Source: Flake, Jay-Z Out of AEG

Azi Paybarah — Tue, 09 Mar 2010 18:05:24 -0400

Rev. Floyd Flake and rapper Jay-Z are pulling out today from AEG, the company which bid recently won a lucrative contract to run video lottery terminals at Aqueduct, according to a source familiar with the group's make-up.

Flake, a powerful reverend and former congressman, and Jay-Z, a multi-faceted rapper, each had less than 1 percent stake in the company. But, under new rules, had to submit detailed information about their personal finances, and that of their spouses. The two felt the confidentiality surrounding their personal information could not be maintained, according to a source.

The Post reported that Governor David Paterson was set to withdraw his support for AEG if the group did not submit information about all their investors by noon today.

UPDATE: The founder of AEG, Jeffrey Levine, issued the following statement: "Aqueduct Entertainment Group is continuing to move forward to complete the MOU, so that we can pay the state $300 million by March 31st and break ground on this vital job-creating project as soon as possible. All applications have been submitted to Lottery in full compliance with the State's instructions."

The Commercial Observer » Source: Flake, Jay-Z Out of AEG

Source: Flake, Jay-Z Out of AEG