Investigators say Peter Cappuccilli used public money to prepare for daughters' wedding receptions. (Read the 147-page report)
Syracuse, NY - After investigating management of the New York State Fair for a year, the state inspector general is preparing to refer to prosecutors evidence against former Director Peter Cappuccilli, sources with knowledge of the probe say.
When Cappuccilli was the fair director, two of his daughters’ wedding receptions were held at the fairgrounds.
The fair spent thousands of dollars improving the reception sites in the weeks leading up to the Cappuccilli weddings, Inspector General Joseph Fisch’s investigators concluded.
The IG’s staff concluded that Cappuccilli did not compensate the state for the improvements or labor by state workers, estimated to be worth tens of thousands of dollars, according to one source familiar with the probe who spoke on the condition of anonymity.
Fisch’s office plans to provide the state attorney general’s office with information about Cappuccilli to review and determine if prosecution is warranted, two sources said.
The IG’s office also has notified state Agriculture Commissioner Patrick Hooker, whose department runs the fair, that it plans to criticize top Department of Agriculture & Markets officials for awarding a $700,000 no-bid contract to Live Nation Worldwide to produce the fair’s 2008 concerts, according to a source.
Investigators concluded there was no criminal wrongdoing in connection with the Live Nation deal, two sources said.
The IG’s office also alerted Hooker it will criticize Ag & Markets for not seeking competitive bids when it hired a boxing promoter to present matches during the 2009 fair, according to one source. The boxing event was promoted by Classic Entertainment & Sports of Providence, R.I. It was paid about $100,000.
Fisch is expected to issue a report before the fair opens Aug. 26. Fisch’s investigation has taken at least 14 months. The 12-day fair draws more than 900,000 people to the fairgrounds in Geddes.
The fair has been embroiled in conflict since then-Gov. Eliot Spitzer appointed Dan O’Hara as fair director in 2007. O’Hara began making widespread changes, including the firing of many long-time fair employees.
The IG’s staff concluded that O’Hara did not break any laws.
Fisch, a former state Supreme Court judge from the Bronx who was appointed inspector general in 2008 by Gov. David Paterson, is responsible for investigating corruption and mismanagement in state offices run by gubernatorial appointees. The inspector general’s office cannot bring criminal charges itself. It typically refers cases to county, state or federal prosecutors to review.
Those officials are not required to prosecute cases referred to them by the IG.
Fisch’s office declined to comment Monday.
Hooker said he was questioned once several months ago by an IG investigator. Several weeks ago he was briefed about the findings. He declined to comment on what he was told.
“I feel pretty darn good about how we’ve run the fair,” Hooker said. “We’ve tried hard to be honest and open and not waste taxpayers’ money.”
The Post-Standard reported in August 2009 that investigators were questioning fair workers about the Cappuccilli weddings.
Marnie Cappuccilli had her wedding reception in November 2002 in the Martha Eddy Room of the fair’s Art & Home Center.
Weeks before the wedding, the fair bought chandeliers and sconces worth nearly $4,400 to install in that building, according to fair records. Fair workers also bought hundreds of dollars of supplies to paint and repair the dance floor.
Molly Cappuccilli had an outdoor wedding reception in June 2004 in the mini state park at the fairgrounds.
In the weeks before that event, fair workers spent hours sandblasting and painting the man-made pond there, painting a picket fence, and building ramps for guests to walk upon, according to a source familiar with the IG’s probe.
In prior years, the pond maintenance was done in August by state Department of Parks & Recreation workers, the source said.
The evidence Fisch’s office gathered against Cappuccilli included subpoenaed photos from the photographer hired for the two weddings, the source said.
“I will respond at the appropriate time,” Cappuccilli said Monday. “I want to talk, respond and explain and defend my reputation and character, but I have been advised and assured by counsel that we will have that opportunity at an appropriate time. I ask that everyone reserve judgment until that time.”
Cappuccilli paid the fair’s exclusive caterer $11,000 for Marnie Cappuccilli’s wedding reception, The Post-Standard has reported. The Cappuccilli payment was higher than what was paid by all but one of more than 670 customers who rented the Art & Home Center between July 2002 and May 2004 for weddings, reunions, dinners and other events, the fair’s records show. New York received 13 percent of the fees customers paid to the caterer for events in that building.
The state fair was unable to locate records of any payments from Cappuccilli for Molly Cappuccilli’s reception, The Post-Standard reported in November.
In taking on Cappuccilli, the IG is taking on a family that has been a powerful player for decades in the Republican party in Onondaga County.
Cappuccilli and his father served as vice chairman of the Onondaga County Republican Committee.
Cappuccilli was the Onondaga and Madison counties coordinator of George Pataki’s first campaign for governor, in 1994. He was a campaign manager and special assistant for former Rep. Gary Lee, R-Ithaca.
Pataki appointed Cappuccilli as deputy fair director in 1995 and promoted him to director the following year. In Central New York, the fair director’s position is one of the state’s plum patronage jobs.
After 10 years running the fair, Cappuccilli resigned from the $125,000 per year job in 2005 to work at the Gilberti, Stinziano, Heintz & Smith law firm.
In 2008, Cappuccilli announced he would run for the 25th U.S. House District seat. But he bowed out a month later, citing health concerns, after being rushed to a West Palm Beach hospital.
His daughter, Molly, worked as an assistant district attorney for the Onondaga County District Attorney’s office until 2006. Then-Gov. George Pataki appointed her to a $72,000 per year job as his Central New York regional representative in his final 10 months as governor.
Attorney General. Report on Investigation of NYS Fair
Contact Mike McAndrew at mmcandrew@syracuse.com or 470-3016.