Local Espada link rebuffed

Local News

April 22, 2010

---NIAGARA--- Niagara Gazette The Niagara Gazette Thu Apr 22, 2010, 12:06 AM EDT

NIAGARA FALLS — A manager of a Town of Niagara accounting firm says its address is inadvertantly being linked to an investigation involving Senate Majority Leader Pedro Espada Jr.

The television station WCBS in New York City and multiple media outlets reported this week that Espada is the focus of a tax and money laundering probe being conducted by federal authorities.

Reports suggest that part of the investigation involves payments made by a Bronx company to GDP Consulting, a firm that lists its address as 7305 Porter Road. The Porter Road location identified in the reports is the same as the Parenti Accounting Group, a company owned by the father of one-time state Assembly candidate Gary Parenti.

Wednesday night, Michael Parenti, accounting and tax manager of the business and Gary’s brother, said GDP is a client and does not operate out of the Porter Road address.

Michael Parenti said it’s common practice for full-service accounting firms to accept mail for some of the their clients, including tax and legal documents. He said the accounting business receives mail from “numerous other clients.”

He did not say where GDP does operate from.

Reports involving the Espada investigation suggest that part of the inquiry involves payments made by a Bronx company to GDP Consulting, a firm that lists its address as 7305 Porter Road. Reports say the review relates to payments made by GDP Consulting to A-1 Multi-Service, LLC, a company that shares an address with a cigar store in the Bronx. Some media outlets have reported that the owner of the cigar store was unaware of A-1’s presence and had no knowledge or involvement in the company.

Federal law enforcement officials indicated there was no ongoing local investigation into Parenti or Espada.

Jean Bowman, a spokesperson with the U.S. Attorney’s Office in Buffalo, referred questions to her colleagues in the agency’s Eastern District office in New York City.

Robert Nardoza, public affairs officer for the U.S. Attorney’s New York City office, said he could not confirm or deny the existence of an investigation before declining further comment.

An individual at Parenti Accounting who answered a phone call from the Gazette said the office conducts accounting business and accounting business only.

Gary Parenti did not respond to a request for comment.

The Associated Press reported that federal authorities conducted a raid Wednesday as part of an investigation involving a government-funded clinic run by Espada Jr. The raid comes one day after New York’s attorney general accused him of siphoning money from the clinic.

About a dozen FBI and IRS agents appeared Wednesday at the Soundview Healthcare Network in the Bronx.

They removed items from a large storage container behind the building. They also stacked boxes on the grass, leafing through their contents and writing notes.

Espada’s representative declined comment.

FBI spokesman Jim Margolin said only that the search was part of an ongoing investigation.

On Tuesday, Attorney General Andrew Cuomo announced a lawsuit accusing Espada of siphoning $14 million from the clinic. It said the money was used for lavish restaurant meals, trips to Las Vegas and Espada’s campaign.

Espada called it a litany of falsehoods.

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