Service LLC" over suspicions that the firm, which appeared to not have a valid office, may be a shell company for tax fraud and money laundering.^[32][33][34]

On April 29, 2010, Espada was hit with another civil lawsuit for allegedly pocketing $1.35 million in a sham job training program. The suit focused on "Espada Management Company", a company run by Espada's son and the company that was hired to provide janitorial services for Espada's Soundview Health Clinics. According to the suit, Espada paid the trainees below minimum wage — as little as $1.70/hr — to mop floors and scrub toilets.^[35][36]

Soundview controversy and investigation

Espada was also repeatedly criticized for unethical use of the non-profit Soundview Health Clinic for political reasons. In 2000, he was acquitted on charges of using $200,000 from a Soundview Health Management Organization to pay off campaign debts from 1996. He was found not guilty by arguing that the HMO was allowed to do as it wished with federal money. Four employees were found guilty of using taxpayer funds to help the campaigns of Espada and his son.^[37] In 1996, he was indicted for using $70,000 from a city-financed HMO to fund his unsuccessful reelection campaign.^[38] In 2009, New York State Attorney General Andrew Cuomo investigated Espada's use of the Soundview Health Clinic for personal political reasons.^[39] Clinic offices also advertised Espada's name on the front canopy, displayed campaign posters on clinic grounds, and displayed posters of Espada surrounded by smiling children.^[40]

In 2002, the State of New York pulled funding for some of his non-profits due to "administrative deficiencies and apparent misuse of funds." ^[41]

On April 20, 2010, Cuomo sued Espada for siphoning $14 million from the Soundview Health Clinic for personal expenses. The lawsuit covered 5 years of spending, expenditures which included $80,000 in restaurant bills (which included $20,000 in sushi delivered to Espada's Mamaroneck home), personal trips including to Las Vegas and Puerto Rico, and renting a residence required to establish residency in the district for his Senate race in 2008. Cuomo stated, "Siphoning money from a charity would be egregious under any circumstances, but the fact that this was orchestrated by the state Senate majority leader makes it especially reprehensible. In New York, no one is above the law, and this suit should finally make that clear to Senator Espada."^{[42][43][44][45]}

The lawsuit also sought to remove Espada from the board of directors of Soundview and replace the board, which Cuomo characterized as not an independent body, and "packed with family and friends that Mr. Espada could control directly and indirectly."^[46]

Federal and IRS agents raided two of Espada's offices in the Bronx on April 21, 2010 ^[47] and his office records were subpoenaed the following day.^[48]

When being interviewed by WCBS-NY, Espada walked out of the taping of the show "Eye on New York" on April 24, 2010, after reporter Marcia Kramer revisited issues of his actual residence. Espada got testy when Kramer reminded him that when she approached him last year outside his Mamaroneck home, he donned an orange ski cap and held a baby in front of his face to hide from the camera before speeding off in a car driven by his wife Connie Espada.^[49]

In "Up Close with Diana Williams" on WABC-NY, Espada's defense was characterized as turning personal against Andrew Cuomo. Espada repeatedly called Attorney General Cuomo the "Prince of Darkness" and claimed Cuomo's success to be because of the success of his father, former Gov. Mario Cuomo.^[50][51][52]

Reactions to the investigations

Several state senators, including fellow Democrats Neil Breslin, Darrel Aubertine, and David Valesky, called for Espada to step down from his leadership positions in the New York State Senate.^[53][54] State Senator Martin Golden of Brooklyn also introduced an amendment to force Espada from his majority leader position.^[55]

Nassau County District Attorney Kathleen Rice also said that Espada "cannot lead anymore" amid the investigations against him. State Senator Eric Schneiderman also called for Espada to not only step down from his senate position, but also forfeit his stipend.^[56]

On June 9, 2010, residents from the 33rd Bronx Senate district, which Espada represented, descended upon Espada's out-of-district Mamaroneck home in Westchester County to protest for his ousting.^[57]

On August 3, 2010, Espada was confronted with protestors at the State Capitol. He reacted angrily, took out some money, crumpled it and threw it at the protestors.^[58]

2010 re-election bid

Despite being under investigation by the Bronx District Attorney, the FBI, the IRS, and the New York State Attorney General, Espada ran for re-election to his 33rd State Senate District seat. He was challenged by a number of candidates, including Jose Gustavo Rivera, former Chief of Staff for State Senator Andrea Stewart Cousins, who managed field operations in a number of states for Barack Obama's presidential campaign and had most recently served as Director of Outreach for U.S. Senator Kirsten Gillibrand. Rivera had lived in the 33rd District for over a decade, shortly after arriving from his native Puerto Rico.^[59] The New Roosevelt Initiative (http://www.newrooseveltinitiative.com/) pledged a $250,000 donation to a candidate who seeks to defeat Espada.^[60]

The New York State Democratic Committee launched efforts to oust Espada from the party. The week of July 5, the New York Democratic State Committee sent a letter to Bronx party leaders calling for the cancellation of Espada’s membership. They said Espada did not support party goals because he had joined with Republicans the previous summer in the power play that ground Senate business to a halt for a month. In response, on July 12, 2010, Espada said at a news conference that charges against him were filed out of racism. Espada said, "If you look brown and you're an immigrant, you're not supposed to have power," outside the Bronx Board of Elections office. Furthermore, Espada proclaimed, "I have God on my side!"^[61][62]

On August 9, 2010, two big labor unions — the 1199 SEIU and 32BJ — endorsed Espada's opponent for the 33rd district seat.^[63]

Espada lost the primary election to Rivera on September 14, 2010, 32.66% to 62.21%. In his concession speech, Espada blamed unions, outside influence, and the media for his defeat. Espada also refused to call primary winner Rivera personally.^[64][65]

Federal indictment

On December 14, 2010, Espada and his son, Pedro Gautier Espada, were indicted on six federal counts of embezzlement and theft. The indictment was by U.S. Attorney Loretta E. Lynch, and also announced by New York State Attorney General and Governor-elect Andrew Cuomo. According to Cuomo, the Espadas embezzled public money for personal use, including purchase of food, Broadway show tickets, and a down payment for a Bentley car. They faced up to 55 years in prison if convicted of all charges.^[66][67]

The same day Espada was indicted, he was stripped of his title and position as Senate Majority Leader.^[68]

Conviction

On May 14, 2012, after 11 days of deliberation, a federal jury found Espada guilty of embezzling money from federally funded healthcare clinics.^[69] Espada was sentenced to five years in prison.^[70]

Espada is serving his prison sentence in the Metropolitan Detention Center in Brooklyn, New York. He has complained about conditions there.^[71] His prisoner number is 78764-053 and he is due to be released in October 2017.^[72]

See also

• 2009 New York State Senate leadership crisis
• Recall Petition to recall corrupt politicians

References

1. During the 2009 New York State Senate leadership crisis both Smith and Skelos claimed to be Majority Leader
2. Lovett, Kenneth; Benjamin, Elizabeth; Blain, Glenn (2009-07-09). "GOP Moves to Block Gov. Paterson From Swearing in Ravitch - But Not Fast Enough, It's Already Done". New York Daily News. Retrieved 2016-07-08.
3. Unterburger, A.L.; Gale Research Inc; Delgado, J.L. (1994). Who's who Among Hispanic Americans. Gale Research. ISSN 1052-7354. Retrieved September 10, 2015.
4. Rauh, Grace. "Bronx's Espada To Be Top Hispanic State Official", NY1, June 6, 2008. Accessed June 9, 2009.
5. Pedro Espada Jr.'s Biography, New York State Senate. Accessed June 8, 2009.
6. Staff. "Seven House Primaries Among Most Visible Races in New York Region", The New York Times, September 6, 1988. Accessed June 9, 2009.
7. Martin, Douglas. "About New York — A Waiting Room, Happy Patients and the Future", The New York Times, February 22, 1992. Accessed June 9, 2009.
8. Lynn, Frank. "Primaries for House Combine Issues and Infighting", The New York Times, September 6, 1988. Accessed June 9, 2009.
9. Editorial. "For Congress From New York", The New York Times, September 11, 1988. Accessed June 9, 2009.
10. Verhovek, Sam Howe. "Garcia Is Battling Energetic Rival in Bronx", The New York Times, September 13, 1988. Accessed June 9, 2009.
11. Staff. "Primary Election Results", The New York Times, September 17, 1988. Accessed June 9, 2009.
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13. Jonathan Hicks. "Results of Voting in New York Races", The New York Times, November 7, 1996. Accessed July 24, 2010.
14. New York State Board of Elections. "2000 Election Results: New York State Senate". Accessed July 24, 2010.
15. Jonathan Hicks, "Assemblywoman Wins in Bronx in Second Democratic Primary," The New York Times, October 17, 2002, p. B6
16. Hakim, Danny (July 10, 2009). "Albany Impasse Ends as Defector Rejoins Caucus". New York Times. p. A1. Retrieved 14 November 2016.
17. Peters, Jeremy W. (February 10, 2010). "New York Senate Expels Monserrate Over Assault". New York Times. p. A19. Retrieved 14 November 2016.
19. Gormley, Michael. "GOP, 2 Dems Flip Power Balance in NY Senate", The Washington Post, June 8, 2009. Accessed June 8, 2009.
20. Odato, James. "Two Democrats join Republicans to topple Smith as Senate leader", Times Union (Albany), June 8, 2009. Accessed June 8, 2009.
21. Statement by Senator Pedro Espada Jr., Office of Senator Pedro Espada Jr., June 8, 2009. Accessed June 8, 2009.
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25. Poverty Profiteer? State Sen. Espada Hits Up New York, New York Observer, July, 1996.
26. . Accessed June 9, 2009.
27. Salonstall, David. Sen. Pedro Espada Hounded by Questions on Ethics and Residency. New York Daily News, June 10, 2009. Accessed June 10, 2009.
28. Hakim, Danny. "State Senator-Elect Owes Thousands in Fines", The New York Times, December 5, 2008. Accessed June 10, 2009.
29. After The Coup, Pigeon Resented as 'Hired Gun', 2009.
30. Sedita Can Act on Pigeon Case, Some Prosecutors Say, 2009.
31. GOP Official Accuses Pigeon of Laundering Money from Golisano, 2009.
32. "Federal investigators, IRS Probing Espada's Ties to Firm". New York Daily News. April 19, 2010. Retrieved 14 November 2016.
33. http://www.timesunion.com/AspStories/story.asp?storyID=923170&category=STATE
34. http://wcbstv.com/topstories/espada.legal.troubles.2.1638410.html
35. "AG Accuses Espada Jr. of Pocketing .35M from Sham Program". New York Daily News. April 29, 2010.
36. Goldenberg, Sally (April 29, 2010). "Pedro's Slave Wages". New York Post. Retrieved 14 November 2016.
37. Gearty, Robert; and Ross, Barbara. "Daily News Finds 2 Bronx Lawmakers Have Cozy Ties to Nonprofit Organizations", New York Daily News, May 10, 2009. Accessed June 10, 2009.
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45. "www.ag.ny.gov | New York State Attorney General". ag.ny.gov. Retrieved September 10, 2015.
46. Bray, Chad (April 20, 2010). "Cuomo Sues N.Y. Sen. Espada, Alleges Looting of Not-for-Profit". The Wall Street Journal.
47. Bray, Chad (April 21, 2010). "Cuomo, Federal Prosecutors Conduct Criminal Probe of Espada". The Wall Street Journal.
48. http://wcbstv.com/local/espada.bronx.office.2.1650323.html
49. "Embattled State Senator Pedro Espada Jr. Storms Off in the Middle of TV Interview". New York Daily News. New York. April 25, 2010.
50. "Up Close's Diana Williams the Pedro Espada Lawsuit Filed by Attorney General Andrew Cuomo | abc7ny.com". abclocal.go.com. Retrieved September 10, 2015.
51. FOX. "Fox 5 NY News | WNYW". myfoxny.com. Retrieved September 10, 2015.
52. "Pedro Espada Jr. Labels Cuomo 'The Prince Of Darkness,' Says Attorney General Should Meet Him 'Man To Man' (VIDEO)". Huffington Post. April 23, 2010.
53. Katz, Celeste (April 21, 2010). "Lawmakers:Beat It, Espada". New York. Archived from the original on April 24, 2010. Retrieved 14 November 2016.
54. "State senators call on embattled Senate majority leader Pedro Espada Jr. to step down | syracuse.com". syracuse.com. Retrieved September 10, 2015.
55. "GOP Senator Wants Espada to Step Down | NCPR News". northcountrypublicradio.org. 2010-04-22. Retrieved September 10, 2015.
56. "Rice: Espada Can't Lead Anymore". New York Daily News. New York. April 2010. Archived from the original on June 17, 2012. Retrieved 14 November 2016.
57. http://wcbstv.com/local/pedro.espada.senate.2.1740996.html
58. Video on YouTube
59. Katz, Celeste (May 11, 2010). "Rivera To Challenge Espada: Updated". New York Daily News. New York. Archived from the original on May 14, 2010. Retrieved 14 November 2016.
60. http://www.theepochtimes.com/n2/content/view/34110/
61. "God's on My Side, Says Espada". New York Daily News. New York. July 13, 2010.
62. "Espada Rejects NY Dems' Bid to Dump Him From party". New York Post. July 12, 2010.
63. http://www.observer.com/2010/politics/1199-and-32bj-take-sides-against-espada
64. Seifman, David; Campanile, Carl (September 15, 2010). "Voters Tell Pedro=Coup You!". New York Post. Archived from the original on September 16, 2010. Retrieved 14 November 2016.
65. Dolnick, Sam (September 15, 2010). "In N.Y. Legislature Races, Espada and Monserrate Lose". The New York Times.
66. "Outgoing Bronx State Sen. Pedro Espada Indicted". New York Daily News. New York. December 14, 2010.
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72. "Federal Bureau of Prisons — Inmate Locator". bop.gov. Federal Bureau of Prisons. Retrieved 14 November 2016.

Notes

1. Both Malcolm Smith and Dean Skelos claimed to be Majority Leader.