Tax Fraud: Former NY Senate Majority Leader Guilty
On October 12, 2012, the US Attorney’s Office for the Eastern District of New York announced that Pedro Espada, Jr. pled guilty to filing a false federal tax return. Earlier in the case, Espada was convicted on four counts of stealing federal funding from Bronx non-profit health clinics.
Espada faces a maximum sentence of 43 years in prison and $2 million in forfeitures, fines, and restitution. His plea agreement states he will not appeal the jury’s verdict, and he now faces up to 2 years in prison at sentencing.
Espada was the former CEO and president of the Soundview Healthcare Center which is a network of clinics for the underprivileged in the Bronx. Soundview was established as a charitable organization and received millions from the United States Department of Health and Human Services.
In order to try and hide money he took from Soundview, he filed a false personal tax return in 2005. He concealed the money through a janitorial company he owned in the Bronx. Additionally, he defrauded the IRS by claiming a property he sold on Leland Avenue in the Bronx was is primary residence. He lived in Mamaroneck in Westchester County.
According to evidence presented at the trial, Espada charged over $100,000 in personal expenses to the charity’s credit card. About $10,000 included home renovations, and the other $80,000 included restaurant bills, spa treatments, and a trip to Puerto Rico. Additionally, he used charity funds to buy a $60,000 GMC Yukon for his wife and put a $20,000 down-payment on a Mercedes for himself.
In all, Espada stole about $500,000 from Soundview. During the scheme, he was still making $100,000 a year.
United States Attorney Loretta E. Lynch stated, “Today’s guilty pleas signal the end of an era. For years, Pedro Espada, Jr. betrayed the trust of the people of the Bronx by taking money designated to provide health services to a struggling community and using those funds to prop up his own lavish lifestyle.”
Source: Federal Bureau of Investigation
Comments
Must Read
Mail Fraud Quick OverviewMail fraud refers to any deceitful crime that includes the use of the postal system.
Accountant Fraud At A GlanceAccountant fraud (or corporate accounting scandals) often occurs as a result of an accountant not disclosing factual statements to their clients (individuals or businesses) about the state of their finances.
All You Need To Know About Mail Fraud ChargesMail fraud charges are used most frequently in federal white collar crime cases to either make an initial charge or add a charge to a list of existing ones.
All You Need To Know About Reporting BlindnessOne of the most common disability fraud types Disability fraud falling into the category of "reporting blindness" can also include criminals taking advantage of acts intended to help the legally blind return to work.
All You Need to Know About Supreme Court CasesThere are two cases that involve the proper criminal procedure involving the prosecution of wire fraud.
All You Need to Know About The History Identity TheftIdentity theft, though it has taken on new forms and has become significantly more common, is not a new crime.
Bait and Switch DefinitionIt may not necessarily be all that obvious all the time, but the bait and switch tactic used by both the retail and political world should be of no surprise to people living in nations which are fueled by consumerism and politics.
Bankruptcy Fraud At A GlanceBankruptcy fraud is any kind of fraud involving filing for bankruptcy in an attempt to gain some kind of profit from the overall scheme.