Cuomo claims Espada looted non-profit

ALBANY, N.Y. (WIVB) - Another high level political drama is unfolding in Albany where the budget remains undone. The Attorney General is suing Senate Majority Leader Pedro Espada, accusing the lawmaker of looting his own non-profit group.

Espada said, "Because politically he had to find something."

State Senate Majority Leader Pedro Espada firing back at Attorney General Andrew Cuomo over the lawsuit Cuomo filed against Espada and Soundview Health Care, a non-profit agency Espada founded and is currently the CEO. In his lawsuit, Cuomo charges Soundview funneled close to $14 million to Espada, his family, friends, and political supporters over the last five years.

$80,000 of that went for tabs at restaurants, including $20,000 for sushi. Espada charged $450,000 for his personal use on the agency's American Express Card. Soundview also provided Espada with a $25,000 a month housing allowance, which Cuomo says he used for an apartment in the Bronx, his home district, because Espada actually lives in Westchester County. And if Espada ever leaves Soundview, his contract guarantees him a $9 million severance package, which Cuomo contends would bankrupt the agency.

Espada said, "Let me just say, that is one of many lies and falsehoods that are included in this complaint and it will be answered directly. We will answer all of these matters in court."

Espada never did answer any questions directly in his late afternoon news conference, instead accusing Attorney General Cuomo of retaliation for Espada and fellow Democrat Hiram Monserrate leading the so-called coup of the State Senate last summer.

"All of this amounts to absolutely nothing. No wrong doing on my part nor on the part of my family," said Espada.

The Attorney General's lawsuit is separate from an FBI investigation linking Espada and his Chief Attorney Steve Pigeon to a money-laundering probe. Pigeon is the former Chairman of the Erie County Democratic Committee.