Corruption Scandal Rocks New York Democratic Establishment
by Stephan Tawney on October 25, 2010
A report issued by New York state Inspector General Joseph Fisch reveals a startling level of corruption within the Democratic establishment that currently leads the state. It all focuses on a contract to run a casino, the contract being worth potentially billions of dollars.
http://www.buffalonews.com/city/politics/article226640.ece
An eight-month probe by state Inspector General Joseph Fisch of one of the largest-ever state contracts — a 30-year franchise to run a downstate casino worth potentially billions of dollars — reveals an almost breathtaking array of abuses by top Democratic officials controlling the legislative and executive branches.Among those implicated: Governor David Paterson, Senate Democratic Conference Leader John Sampson, and Assembly Speaker Sheldon Silver. The report also singles out key members of the Democratic leaders
Those include: leaking of confidential bidding information to a favored company, potential bid-rigging, pay-to-play campaign donations, arm twisting by dozens of lobbyists and an indifference to facts that all resulted in a “political free-for-all” across the highest reaches of state government.
To cap it off, on the night the lucrative contract was awarded, a who’s who of Democratic lawmakers partied at a “victory” bash at the home of one of the winning bidder’s lobbyists, who also happens to be a former state senator.
http://www.buffalonews.com/city/politics/article226640.ece
Scandal over downstate casino jolts Albany
Published:October 21, 2010, 11:21 AM
Updated: October 22, 2010, 07:24 AM
ALBANY — In a town grown weary of corruption cases, the findings of an investigation of Albany's newest scandal rocks the very foundation of the Capitol's three-men-in-a-room system of governing.
An eight-month probe by state Inspector General Joseph Fisch of one of the largest-ever state contracts — a 30-year franchise to run a downstate casino worth potentially billions of dollars — reveals an almost breathtaking array of abuses by top Democratic officials controlling the legislative and executive branches.
Those include: leaking of confidential bidding information to a favored company, potential bid-rigging, pay-to-play campaign donations, arm twisting by dozens of lobbyists and an indifference to facts that all resulted in a "political free-for-all" across the highest reaches of state government.
To cap it off, on the night the lucrative contract was awarded, a who's who of Democratic lawmakers partied at a "victory" bash at the home of one of the winning bidder's lobbyists, who also happens to be a former state senator.
The inspector general sharply rebuked the actions of Gov. David A. Paterson, Senate Democratic Conference Leader John Sampson and Assembly Speaker Sheldon Silver for their handling of a massive contract award in January to locate a casino at Aqueduct racetrack in Queens.
Singled out for much of the stinging criticism — and possible criminal problems — are key members of the Democratic leadership of the State Senate, at a time when Democrats are struggling to hold onto their razor-thin majority in the Nov. elections.
"As a public official for over 50 years, as a taxpayer and a resident of New York state, I am outraged and saddened by the conduct conducted throughout this process by the people who had a responsibility to serve the public," Fisch said.
The inspector general turned his findings over to the U.S. Attorney in New York and the Manhattan district attorney's office for possible criminal action. It is uncertain which officials could face serious problems, though Fisch noted a number of lawmakers and staffers whose testimony appeared to stretch the truth. A legislative ethics committee also was asked to to look into the matter.
Aqueduct Entertainment Group was awarded the contract to run the casino and its 4,500 approved slot machines after Senate Democrats asked for the politically connected bidder to spread around campaign donations, including to Buffalo's Sen. Antoine Thompson, and after Sampson and the Senate's top Democratic official, Angelo Aponte, leaked confidential and sensitive financial information about the other five bids to people tied to AEG, including longtime Democratic consultant Hank Sheinkopf and Carl Andrews, a former Senate Democrat who was an AEG lobbyist.
The Paterson administration scuttled the contract earlier this year after the contract became the subject of probes by Fisch and federal prosecutors. At one time, Delaware North, a private Buffalo company, was in line for the lucrative contract but that deal fell through.
The investigation portrayed a disinterested and uninformed Paterson being fed misinformation from top staffers. The staffers left out such key information as fiscal experts in the governor's own budget division, as well as regulators at the state Lottery Division, advising that AEG was not qualified to get the contract worth potentially billions of dollars to the winner over the next three decades.
"All that information was available. The governor just did not seem to care," said Fisch, a former criminal court judge who was appointed as inspector general by Paterson.
Senate Democratic leaders, along with top staffers, meanwhile, put delays into the process to help AEG, whose partnership included people with political ties to the Democrats. Aponte was singled out by Fisch as one of those who prosecutors should consider charging with perjury for his answers in the inspector general's probe. But he said others, without naming names, could face criminal problems.
Fisch said Sampson was among the most active cheerleaders for AEG, and that at one point he demanded that a real estate developer friend and a group from Brooklyn, where Sampson lives, be a part of the AEG project.
After the AEG deal was scuttled by the Paterson administration earlier this year, Fisch said Sampson told AEG that it should sue the state to get the contract restored.
"This is Sen. Sampson," an incredulous Fisch said. He noted that besides Sampson giving confidential information to Carl Andrews, a former state senator and AEG lobbyist at the time, Sampson's lack of recall during his interview with investigators was remarkable.
"I stopped counting the number of 'I don't recalls' when I reached 100," he said of Sampson's testimony.
Sampson, who canceled a previously scheduled interview with The Buffalo News on Thursday, issued a statement saying he would begin an internal review to develop "recommendations for better coordinating external communications with advocates and lobbyists." The report also said Senate President Malcolm Smith, a Queens Democrat, was heavily involved in the deal-making behind the scenes — despite publicly claiming he took himself out of the process because of his friendship with Rev. Floyd Flake, an influential Democratic leader who was involved with the AEG partners.
The bidding process took Albany's three-men-in-a-room system — in which major decisions of government are made in secret by the governor and two legislative leaders — down a new path: the Legislature didn't even have to rubber-stamp the selection of AEG by Paterson, Sampson and Silver.
"When the normal practice is for everything to happen behind closed doors and in secret and with lobbyists, you are asking for something like this to happen eventually," said Lawrence Norden, a lawyer with the New York University Law School's Brennan Center for Justice, an Albany watchdog group.
Republicans, eager to use the investigation in close Senate contests around the state, including Western New York, pounced on the findings.
"Every single major leader of the Senate Democrats is being recommended to the federal prosecutor or the district attorney to be investigated criminally. I think it speaks loudly as to the need for change," said Senate Republican Leader Dean Skelos of Long Island.
"It's obvious with one-party rule [in Albany] the Democrats, especially in the Senate, felt that the law and the rules do not apply to them," Skelos said in an interview.
Paterson, in a statement, did not address the specific charges by Fisch, but sought to highlight the subsequent process — more open and with tighter bidding rules — that recently led to the selection of Genting New York, which has ties to a Malaysian company, to run the casino.
Fisch said Silver failed to properly use his veto power to kill the AEG bid, even though his top aides had told him that AEG should not be awarded the contract. Fisch said Silver "should have exercised his responsibilities" by not agreeing to something he knew was wrong.
"It may have been good politics, but it was not in the public interest," the inspector general added.
Fisch said legislative leaders let down New Yorkers. "They had one constituent: the constituency was the state of New York. They failed, and they failed miserably," he said.
In response, Silver said he was the one who demanded certain conditions be placed on the bidding process, which eventually led to AEG being tossed out of the running after it was approved by himself, Sampson and Paterson.
Taxpayers were pinched by the wrongdoing Fisch says his office uncovered. The selection of AEG came after numerous delays and changes to the bidding process for a casino that is supposed to bring the state at least $1 million a day in revenue-sharing proceeds. Officials believe the casino is worth about $400 million a year to Albany.
The casino was first approved in 2001, along with other racetrack casinos in places like Hamburg and Batavia. But a series of political and legal delays led to what eventually became four Aqueduct bidding processes under three different gubernatorial administrations.
Delaware North, a private Buffalo company, was tapped by Paterson in 2008; that fell apart the following spring when the company could not come up with a promised $370 million upfront franchise fee payment.
Racing and Wagering Board Chairman John Sabini, the inspector general's report said, expressed pleasure that Delaware North was out; the report said Sabini had occasional lunches and got campaign donations while he was a senator from Karl O'Farrell, an AEG insider.
After Delaware North lost the deal, a new, expedited and highly secretive process began that required Paterson, Silver and Sampson to unanimously agree on a vendor 3/4 and without legislative approval. Delaware North was among the bidders, but the bidder most fiscal experts agreed should have gotten the award, Las Vegas casino mogul Steve Wynn, dropped out after numerous delays in Albany.
AEG was then tapped in January, but was later dropped when the state Lottery Division said it could not license the group. A new process 3/4 with set timetables and public disclosures and a ban on lobbying 3/4 recently led to the selection of Genting New York, which paid the state $380 million in an upfront franchise fee. Construction is due to begin next week on the long-delayed project.
The Fisch criticism swept wide 3/4 hitting across the Democratic leadership in Albany. He said among those involved in the bidding process was longtime Paterson aide David Johnson, who earlier this year was charged with choking his girlfriend, an episode that helped end Paterson's chance of running for governor after he acknowledged reaching out to the victim a day before she did not appear in court.
Johnson, who had little policy experience, pushed for AEG and was at a post-award party at the home of Andrews, the AEG lobbyist, the Inspector General said. Also at that party was Sampson, Smith and Senate Racing Committee Chairman Eric Adams. AEG won the award with a promised upfront fee for Albany of $300 million.
The findings went through in great detail what everyone in Albany knew at the time: the bidding process was a mess in which the procurement process was never spelled out and bid requirements kept changing. But the inspector general's report said the ever-changing process was no accident and part of a scheme to give the leg up to AEG.
"This process was doomed from the start, and at each turn, our state leaders abdicated their public duty, failed to impose ethical restraints and focused on political gain at a cost of millions to New Yorkers," Fisch said. "Unfortunately, and shamefully, consideration of what was in the public's best interest, rather than the political interest of the decision makers, was a mater of militant indifference to them."
Paterson's top counsel, Peter Kiernan, apparently never told the governor of Aqueduct Entertainment's licensing and fiscal problems as raised by state agencies over its bid, Fisch said.
And he slammed another top Paterson aide, Larry Schwartz, who Fisch called the "self-proclaimed chief operating officer" of the state, for ignoring key problems AEG's bid.
The report identified $100,000 in donations from AEG and two other bidders, including Delaware North. Most of the donations went to Senate Democrats.
The 300-page report accused officials involved of "failing to fulfill their public duty."
tprecious@buffnews.com
http://www.wkbw.com/news/local/Senator-Antoine-Thompson-Noted-In-Bid-Rigging-Report-105478983.html
An eight-month probe by state Inspector General Joseph Fisch of one of the largest-ever state contracts — a 30-year franchise to run a downstate casino worth potentially billions of dollars — reveals an almost breathtaking array of abuses by top Democratic officials controlling the legislative and executive branches.
Those include: leaking of confidential bidding information to a favored company, potential bid-rigging, pay-to-play campaign donations, arm twisting by dozens of lobbyists and an indifference to facts that all resulted in a "political free-for-all" across the highest reaches of state government.
To cap it off, on the night the lucrative contract was awarded, a who's who of Democratic lawmakers partied at a "victory" bash at the home of one of the winning bidder's lobbyists, who also happens to be a former state senator.
The inspector general sharply rebuked the actions of Gov. David A. Paterson, Senate Democratic Conference Leader John Sampson and Assembly Speaker Sheldon Silver for their handling of a massive contract award in January to locate a casino at Aqueduct racetrack in Queens.
Singled out for much of the stinging criticism — and possible criminal problems — are key members of the Democratic leadership of the State Senate, at a time when Democrats are struggling to hold onto their razor-thin majority in the Nov. elections.
"As a public official for over 50 years, as a taxpayer and a resident of New York state, I am outraged and saddened by the conduct conducted throughout this process by the people who had a responsibility to serve the public," Fisch said.
The inspector general turned his findings over to the U.S. Attorney in New York and the Manhattan district attorney's office for possible criminal action. It is uncertain which officials could face serious problems, though Fisch noted a number of lawmakers and staffers whose testimony appeared to stretch the truth. A legislative ethics committee also was asked to to look into the matter.
Aqueduct Entertainment Group was awarded the contract to run the casino and its 4,500 approved slot machines after Senate Democrats asked for the politically connected bidder to spread around campaign donations, including to Buffalo's Sen. Antoine Thompson, and after Sampson and the Senate's top Democratic official, Angelo Aponte, leaked confidential and sensitive financial information about the other five bids to people tied to AEG, including longtime Democratic consultant Hank Sheinkopf and Carl Andrews, a former Senate Democrat who was an AEG lobbyist.
The Paterson administration scuttled the contract earlier this year after the contract became the subject of probes by Fisch and federal prosecutors. At one time, Delaware North, a private Buffalo company, was in line for the lucrative contract but that deal fell through.
The investigation portrayed a disinterested and uninformed Paterson being fed misinformation from top staffers. The staffers left out such key information as fiscal experts in the governor's own budget division, as well as regulators at the state Lottery Division, advising that AEG was not qualified to get the contract worth potentially billions of dollars to the winner over the next three decades.
"All that information was available. The governor just did not seem to care," said Fisch, a former criminal court judge who was appointed as inspector general by Paterson.
Senate Democratic leaders, along with top staffers, meanwhile, put delays into the process to help AEG, whose partnership included people with political ties to the Democrats. Aponte was singled out by Fisch as one of those who prosecutors should consider charging with perjury for his answers in the inspector general's probe. But he said others, without naming names, could face criminal problems.
Fisch said Sampson was among the most active cheerleaders for AEG, and that at one point he demanded that a real estate developer friend and a group from Brooklyn, where Sampson lives, be a part of the AEG project.
After the AEG deal was scuttled by the Paterson administration earlier this year, Fisch said Sampson told AEG that it should sue the state to get the contract restored.
"This is Sen. Sampson," an incredulous Fisch said. He noted that besides Sampson giving confidential information to Carl Andrews, a former state senator and AEG lobbyist at the time, Sampson's lack of recall during his interview with investigators was remarkable.
"I stopped counting the number of 'I don't recalls' when I reached 100," he said of Sampson's testimony.
Sampson, who canceled a previously scheduled interview with The Buffalo News on Thursday, issued a statement saying he would begin an internal review to develop "recommendations for better coordinating external communications with advocates and lobbyists." The report also said Senate President Malcolm Smith, a Queens Democrat, was heavily involved in the deal-making behind the scenes — despite publicly claiming he took himself out of the process because of his friendship with Rev. Floyd Flake, an influential Democratic leader who was involved with the AEG partners.
The bidding process took Albany's three-men-in-a-room system — in which major decisions of government are made in secret by the governor and two legislative leaders — down a new path: the Legislature didn't even have to rubber-stamp the selection of AEG by Paterson, Sampson and Silver.
"When the normal practice is for everything to happen behind closed doors and in secret and with lobbyists, you are asking for something like this to happen eventually," said Lawrence Norden, a lawyer with the New York University Law School's Brennan Center for Justice, an Albany watchdog group.
Republicans, eager to use the investigation in close Senate contests around the state, including Western New York, pounced on the findings.
"Every single major leader of the Senate Democrats is being recommended to the federal prosecutor or the district attorney to be investigated criminally. I think it speaks loudly as to the need for change," said Senate Republican Leader Dean Skelos of Long Island.
"It's obvious with one-party rule [in Albany] the Democrats, especially in the Senate, felt that the law and the rules do not apply to them," Skelos said in an interview.
Paterson, in a statement, did not address the specific charges by Fisch, but sought to highlight the subsequent process — more open and with tighter bidding rules — that recently led to the selection of Genting New York, which has ties to a Malaysian company, to run the casino.
Fisch said Silver failed to properly use his veto power to kill the AEG bid, even though his top aides had told him that AEG should not be awarded the contract. Fisch said Silver "should have exercised his responsibilities" by not agreeing to something he knew was wrong.
"It may have been good politics, but it was not in the public interest," the inspector general added.
Fisch said legislative leaders let down New Yorkers. "They had one constituent: the constituency was the state of New York. They failed, and they failed miserably," he said.
In response, Silver said he was the one who demanded certain conditions be placed on the bidding process, which eventually led to AEG being tossed out of the running after it was approved by himself, Sampson and Paterson.
Taxpayers were pinched by the wrongdoing Fisch says his office uncovered. The selection of AEG came after numerous delays and changes to the bidding process for a casino that is supposed to bring the state at least $1 million a day in revenue-sharing proceeds. Officials believe the casino is worth about $400 million a year to Albany.
The casino was first approved in 2001, along with other racetrack casinos in places like Hamburg and Batavia. But a series of political and legal delays led to what eventually became four Aqueduct bidding processes under three different gubernatorial administrations.
Delaware North, a private Buffalo company, was tapped by Paterson in 2008; that fell apart the following spring when the company could not come up with a promised $370 million upfront franchise fee payment.
Racing and Wagering Board Chairman John Sabini, the inspector general's report said, expressed pleasure that Delaware North was out; the report said Sabini had occasional lunches and got campaign donations while he was a senator from Karl O'Farrell, an AEG insider.
After Delaware North lost the deal, a new, expedited and highly secretive process began that required Paterson, Silver and Sampson to unanimously agree on a vendor 3/4 and without legislative approval. Delaware North was among the bidders, but the bidder most fiscal experts agreed should have gotten the award, Las Vegas casino mogul Steve Wynn, dropped out after numerous delays in Albany.
AEG was then tapped in January, but was later dropped when the state Lottery Division said it could not license the group. A new process 3/4 with set timetables and public disclosures and a ban on lobbying 3/4 recently led to the selection of Genting New York, which paid the state $380 million in an upfront franchise fee. Construction is due to begin next week on the long-delayed project.
The Fisch criticism swept wide 3/4 hitting across the Democratic leadership in Albany. He said among those involved in the bidding process was longtime Paterson aide David Johnson, who earlier this year was charged with choking his girlfriend, an episode that helped end Paterson's chance of running for governor after he acknowledged reaching out to the victim a day before she did not appear in court.
Johnson, who had little policy experience, pushed for AEG and was at a post-award party at the home of Andrews, the AEG lobbyist, the Inspector General said. Also at that party was Sampson, Smith and Senate Racing Committee Chairman Eric Adams. AEG won the award with a promised upfront fee for Albany of $300 million.
The findings went through in great detail what everyone in Albany knew at the time: the bidding process was a mess in which the procurement process was never spelled out and bid requirements kept changing. But the inspector general's report said the ever-changing process was no accident and part of a scheme to give the leg up to AEG.
"This process was doomed from the start, and at each turn, our state leaders abdicated their public duty, failed to impose ethical restraints and focused on political gain at a cost of millions to New Yorkers," Fisch said. "Unfortunately, and shamefully, consideration of what was in the public's best interest, rather than the political interest of the decision makers, was a mater of militant indifference to them."
Paterson's top counsel, Peter Kiernan, apparently never told the governor of Aqueduct Entertainment's licensing and fiscal problems as raised by state agencies over its bid, Fisch said.
And he slammed another top Paterson aide, Larry Schwartz, who Fisch called the "self-proclaimed chief operating officer" of the state, for ignoring key problems AEG's bid.
The report identified $100,000 in donations from AEG and two other bidders, including Delaware North. Most of the donations went to Senate Democrats.
The 300-page report accused officials involved of "failing to fulfill their public duty."
tprecious@buffnews.com
http://www.wkbw.com/news/local/Senator-Antoine-Thompson-Noted-In-Bid-Rigging-Report-105478983.html
Sen. Thompson Denies Knowing Origin of Campaign Money Tied to Bidding Scandal
October 22, 2010 BUFFALO, NY (WKBW) - Senator Antoine Thompson (D) 60th District, along with four other New York State senators received thousands of dollars in campaign funds from the Aqueduct Entertainment Group (AEG). Even governor David Paterson is named in the report for seeking political backing from one of the company's partners after the deal.
The report was issued by State Inspector General Joseph Fisch. It shows the governor's office and state legislative leaders selected AEG to run slot machines at the Aqueduct Race Track in Queens, even though the company offered the state $100 million less than other bidders and was struggling with licensing and other financial problems.
"There was not legitimate non political reason for AEG to have survived beyond September of 2009," said Fisch.
As part of the deal the Senate Democratic Campaign Committee directed AEG to contribute thousands of dollars to the campaigns of five state senators, including Senator Antoine Thompson, he received $8600 from AEG.
But Senator Thompson denies knowing where the money came from. He released this statement today,
"I absolutely had no involvement in any pay to play transactions and negotiations whatsoever in the selection of a bidder for the Aqueduct Racetrack deal in Queens, nor do I sit on the Racing, Gaming and Wagering Committee. I knew nothing about the potential origins of the contributions, as my campaign accepts contributions from various sources. However, in our effort to exercise excess caution in this matter and to provide transparency, we are going to return the money to donors."
http://www.nydailynews.com/ny_local/2010/02/14/2010-02-14_spotlights_on_flake_link_to_aqueduct_deal_lifts_curtain_on_ministers_multimillio.html
The feds also requested documents related to pork-barrel items Smith sponsored for New Direction and nonprofits tied to Flake, sources say.
One of Flake's partners in AEG, Darryl Greene, was booted from the consortium after questions arose about his 1999 guilty plea to stealing $500,000 through a no-show job recruiting minority firms.
Flake did not return repeated phone calls and refused last week to speak about Aqueduct to reporters outside his church. In church, he defended the deal, insisting it would bring much-needed jobs to the area.
AEG spokesman Andrew Frank said Flake has agreed to invest $625,000 in the project through a firm called Empowerment Development Group.
That investment has raised questions about whether he's taking advantage of his considerable political clout to line his pockets.
Gov. Paterson, one of three Albany leaders who picked the consortium, is courting Flake's endorsement for reelection. Assembly Speaker Sheldon Silver (D-Manhattan), who can torpedo the deal, has asked for an investigation into how AEG was vetted.
Meeks, Flake's one-time aide, defended the deal as good for the neighborhood.
"I hear this stuff about Rev. Flake and Darryl Greene and no one has talked about the expertise for what they did," Meeks said. "They should get extra credit for trying to include the local community. Who's better in southeast Queens to do development work than Rev. Flake?"
Ever since he abruptly retired from Congress in 1997, Flake has mixed the spiritual and the entrepreneurial to build affordable housing, nurture small businesses and even transport churchgoers to Atlantic City casinos.
For decades, presidential, gubernatorial, mayoral, legislative and City Council candidates have sought his endorsement.
As his political influence has grown, so have the assets of his church - with some help from city, state and federal coffers.
The report was issued by State Inspector General Joseph Fisch. It shows the governor's office and state legislative leaders selected AEG to run slot machines at the Aqueduct Race Track in Queens, even though the company offered the state $100 million less than other bidders and was struggling with licensing and other financial problems.
"There was not legitimate non political reason for AEG to have survived beyond September of 2009," said Fisch.
As part of the deal the Senate Democratic Campaign Committee directed AEG to contribute thousands of dollars to the campaigns of five state senators, including Senator Antoine Thompson, he received $8600 from AEG.
But Senator Thompson denies knowing where the money came from. He released this statement today,
"I absolutely had no involvement in any pay to play transactions and negotiations whatsoever in the selection of a bidder for the Aqueduct Racetrack deal in Queens, nor do I sit on the Racing, Gaming and Wagering Committee. I knew nothing about the potential origins of the contributions, as my campaign accepts contributions from various sources. However, in our effort to exercise excess caution in this matter and to provide transparency, we are going to return the money to donors."
http://www.nydailynews.com/ny_local/2010/02/14/2010-02-14_spotlights_on_flake_link_to_aqueduct_deal_lifts_curtain_on_ministers_multimillio.html
Subpoena of Aqueduct Entertainment Group will probe Rev. Floyd Flake's multimillion-dollar empire
Sunday, February 14th 2010, 4:00 AM
Egan-Chin/News
A non-profit group tied to Rev. Floyd Flake, an investor in Aqueduct Entertainment Group, will be examined after federal prosecutors subpoenaed AEG-related documents. For years, the Rev. Floyd Flake quietly built a multimillion-dollar taxpayer-subsidized empire in Queens while playing powerbroker to local and national politicians.
Those quiet days are over.Today, the spotlight shines brightly on Flake as an investor in Aqueduct Entertainment Group, a consortium just chosen to run a lucrative slot machine racino franchise at Aqueduct Racetrack.
Last week, federal prosecutors subpoenaed AEG-related documents in a growing probe of New Direction Local Development Corp., a nonprofit tied to Flake and his protégés - state Senate President Malcolm Smith (D-Queens) and Rep. Gregory Meeks (D-Queens).The feds also requested documents related to pork-barrel items Smith sponsored for New Direction and nonprofits tied to Flake, sources say.
One of Flake's partners in AEG, Darryl Greene, was booted from the consortium after questions arose about his 1999 guilty plea to stealing $500,000 through a no-show job recruiting minority firms.
Flake did not return repeated phone calls and refused last week to speak about Aqueduct to reporters outside his church. In church, he defended the deal, insisting it would bring much-needed jobs to the area.
AEG spokesman Andrew Frank said Flake has agreed to invest $625,000 in the project through a firm called Empowerment Development Group.
That investment has raised questions about whether he's taking advantage of his considerable political clout to line his pockets.
Gov. Paterson, one of three Albany leaders who picked the consortium, is courting Flake's endorsement for reelection. Assembly Speaker Sheldon Silver (D-Manhattan), who can torpedo the deal, has asked for an investigation into how AEG was vetted.
Meeks, Flake's one-time aide, defended the deal as good for the neighborhood.
"I hear this stuff about Rev. Flake and Darryl Greene and no one has talked about the expertise for what they did," Meeks said. "They should get extra credit for trying to include the local community. Who's better in southeast Queens to do development work than Rev. Flake?"
Ever since he abruptly retired from Congress in 1997, Flake has mixed the spiritual and the entrepreneurial to build affordable housing, nurture small businesses and even transport churchgoers to Atlantic City casinos.
For decades, presidential, gubernatorial, mayoral, legislative and City Council candidates have sought his endorsement.
As his political influence has grown, so have the assets of his church - with some help from city, state and federal coffers.
http://www.barrypopik.com/index.php/new_york_city/entry/aquemuck_aqueduct_racetrack_scandal/
Entry from April 03, 2010
Aquemuck (Aqueduct racetrack scandal)
The Aqueduct Racetrack in Queens was proposed to be converted into a “racino” (racing + casino) in the 2000s to help reverse years of declining attendance. Questions about the racino proposals caused both the New York (NY) Post and the New York (NY) Daily News to use the term “Aquemuck” in 2010.
Wikipedia: Aqueduct Racetrack
Aqueduct Racetrack, known as the Big A, is a thoroughbred horse-racing facility located in the neighborhood of Ozone Park in the New York City borough of Queens.
(...)
Proposal for Racino
The New York State Legislature legalized video gambling devices at racetracks in 2001. However the opening of a racino at the track has hit various problems. Video lottery terminals similar to slot machines were approved at five locations, including Aqueduct, Finger Lakes Race Track, Monticello Raceway, Vernon Downs, and Yonkers Raceway. The revenue would be divided between the racetracks and the state and would allow tracks to increase purses and attract better quality horses in races.
In 2007, the state issued a request for proposals to operate the video lottery terminals at Aqueduct. Among the bids received was a $2 billion proposal by the Shinnecock Indian Nation to open a casino at the track. The proposal was in conjunction with Marian Ilitch, a co-owner of the Detroit Red Wings. The proposal according to most sources was dead on arrival since even if the Shinnecocks received official Bureau of Indian Affairs recognition as a tribe (which they are still awaiting), the Aqueduct Casino would still have to be approved by the New York State Legislature, the Bureau of Indian Affairs, and Aqueduct would have to first be taken into trust by the Department of Interior since the Shinnecocks historically had not owned property in Queens. In October 2008, the state selected the Delaware North as the winning bidder among three proposals to build a racino at Aqueduct. The 330,000 square foot facility would include 4,500 slot machines. However, these plans fell apart in March 2009 when the developer was unable to make a $370 million upfront payment to the state.
In July 2009, seven companies submitted bids to develop a racino at Aqueduct: Aqueduct Entertainment Group, Delaware North, MGM, Mohegan Sun, Penn National Gaming, SL Green Realty, and Steve Wynn. Some developers indicated that a portion of the slot machines could open as early as April 2010. However, the selection of an operator for the casino was delayed for several months because State officials frequently changed the rules and could not reach an agreement on the winning bidder, prompting Steve Wynn to pull out of the running in November. On January 29, 2010, Governor David Paterson announced that the Aqueduct Entertainment Group would run the casino.
Aqueduct Entertainment Group partners included GreenStar Services Corporation, Turner Construction Company, Levine Builders, The Darman Group, Empowerment Development Corporation, Navegante Group, PS&S Design, Siemens AG and Clairvest Group. The appointment generated controversy because of charges that AEG, which had the worst initial bid of those bidding, was allowed to change its bid so that it had the best. Paterson was reported to have demanded that the ownership of an affirmative action component. During this time singer Jay-Z, through his company Gain Global Investments Network LLC, then got a 7 percent ownership of AEG and charges were made that Jay-Z and Paterson had a personal relationship. U.S. prosecutors investigated the bidding process particularly in the light that AEG won the bid two days after Queens megachurch pastor Floyd Flake (who is also an AEG investor) threatened to switch his support in the 2010 governor race from Paterson to Andrew Cuomo. New York house speaker Sheldon Silver also threatened not to sign off on the deal. Paterson maintained there was no quid pro quo. On March 9, 2010 Paterson, Flake, and Jay-Z withdrew from further involvement. Paterson said he was recusing himself on the advice of his lawyers. Flake, who had 0.6 percent share said the case was distracting from his other projects. On March 11, 2010, the state withdrew its support for the AEG bid and announced that a new group would be selected through an “expedited, transparent, apolitical and publicly accountable process.”
New York (NY) Post
Feds wade into the Aque-muck
Graft probers seize state info on slots award
By FREDRIC U. DICKER in Albany and ISABEL VINCENT and CARL CAMPANILE in NY
Posted: 2:51 AM, February 11, 2010
Federal prosecutors have seized records involving the controversial Aqueduct Racetrack video-slots project awarded to the AEG group as part of a sweeping corruption probe, officials said yesterday.
The US Attorney’s Office in Manhattan subpoenaed the state Lottery Division on Tuesday for records filed by the winning consortium—Aqueduct Entertainment Group—whose partners include powerhouse minister and former Rep. Floyd Flake, a good friend of Gov. Paterson, sources said.
The sweeping probe involves the incestuous relationship between AEG and a Queens nonprofit group, New Direction Local Development Corp.
New York (NY) Daily News headlines - April 3, 2010
Dems to blame for Aquemuck debacle, Silver tells probers
In secret testimony before the state inspector general’s office, Assembly Speaker Sheldon Silver said Senate Dems pushed for the disastrous Aqueduct racino deal.
http://www.nypost.com/p/news/local/albany_slimebuster_5Yym5mc7blpDIW0SQwwfrK
Corrupt Albany politicians may have finally met their match.
He said he wanted a watchdog "with the authority and power and jurisdiction to look at the whole ball of wax."
Fisch noted that, under the law, the state inspector general only has authority to probe wrongdoing in the state executive branch or officers who fall under the employ of the governor -- not state lawmakers.
And he said there was no credible, independent agency to police the Legislature.
A beefed-up corruption-fighting agency would require approval of the governor and Legislature. Fisch said the appointment of the agency should be made by Gov.-elect Andrew Cuomo.
"He has demonstrated his commitment to reform," Fisch said during a meeting with The Post editorial board.
Asked if the state's legislative leaders are committed to ethics reform, Fisch said, "I think the facts speak for themselves."
His bold plan comes on the heels of a devastating report he issued about the Aqueduct casino bid-rigging scandal.
The probe accused Albany players -- particularly Senate Democratic leader John Sampson and other key Senate officials -- of cavorting with lobbyists to steer the contract to a favored bidder, AEG.
A rogues' gallery of lawmakers from both parties has ended up in handcuffs for various crimes in recent years, largely thanks to federal prosecutors -- not state ethics probers.
"I was saddened by the elimination of an entity which had all the authority and power to look at every aspect of government -- city, local, state, legislature, judiciary, executive -- everything," Fisch said.
Fisch said he intends to meet with Cuomo to discuss corruption fighting and ethics reform.
A Cuomo spokesman, asked about Fisch's proposal, referred to the incoming governor's "Clean Up Albany" campaign policy book.
In it, Cuomo proposed setting up an "independent" state ethics commission with enforcement powers to probe and punish ethics violations and law-breaking by members of the executive and legislative branches.
Government watchdogs consider the Legislative Ethics Commission, which should police lawmakers but rarely does, a joke.
Wikipedia: Aqueduct Racetrack
Aqueduct Racetrack, known as the Big A, is a thoroughbred horse-racing facility located in the neighborhood of Ozone Park in the New York City borough of Queens.
(...)
Proposal for Racino
The New York State Legislature legalized video gambling devices at racetracks in 2001. However the opening of a racino at the track has hit various problems. Video lottery terminals similar to slot machines were approved at five locations, including Aqueduct, Finger Lakes Race Track, Monticello Raceway, Vernon Downs, and Yonkers Raceway. The revenue would be divided between the racetracks and the state and would allow tracks to increase purses and attract better quality horses in races.
In 2007, the state issued a request for proposals to operate the video lottery terminals at Aqueduct. Among the bids received was a $2 billion proposal by the Shinnecock Indian Nation to open a casino at the track. The proposal was in conjunction with Marian Ilitch, a co-owner of the Detroit Red Wings. The proposal according to most sources was dead on arrival since even if the Shinnecocks received official Bureau of Indian Affairs recognition as a tribe (which they are still awaiting), the Aqueduct Casino would still have to be approved by the New York State Legislature, the Bureau of Indian Affairs, and Aqueduct would have to first be taken into trust by the Department of Interior since the Shinnecocks historically had not owned property in Queens. In October 2008, the state selected the Delaware North as the winning bidder among three proposals to build a racino at Aqueduct. The 330,000 square foot facility would include 4,500 slot machines. However, these plans fell apart in March 2009 when the developer was unable to make a $370 million upfront payment to the state.
In July 2009, seven companies submitted bids to develop a racino at Aqueduct: Aqueduct Entertainment Group, Delaware North, MGM, Mohegan Sun, Penn National Gaming, SL Green Realty, and Steve Wynn. Some developers indicated that a portion of the slot machines could open as early as April 2010. However, the selection of an operator for the casino was delayed for several months because State officials frequently changed the rules and could not reach an agreement on the winning bidder, prompting Steve Wynn to pull out of the running in November. On January 29, 2010, Governor David Paterson announced that the Aqueduct Entertainment Group would run the casino.
Aqueduct Entertainment Group partners included GreenStar Services Corporation, Turner Construction Company, Levine Builders, The Darman Group, Empowerment Development Corporation, Navegante Group, PS&S Design, Siemens AG and Clairvest Group. The appointment generated controversy because of charges that AEG, which had the worst initial bid of those bidding, was allowed to change its bid so that it had the best. Paterson was reported to have demanded that the ownership of an affirmative action component. During this time singer Jay-Z, through his company Gain Global Investments Network LLC, then got a 7 percent ownership of AEG and charges were made that Jay-Z and Paterson had a personal relationship. U.S. prosecutors investigated the bidding process particularly in the light that AEG won the bid two days after Queens megachurch pastor Floyd Flake (who is also an AEG investor) threatened to switch his support in the 2010 governor race from Paterson to Andrew Cuomo. New York house speaker Sheldon Silver also threatened not to sign off on the deal. Paterson maintained there was no quid pro quo. On March 9, 2010 Paterson, Flake, and Jay-Z withdrew from further involvement. Paterson said he was recusing himself on the advice of his lawyers. Flake, who had 0.6 percent share said the case was distracting from his other projects. On March 11, 2010, the state withdrew its support for the AEG bid and announced that a new group would be selected through an “expedited, transparent, apolitical and publicly accountable process.”
New York (NY) Post
Feds wade into the Aque-muck
Graft probers seize state info on slots award
By FREDRIC U. DICKER in Albany and ISABEL VINCENT and CARL CAMPANILE in NY
Posted: 2:51 AM, February 11, 2010
Federal prosecutors have seized records involving the controversial Aqueduct Racetrack video-slots project awarded to the AEG group as part of a sweeping corruption probe, officials said yesterday.
The US Attorney’s Office in Manhattan subpoenaed the state Lottery Division on Tuesday for records filed by the winning consortium—Aqueduct Entertainment Group—whose partners include powerhouse minister and former Rep. Floyd Flake, a good friend of Gov. Paterson, sources said.
The sweeping probe involves the incestuous relationship between AEG and a Queens nonprofit group, New Direction Local Development Corp.
New York (NY) Daily News headlines - April 3, 2010
Dems to blame for Aquemuck debacle, Silver tells probers
In secret testimony before the state inspector general’s office, Assembly Speaker Sheldon Silver said Senate Dems pushed for the disastrous Aqueduct racino deal.
http://www.nypost.com/p/news/local/albany_slimebuster_5Yym5mc7blpDIW0SQwwfrK
State inspector general pushes for government watchdog
Last Updated: 9:47 AM, November 12, 2010
Posted: 1:16 AM, November 12, 2010
EXCLUSIVE
State Inspector General Joseph Fisch yesterday proposed the creation of a crimebusting office with sweeping powers to investigate all branches of state and local governments -- including members of the scandal-scarred Legislature.
"These are drastic times that require unorthodox solutions," Fisch told The Post. He said he wanted a watchdog "with the authority and power and jurisdiction to look at the whole ball of wax."
Fisch noted that, under the law, the state inspector general only has authority to probe wrongdoing in the state executive branch or officers who fall under the employ of the governor -- not state lawmakers.
AP
Andrew Cuomo
A beefed-up corruption-fighting agency would require approval of the governor and Legislature. Fisch said the appointment of the agency should be made by Gov.-elect Andrew Cuomo.
"He has demonstrated his commitment to reform," Fisch said during a meeting with The Post editorial board.
Asked if the state's legislative leaders are committed to ethics reform, Fisch said, "I think the facts speak for themselves."
His bold plan comes on the heels of a devastating report he issued about the Aqueduct casino bid-rigging scandal.
The probe accused Albany players -- particularly Senate Democratic leader John Sampson and other key Senate officials -- of cavorting with lobbyists to steer the contract to a favored bidder, AEG.
A rogues' gallery of lawmakers from both parties has ended up in handcuffs for various crimes in recent years, largely thanks to federal prosecutors -- not state ethics probers.
They include former Queens Assemblyman and labor leader Brian McLaughlin, Queens Assemblyman Tony Seminerio, ex-Senate Majority Leader Joseph Bruno and Bronx Sen. Guy Velella, among others.
Fisch said a new watchdog agency could be modeled after the defunct State Investigations Commission. "I was saddened by the elimination of an entity which had all the authority and power to look at every aspect of government -- city, local, state, legislature, judiciary, executive -- everything," Fisch said.
Fisch said he intends to meet with Cuomo to discuss corruption fighting and ethics reform.
A Cuomo spokesman, asked about Fisch's proposal, referred to the incoming governor's "Clean Up Albany" campaign policy book.
In it, Cuomo proposed setting up an "independent" state ethics commission with enforcement powers to probe and punish ethics violations and law-breaking by members of the executive and legislative branches.
Government watchdogs consider the Legislative Ethics Commission, which should police lawmakers but rarely does, a joke.
No comments:
Post a Comment