Feds Subpoena Paterson's "Racino" Choice For Nonprofit Ties

Following Gov. Paterson's controversial selection of Aqueduct Entertainment Group to operate video slot machines at the Aqueduct Racetrack in Queens, federal prosecutors have reportedly seized records related to the politically-connected winning bidder. Investigators are researching ties between Aqueduct Entertainment Group and a Queens nonprofit, which was last in the news for allegedly fleecing Hurricane Katrina victims out of money raised on their behalf.

Critics claim Gov. Paterson selected the Aqueduct Entertainment Group to run the Queens racino in order to win the much-needed support of Rev. Floyd Flake, an influential former congressman who happens to be a shareholder in the company. The Governor has rejected those allegations and said he selected the Aqueduct Entertainment Group based on merit. The Post reports today the US Attorney's Office in Manhattan subpoenaed the state Lottery Division for records on Aqueduct Entertainment Group and its ties with the New Direction Development Corp., a Queens charity founded by Rep. Gregory Meeks (D-Queens) and state Sen. Malcolm Smith (D-Queens), which is taking fire for allegedly raising $31,000 for Hurricane Katrina victims and only giving them $1,392.

Although the nonprofit's treasurer heads the development branch of Flake's church, and the husband of one of the charity's founders withdrew his involvement from racetrack plan because of a past criminal conviction, an Aqueduct Entertainment Group source told the Times Union: "There is no connection between New Direction and AEG." Paterson's counsel emphasized that the U.S. Attorney's inquiries are about New Direction—not his selection of Aqueduct Entertainment Group. "No investigatory agency has contacted the governor's office about the selection of AEG ... and to the best of our knowledge, no such investigation into this selection exists."

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By Ben Muessig in News on February 11, 2010 3:07 PM

Comments [rss]

l3iodeez

So, is there or is there not a connection between AEG and New Direction? Albany is crooked, but it seems as likely that the Governor made a politically motivated choice as it is that his political enemies are manufacturing a case against him. Neither possibility is beyond the pale in New York State Politics.

Just ignore the speculation and only pay attention to hard evidence, of which there is none so far in this case. All we know is that the Feds are investigating POSSIBLE connection between AEG and NDD. Nothing has been proven. Lets wait for the facts before we start sharpening the pitchforks.

Snoopy

AHA! The negro plot of 1741 returns.

Ph

David Paterson seems so innocuous in delivery and presence yet he's so damn crooked its entertaining. He's like your dorky suburban neighbor that's running a sex club afterhours. You really can't even picture the dude engaging those sorts of activities but...surprise!

Guest

i think he's just worse at hiding that 'other stuff' than the others, which indeed comes off as comical. he should be a role model for all future politicians.