U.S. attorney's office subpoenas Hempstead for records of work at Malibu Beach Park
The subpoena asks for correspondence, contracts, invoices and other documents from 2001 to the present related to vendor Butch Yamali's work at Malibu Beach Park. Credit: Howard Schnapp
The U.S. attorney for the Eastern District of New York on Thursday served the Town of Hempstead with a subpoena for records on a vendor who runs Hempstead's popular Malibu Beach Park, according to a town memo obtained by Newsday.
Hempstead Supervisor Laura Gillen sent the memo, the authenticity of which was confirmed by the town, to the town attorney, comptroller, parks commissioner and other Hempstead officials. Gillen asked them to “fully comply” with the subpoena, which is seeking documents related to the vendor, Dover Gourmet Corp., and its chief executive, Butch Yamali.
“Any attempts to in any way hinder this investigation, such as by hiding, covering up, deleting or destroying records related to this investigation will also be immediately reported to the FBI agent in charge of this investigation, with whom my office is cooperating,” Gillen wrote in the memo.
Nassau OTB on Glen Cove Road in Carle Place on July 21. Credit: Howard Schnapp
The U.S. government has awarded Nassau and Suffolk’s off-track betting agencies millions of dollars from the federal Paycheck Protection Program, according to a federal database that listed both OTBs as nonprofits and Nassau OTB as a “female-owned” enterprise.
The U.S. Small Business Administration approved loans of $2 million to $5 million each for the Nassau and Suffolk OTBs, according to an SBA database.
The PPP loan program was created in April with the aim of providing small businesses with cash to make payroll so they can avoid having to furlough or lay off employees because of the coronavirus pandemic. The SBA says it will forgive the loans after reviewing whether the companies have met criteria for retaining the employees.
The Nassau and Suffolk OTBs, which operate horse-racing betting parlors and together employ about 450 people, are public benefit corporations that are supposed to pass along their profits to the counties. Suffolk OTB also operates Jake's 58 Casino Hotel in Islandia, while Nassau OTB generates revenue from its complement of 1,000 video lottery terminals at Aqueduct Racetrack in Queens.
The Coronavirus Aid, Relief, and Economic Security Act, signed into law on March 27, makes eligible for PPP loans small businesses, nonprofit or veterans organizations, and tribal business concerns, as long as they employ up to 500 employees. There are exceptions to the size rule, depending on the industry. Sole proprietors, independent contractors and the self-employed can also qualify for the loans.
A federal Treasury Department guideline makes no mention of local governments, such as counties, cities, towns and villages. It also doesn't explicitly exclude the OTBs. The three other OTBs in the state also were approved for loans.
Yamali, who said he has pumped millions of dollars into improving Mailbu since he began operating the Lido Beach recreation complex in 2009, said he has "nothing to hide."
"I've been a respected vendor in all different municipalities for 30 years," he said. "I didn't do anything wrong."
Yamali said he has not been contacted by federal officials.
Gillen and John Marzulli, a spokesman for the U.S. attorney’s office, declined to comment.
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