To paraphrase Captain Renault, were shocked, shocked to find that secret Albany wheeling dealing was going on in the failed AEG Aqueduct deal. Earlier this year, Governor Paterson picked Aqueduct Entertainment Group to install slot machines at the Queens Aqueduct, but AEG's selection was controversial, not only because the group was politically connected but also because its bid sucked. Now, according to the Daily News, the State Inspector General has issued a report, finding "a bidding process rife with inside dealing, secret lobbying and more than $100,000 in campaign donations from the bidders."
Aqueduct Bidding Full Of Secret Bidding, Campaign Cash
A Closer Look At Paterson's Allegedly Corrupt "Racino" Deal
Though Gov. Paterson is already looking for a new company to run video slot machines at the Aqueduct Racetrack, the controversy over the Aqueduct Entertainment Group isn't over yet. According to a confidential document released yesterday, AEG ranked a distant fourth among the six bidding groups at the time, yet was initially chosen by Paterson, quite possibly because of political connections.
Paterson: Aqueduct Deal Will Be Done In One Month
After the state rejected a politically-connected company's bid to bring video slot machines to the Aqueduct Racetrack amidst allegations of favoritism, Gov. Paterson said he wants to restart the selection process within a month. Paterson said he hopes to choose a winner soon so the state can benefit from a much-needed $300 million in licensing fees before the state's March 31 budget deadline, though officials might turn out delivering the budget late.
Queens Assemblywoman Puts Half-Million Into Empty Lot
A Queens nonprofit connected to Assemblywoman Vivian Cook spent $560,500 in cash to buy a vacant lot containing nothing but "a decrepit shed, a beat-up picnic table and a dirty paint can"—even though the property's value was only estimated at $287,000, according to the Post. Using money from the Port Authority intended to win community support for the construction of the AirTrain line, the nonprofit purchased the over-priced lot and spent $255,625 on "street cleaning" and "street maintenance," even though the city already provides street sweeping.
State Begins Search For New Aqueduct "Racino" Deal
After an initial deal fell apart amidst controversy and allegations of political favoritism, state officials will soon start searching for a new company to operate video slot machines at the Aqueduct Racetrack. Unlike the previous round of bidding that ended with Gov. Paterson's selection of the Aqueduct Entertainment Group, this time the Governor's office will actually establish a set criteria that will be used to judge applicants. "We want to limit the leaders' involvement," a Paterson official told the Daily News.
State Rejects Aqueduct Deal
State officials refused to grant a gaming license to the politically-connected consortium selected by Gov.Paterson to open a casino at the Aqueduct Racetrack—meaning the company will not install slot machines at the Queens facility or receive the lucrative contract. "The Division of the Lottery has concluded that it cannot issue a gaming license to Aqueduct Entertainment Group. Therefore, the State has officially withdrawn its support for AEG," the governor's office wrote in a statement.
Jay-Z and Flake Pull Out Of Aqueduct Deal
Instead of disclosing information about their personal finances and their spouses' personal finances, rap mogul Jay-Z and influential former Congressman Rev. Floyd Flake have bailed out of the Aqueduct Entertainment Group—the casino company selected by Gov. Paterson to operate slot machines at the Aqueduct Racetrack. The Observer reports that Jay-Z and Flake, who both own less than 1 percent shares in AEG, withdrew because they "felt the confidentiality surrounding their personal information could not be maintained."
Jay-Z and Russell Simmons Subpoenaed In Aqueduct Deal
Investigators researching the controversial selection of a politically-connected casino operator to run slot machines at the Aqueduct Racetrack are expected to subpoena Jay Z, Russell Simmons, and influential reverend and former Congressman Floyd Flake. According to the Post, Jay-Z and Flake are partners in Aqueduct Entertainment Group—the casino company that Gov. Paterson chose for the contract even though it initially said it would generate the least revenue, before drastically changing its estimates. Simmons reportedly was an advisor to Penn National Gaming, a losing bidder. Dozens of others are expected be questioned about the deal, including bidders who were passed over in favor or AEG.
Paterson "Gnashing His Teeth" Over Queens Racino Deal
Speculators say the NY Times's Paterson scoop has to do with drugs, swinger parties or some combination of the two, but as scandals pile up, it seems like the news could have to do with 4,500 video slot machines planned for a racetrack in Queens. In a move that by some accounts "smacked of favoritism" Gov. Paterson awarded the project to a company that operates a shabby casino in Elko, Nevada. Now, sources say, Paterson is "paranoid" and lashing out at aids over the corrupt-looking gambling deal. According to one insider, "He sits gnashing his teeth, looking around for scapegoats among the people around him. He's lecturing them, launching into tirades, and he's demoralized the entire staff in the process."
Macca Fan Gets Refund For Citi Field Show
One man took to NY1 after being duped by AEG Live when he bought tickets to one of Paul McCartney's Citi Field concerts this summer. They report that Roger Scholl bought two tickets (at $190 a pop) in the field's B6 section, but that section was moved to a less desirable area after the transaction went through. Scholl explains, "What they did was they took where B6 was supposed to be, where the seats were that we had bought, and on the new seating chart there was a section called B5-1 that had physically taken the location where B6 had originally been." After complaints to both the Mets and AEG, he still ended up in the new B6 area when the show started. The Mets have now told NY1: "The seating plans for the Paul McCartney shows underwent some late adjustments due to changes in the staging and production that affected a small number of seats. The Mets worked diligently with concert promoters and Paul McCartney's management to relocate customers whose views in their estimation were compromised." Though they say the sightlines remained consistent with the price, AEG has given disgruntled customer a refund.

