Judge Frederic Block
Despite finding Pedro Espada Jr. (Pedro) guilty of stealing funds from Soundview Healthcare Network, an entity receiving federal funds, contrary to 18 USC §666(a)(1)(A), the jury failed to reach a verdict on the charges against Pedro Gautier Espada (Gautier), who later pleaded guilty to stealing federal funds in violation of 18 USC §641. Both defendants pleaded guilty to tax charges. At their sentencing the court found the IRS an identifiable victim of the tax offenses, and ordered restitution. However, because Soundview went out of business the government, proposed, on July 30, that the U.S. Health Resources and Services Administration (HRSA) be deemed the victim of defendants’ theft. Like the defendant in United States v. Ekanem, Gautier was convicted of stealing federal funds whose source, the HRSA, was an identifiable victim of the theft. However, distinguishing United States v. Emor and United States v. Kamuvaka, the court concluded that HRSA was not a “victim” of Pedro’s theft. The funds in question were legitimately the property of Soundview, not HRSA, at the time of the theft. The government never questioned Soundview’s entitlement to the funds it received from HRSA. Nor did Soundview obtain the funds from HRSA through fraud.
