Current director and state commissioner say they've already taken steps toward reform (video).
Syracuse, NY -- Former New York State Fair Director Peter Cappuccilli, Jr., diverted $78,000 in state funds for personal use, squandered $870,000 in state money on lavish parties, holiday cards and two daughters' weddings, and falsified or removed records, an investigation by state Inspector General Joseph Fisch has charged.
The inspector general also uncovered no-bid contract abuse, more than $829,000 in payroll hires of friends and relatives and $720,000 in free tickets to politicians, state police and others.
Fisch released a 147-page report today after a two-year investigation. (See the report below.)
The report said Cappuccilli "wielded unchecked control over the Fair from 1995 to 2005 and repeatedly abused his position for personal gain." Cappuccilli declined to be questioned by the Inspector General and said, through an attorney that, if subpoenaed, he would assert his Fifth Amendment privilege against self-incrimination, according to a news release from the Inspector General’s office.
The investigation also found that the State Fair and Department of Agriculture and Markets officials violated state laws with a no-bid contract with concert promoter Live Nation in 2008 and Rhode Island "Fight Night" promoter Classic Entertainment and Sports Inc. in 2009.
Specific allegations in the report include:
• Over more than a decade, $720,000 in free tickets were given to politicians, relatives of fair employees, state police and others. Former Marketing Director Joseph LaGuardia gave away more than $280,000 in alleged concert "reviewer" tickets that actually went to friends and family. Over eight years, state police received $200,000 in complimentary concert tickets. Over two years, fair employees were given over $240,000 worth in free tickets. Employees also received free parking passes and admission for their families.
• Cappucilli cost the state $73,000 for his daughters’ weddings in 2002 and 2004. The report said he misused employees’ time to drain and refurbish a pond, build staircases, plant flowers, hang decorative lights and install a fountain and he canceled or blocked adjacent rentals, including a $17,000 country music concert, losing the state a total $61,000 in revenue so the fairgrounds would be quiet for the wedding.
• Fair caterers gave Cappuccilli a break of $23,000 on a $43,000 wedding reception.
• More than 40 relatives of fair employees were hired between 1995 and 2006 in what LaGuardia called "a family venture."
Patrick Hooker, state commissioner of Agriculture and Markets, said he and current State Fair Director Dan O’Hara noticed irregularities when they took office and asked the inspector general’s office to investigate.
Hooker, who is at the state fairgrounds today, said the agency has taken steps to improve procedures regarding contract bidding and the distribution of tickets. The state has abolished the Industrial Exhibit Authority, an independent public authority that managed the employees and buildings, and moved operations to the Agriculture and Markets agency. They have also eliminated free tickets for employees and state police and stopped the practice of hosting lavish holiday parties, he said.
Hooker acknowledged problems with what he called “procurement missteps” in handling the Live Nation and Fight Night contracts, but said their decisions were not malicious or self-serving.
“We take the recommendations of the Inspector General very seriously and have already begun to implement new checks and balances to ensure that our procurement process is fair and transparent,” Hooker said in a prepared statement.
» Coverage from Tuesday's Post-Standard: Probe to fault public money for private weddings.