2 charged with embezzling federal funds in Bronx

Police say two people have been charged with stealing tens of thousands of dollars from a Bronx nonprofit organization and using the money for personal purchases.

Federal authorities indicted Richard Izquierdo Arroyo and Margarita Villegas Wednesday, who they believe embezzled federal funds from SBCC Management. Arroyo is the nephew of City Councilwoman Maria Del Carmen Arroyo and the grandson of Assemblywoman Carmen Arroyo. SBCC Management provides low-income housing in the South Bronx and is federally funded.

Prosecutors and the city's Department of Investigation say Arroyo and Villegas charged more than $180,000 for dinners at Tavern on the Green, plane tickets to San Juan and clothing from Tommy Hilfiger, among other purchases, but only paid back $6,300. Investigators say the spending occurred between June 2002 and August 2008.

Investigators speculated that the management company also donated money to Carmen Arroyo's campaign. Both Councilwoman Arroyo and Assemblywoman Arroyo have worked for SBCC in the past.

AP wire services contributed to this article.

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