Fed probe centers on Flake in AEG subpoena

February 15, 2010 10:10AM

Former Congressman Rev. Floyd Flake, an investor in Aqueduct Entertainment Group and the leader of a publicly-subsidized housing empire in Queens, is coming under close scrutiny as a federal probe into the selection the new Aqueduct racino operator gets underway. Flake, 65, has close ties to both state Senate President Malcolm Smith and Representative Gregory Meeks, and is being accused of using his political influence to profit financially. Flake has agreed to invest $625,000 in the Aqueduct racino project, according to AEG. He has said he believes the deal will bring a welcome influx of jobs to the neighborhood. Last week, prosecutors subpoenaed documents related to AEG and New Direction Development Corp., in which Flake, Smith and Meeks have all been involved. Other documents reportedly requested were related to projects sponsored by Smith for New Direction and other non-profits with ties to Flake. Flake ‘s church — one of the country’s richest with $92 million in assets — owns 630 housing units for low-income seniors, a grammar school, and six commercial properties in Jamaica. Flake and his wife, who bought a $1.8 million mansion in Old Westbury in 2001, personally earn $1 million annual from his various organizations including Empowerment Development, a for-profit group whose mission is to invest in the Aqueduct Racetrack.