NEW YORK -(Dow Jones)- New York Attorney General Andrew Cuomo sued New York state Senate Majority Leader Pedro Espada Jr. and 19 current and former officers and directors of a Bronx not-for-profit corporation, alleging they looted the group.
In a statement, Cuomo said the lawsuit alleges Espada diverted charitable assets from Comprehensive Community Development Corp., which is also known as Soundview, and used the money for himself, his family, his friends and his political operation.
The lawsuit claims Espada, a Democrat, siphoned more than $14 million from Soundview in the past five years, including an unconditionally guaranteed severance package worth an estimated $9 million.
"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.
Soundview was founded by Espada for the purpose of providing health care to people in the South Bronx, Cuomo said. Espada serves as president and chief executive of Soundview, Cuomo said.
Copyright 2009 Dow Jones Newswires
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