Feds Investigating Aqueduct Casino Deal

While Governor Paterson has said that he'd serve out his term in office and that the only way he'd leave is either because the voters ousted him or he left in a box, it looks like federal prosecutors might find something that would send him packing in a far more colorful fashion.


They're investigating the Aqueduct casino deal.

PIX News has learned that federal prosecutors are investigating Governor David Paterson’s awarding of a lucrative contract to a politically connected group to run a gaming center at Aqueduct Raceway.

The embattled Governor who appears to have dodged the bullet of rumors and innuendo that had been circulating over a purported “bombshell” story being prepared by the New York Times, is now part of a probe by the Eastern District U.S. Attorney’s office in Brooklyn.

Two reliable sources confirm the investigation is “very fresh,” but could not say precisely what it is prosecutors are looking at other than questions about public integrity.

Paterson has been under fire by members of his own staff and legislative leaders for awarding the contract to Aqueduct Entertainment Group, a group that includes former Congressman Rev Floyd Flake, whose political support the Governor had been aggressively seeking.

There are quite a few influential Democrats involved in this deal, and if prosecutors bring charges, it's going to hit at the Democratic establishment in Queens and New York City in general. This isn't something that can be so easily brushed off. Among those who might find themselves perp walked is none other than Malcolm Smith, who is the top Democrat in the State Senate.