Posted Mar 2, 2010, 5:20 PM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
Posts: 51,914
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http://www.nypost.com/p/news/nationa...kfHoKdnfylsdAO
Flake and pals face a grilling
JAY-Z Subpoena on slots deal.
Post Staff
March 2, 2010
Quote:
Former US Rep. Floyd Flake and rap moguls Jay Z and Russell Simmons will be subpoenaed today in the state probe into the controversial contract to operate slot machines at Aqueduct Racetrack, The Post has learned.
Flake, a Queens minister and personal friend of Gov. Paterson, and Jay-Z are partners in AEG, the company that was chosen by the governor to operate 4,500 slot machines at the track.
Simmons is an adviser to Penn National Gaming, one of the losing bidders.
The subpoenas were issued by the State Inspector General's Office, which is working with the US attorney. The three are the first of dozens likely to be quizzed. Aqueduct Entertainment Group offered the state the least money up front, had unrealistic revenue estimates and provided fewer financial details than competitors, according to Saratoga Racing and Gaming, a partner in a losing bid from Delaware North.
Saratoga noted that AEG's casino partner, the Nevada-based Navegante Group, was hardly a household name compared to fellow bidders SL Green's Hard Rock; MGM's Peebles Delaware North-Harrah's; and Penn National, a national gaming firm.
AEG was allowed to revise its bid to offer the cash-starved state an upfront license fee of $200 million. Delaware North, Penn National and SL Green each bid at least $300 million, but with strings attached.
AEG has defended its proposal as sound.
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