Ex-Gov. David Paterson sold out a business partner and scuttled efforts to expose corruption at the Port Authority so he could get a seat on the PA board for his late dad, powerhouse Democratic politician Basil Paterson, according to a suit filed today.
Brian Aryai, a former Treasury agent, claims in court papers that he and David Paterson formed a construction-industry compliance firm in 2012, and that their company, Icon Compliance Services, was in line to snag two contracts to monitor work on the Bayonne Bridge and security arrangements at five PA-run airports and the World Trade Center site.
But Paterson allegedly “conspired” with the PA behind Aryai’s back to get his aging and ailing dad named to its board, which Gov. Andrew Cuomo announced in May 2013, less than a year before the elder Paterson’s death.
“Paterson raised no concern or objection over his father’s nomination, seemingly having already made the decision to forego his legal and ethical obligations to Aryai and Icon, and in return guarantee his father’s re-entry into the political realm,” the Manhattan federal suit says.
“With Paterson’s father as a board commissioner, the Port Authority deliberately created a conflict of interest that provided it with the necessary justification to not award Icon the Bayonne Bridge or security audit projects.”
The suit also says the scheme was motivated by “elements within the Port Authority” concerned about the possible corruption Aryai was poised to uncover.
In 2012, construction giant Lend Lease agreed to pay more than $50 million in fines and restitution for inflating bills on projects including Citi Field and Grand Central Terminal following whistle-blower allegations by Aryai, who had briefly worked for the company.
Aryai, who says losing the PA contracts cost him millions, is seeking unspecified damages from Paterson and the PA on grounds including breach of contract, fraudulent concealment and civil conspiracy.
Paterson inherited the New York governorship in 2008 after then-Gov. Eliot Spitzer resigned in disgrace over a hooker scandal.
He served out the remainder of Spitzer’s term, but didn’t seek election after getting mired in a scandal of his own for accepting free Yankees tickets and lying about it afterward.
A spokesman for the legally blind ex-governor denied Aryai’s allegations, adding: “We’ll see him in court.”
“Brian Aryai knows full well that he will never win a lawsuit with such flimsy allegations,” spokesman Sean Darcy said.
“He is shaking the governor down for a settlement, and that’s simply not going to happen.”
The PA didn’t immediately respond to a request for comment.