New York State Governor David Paterson Under Federal Investigation: Aqueduct "Racino" Bids Subpoenaed

Now David Paterson has a measurable scandal to worry about.

Federal investigators are seeking details about the bidding process for Aqueduct -- particularly the background checks of the bidders.

The Albany Times Union reported that the U.S. Attorney had subpoenaed documents from the Lottery Division.

Early reports have deflected attention upon Floyd Flake and one of his own charitable organizations, New Directions Local Development Corp.

But this is New York, where neither Republicans nor Democrats have been immune to conflicts of interest.

Reuters had more details on the federal subpoenas, including noting that New Directions was founded by Congressman Gregory Meeks and state Senate President Malcolm Smith to aid residents of Queens and the Rockaways.

The New York Daily News outlined all the key figures in the Aqueduct Entertainment Group, including donors who have given heavily to current State Senate President Malcolm Smith.

Ben Smith of Politico argued that Paterson is hiding behind the sexual scandal to distract away from his many other problems -- like his management of the state.

WPIX put forth another angle, that it could have been a "quid pro quo" for an endorsement.

"Flake had said publicly that he was considering endorsing Attorney General Andrew Cuomo for governor, if he decides to run. The loss leading of a black Democratic leader's support would be a serious setback for Paterson. After the contract was awarded to Flake's group, the Governor met with the Queens leader, but Paterson's office denies any endorsement was discussed."

The New York Post called it a "shady" Aqueduct deal -- but this has been nothing new in Albany for either casino or horse racing negotiations for generations.

The Wall Street Journal explained the U.S. Attorney's curiosity may have been piqued by the presence of Darryl Green, a convicted criminal, as a partner with Flake.

"Green’s Darman Group was removed as a key partner in the project, but that was after the fact, the Post said. Green had been convicted of misappropriating $500,000 in government funds about 10 years ago."

The Wall Street Journal noted that a prior criminal conviction is "a big no-no" in getting a gaming license.

And using Indian reservations and failed racetracks as front for casino gambling is much better?

Regardless of whatever backstory has fueled this real scandal, Ben Smith returned to a quote by Fred Dicker on Monday about the competence of David Paterson.

“... Lack of focus on critical issues, his poor work habits and late-night, booze-fueled 'disappearances' at trendy nightclubs and undisclosed locations — when even his state police bodyguards don't know where he is [and] his penchant for spreading false rumors about aides and a peculiar reliance on two little-known assistants."

That sounds like more than one lawmaker in Albany ...