Aqueduct Inquiry

Inquiry Aimed at Transfer of Aqueduct Bid Papers

The state inspector general is investigating whether a senator or Senate staff member gave internal documents regarding the competition for a slot-machine franchise at Aqueduct Racetrack to a lobbyist for one of the bidders, an official with knowledge of the investigation said Thursday.

The documents, prepared last year by a Senate lawyer, included details of the offers submitted by six consortiums seeking the lucrative contract to operate 4,500 electronic slot machines at the track in Queens, a franchise worth hundreds of millions of dollars a year. The documents were eventually obtained by Carl Andrews, a lobbyist for the Aqueduct Entertainment Group, according to the official, who declined to be identified because the investigation was continuing.

The group, also known as A.E.G., was awarded the contract by Gov. David A. Paterson in January, but the offer was rescinded amid allegations of political favoritism and questions about A.E.G.’s ability to obtain a license to operate the gambling operation. The bidding has been opened up again.

The earlier bidding process and selection of A.E.G. has been under review by the inspector general’s office since February. It has sought an array of documents from state agencies, lobbyists and bidders. It has subpoenaed Mr. Andrews and the Senate.

The Senate president pro tem, Malcolm A. Smith, has close ties to the Rev. Floyd H. Flake, a Queens minister and a former member of the House of Representatives, who worked to develop community support for A.E.G. in return for a small stake in the project.

In a court appearance on Wednesday, Philip Foglia, a deputy inspector general who is leading the investigation, said Mr. Andrews, a former state senator, had initially agreed to cooperate with the subpoena. But he ended his discussion with investigators, Mr. Foglia told a judge, when they inquired about the Senate documents, which could potentially have aided A.E.G. in reconfiguring its bid to outmaneuver the other bidders. The subpoena was reported Thursday by The New York Post.

Mr. Andrews is seeking to quash the subpoena, saying in court papers that he should not be involved in the investigation because he did not lobby the governor’s office or any state agency. Mr. Andrews’s lawyer did not return a phone call seeking comment.

It is unclear whether providing internal Senate memos to Mr. Andrews would have violated any state laws, given the unusual nature of the award process for the Aqueduct franchise. Instead of adhering to strict procurement procedures, state legislation left the selection of a winner to the governor and the leaders of the Assembly and the Senate.

In a statement, Austin Shafran, a spokesman for Senate Democrats, said, referring to the inspector general: “There is an ongoing I.G. investigation into executive agencies, which he has authority over, and the Senate is cooperating fully. We’ve compiled and collected work product and submitted requested documents to the I.G., as well as scheduled witnesses to testify in their inquiry. And we will continue to meet their requests.”

Mr. Andrews was a Democratic state senator from Brooklyn before joining the Spitzer administration in 2007 and staying on when Mr. Paterson became governor. Mr. Andrews soon resigned, however, after accusations that he had tried to intimidate an official at the State Liquor Authority into renewing liquor licenses for restaurants owned by the Cipriani family.

The authority voted two to one in 2008 to accept the Ciprianis’ $500,000 settlement offer, rather than revoke their liquor licenses for more than four dozen violations of state law at nine venues, including the Rainbow Room at Rockefeller Center, Harry Cipriani at the Sherry-Netherland Hotel and Cipriani Wall Street. A year earlier, Giuseppe Cipriani and his father, Arrigo, pleaded guilty to charges related to tax evasion and were fined $10 million.