Peter Cappuccilli Jr.
 / file photo
ALBANY -- The State Attorney General’s Office announced Tuesday that it is launching an investigation into what it calls “patronage, cronyism and waste of taxpayer money at the New York State Fair.”
The AG’s Office says in a news release that it has sent requests for documents to several state agencies as part of a civil investigation into mismanagement at the Fair. The office also says it is conducting a criminal investigation of former State Fair director Peter Cappuccilli Jr. following a report and referral by State Inspector General Joseph Fisch earlier this month.
“The State Fair is a celebration of our shared heritage and culture that is critical to the Upstate economy and enjoyed by people across the State. The Fair is a source of pride for all New Yorkers and we must protect it,” said Attorney General Cuomo in a statement to the media. “Our actions are aimed at ending systemic problems that have created a culture of patronage and cronyism at the expense of taxpayers.”
Cuomo says there have been allegations that the State Fair has become a “patronage playground for friends, relatives and cronies of the Fair’s directors and managers.” Cuomo says his office’s investigation will “assess the integrity of ticketing, contracting, hiring, and other management and financial practices involving the Fair.”
In early August, Fisch issued a report alleging former Cappuccilli mismanaged Fair funds, including the squandering of approximately $860,000 in state funds, of which nearly $78,000 were for Cappuccilli’s personal use.
According to the AG’s Office, these allegations include using state funds for lavish parties, holiday cards, and his daughter’s wedding, as well as giving hundreds of free tickets given to elected officials, members of the State Police, and other individuals.
Fisch’s report also alleged more than $829,000 in payroll hires of friends and relatives, and the falsification and removal of official records to cover up misconduct. The complete report is available by clicking here.
When reach by phone Tuesday for comment, Cappuccilli told CNY Central that he would "talk at the appropriate time."
According to the Inspector General’s report, in 2004 Clear Channel radio was forced to move a concert from the Fairgrounds because it conflicted with the wedding of Cappuccilli’s daughter. Clear Channel general manager Joel Delmonico responded to the report by saying that he had not yet seen the subpoena, and it is “not anything that would reflect on Clear Channel” because “it has nothing to do with special treatment on our part.”
Progressive Expert Consulting, a firm which is alleged to have provided internet services to the Fair in violation of competitive bidding laws, said that the only person who can talk about the report has been out of the office for the past week and is not currently available.
The Inspector General's report also alleged that Catering With A Flair benefited from a special relationship with Cappuccilli. The company has offices inside the Empire Room facility on the fairgrounds. The receptionist told CNY Central's Jim Kenyon that both owners were not available for comment.
State Agriculture Commissioner Patrick Hooker, whose department oversees the Fair, issued a statement Tuesday saying “Since we entered these offices in 2007, State Fair Director Dan O’Hara and I have taken numerous actions to eliminate the cronyism and waste at the State Fair. We believe our decisions have helped improve both transparency and accountability at the State Fair and are proud of the changes implemented thus far. We plan to fully cooperate with the Attorney General as he takes a deeper look into the State Fair operation and will provide any additional information he requests.”
The New York State Fair is one of the largest and longest running fairs in the country. First held in Syracuse in 1841, the Fair is housed on
365 acres of state-owned property commonly known as the Fairgrounds. The complex includes 20 major exhibit buildings and more than 100 other structures. The fair runs for 12 days in August and September, draws nearly one million visitors, and has annual revenues exceeding $16 million.
In the interest of full disclosure, Cappuccilli was hired as as an independent contractor for Barrington Broadcasting in Syracuse, which owns WSTM and WSTQ and operates WTVH. His capacity involves sales and marketing consultation and is in no way connected to the news department or CNYcentral.com.