Grandson, Nephew of Bronx Politicians Pleaded Guilty to Embezzlement of SBCC

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Carmen Arroyo, Richard Izquierdo-Arroyo | View Comments

Non-profit looters, Richard Izquierdo-Arroyo and Margarita Villegas

By Alicia Cruz
The Black Urban Times

The grandson of Assemblywoman Carmen Arroyo (D-Bronx) pleaded guilty in Manhattan Federal Court Friday to one count of embezzlement after admitting he embezzled $115,000 from a taxpayer-funded nonprofit to finance his life of lavish and make campaign donations to his grandmother.

The city’s Department of Investigation and federal prosecutors delved into the expenditures of Richard Izquierdo-Arroyo and found that he charged $15,000 worth of clothes and shoes from Tommy Hilfiger, Coach and Polo Ralph Lauren to the group’s American Express credit card.

There were $66,000 spent on meals at Tavern on the Green and another upscale steakhouse and $48,000 on hotels and airfare for fancy Caribbean vacations.

Izquierdo-Arroyo, 33, was the president of South Bronx Community Corporation (SBCC), which used taxpayer funds to run low-income apartments in the Bronx. The organization received millions of dollars in federal housing funds in addition to the city funds it received.

Arroyo admitted that one of his extravagant purchases included having new flooring put down in his grandmother’s district office as well as hiring interns for his aunt, Bronx Councilwoman Maria del Carmen Arroyo (pictured below).


Margarita Villegas, director of SBCC, pleaded guilty earlier this month to one count of embezzlement for robbing the SBCC Management Corp of at least $50,000 and is facing 10 to 16 months, but Manhattan Federal Judge Alvin Hellerstein could sentence her to up to 10 years.

Michael Rosen, attorney for Villegas, told the New York Daily News that his client was not enjoying the high life. “She didn’t go to Bergdorf’s, Bendel’s or Saks,” said Rosen. “She went to Dress Barn.”

Arroyo is facing 10 to 12 months in prison when he is sentenced in June.

So far, neither of the Bronx politicians have been charged with any crimes associated with Arroyo’s embezzlement scam.

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