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New York Governor David Patterson may be on the verge of yet another scandal. People have recently been putting one of his latest business decisions under the microscope for possible ethics violations. It all has to do with his recent friendship with rapper Jay-Z.

In January, event promotion company Aqueduct Entertainment Group (AEG) landed a very lucrative multi-million dollar contract with New York state officials. They were given the rights to upgrade the existing Aqueduct Race Track venue and turn it into a race track and gambling site (sometimes referred to as a racino.) It is to be the only legal gambling site in New York City so as you can imagine there was a lot of competition involved in the bidding process.

The question of the ethics involved in the decision arose when it was revealed that Patterson’s friend Jay-Z holds a seven percent stake in AEG through his firm Gain Global Investments Network LLC.

Patterson established a friendship with superstar Jay-Z last year during a 9/11 benefit concert. It was later that month that the rap star signed a deal with AEG executives. It is this agreement that has prompted a federal investigation into whether or not Patterson showed an unfair favor to AEG’s contract because of Jay-Z’s involvement.

Of course both AEG and Patterson have denied that any such connection exists.

AEG claims that they courted Jay-Z for much different reasons. AEG Spokesman  Jonathan Rosen told the New York Post,  "Given (Jay-Z's) superstardom and his long and deep connection to New York, the partners thought he could bring a unique perspective to shaping a facility that would truly be an entertainment destination…The partners were looking to bring in someone who could bring marketing and community advice to the team."

Patterson’s staff however was quicker to the point. When asked about possible ethics violations a female staffer gave the following statement, "There is absolutely no relationship between Governor Paterson's friendship with Jay-Z and the choice of AEG."

 

 

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