Jay-Z Under Federal Investigation

Jay-Z's relationship with the New York governor is being put under the microscope by the Federal government.

Governor Paterson recently selected Aqueduct Entertainment Group, which is affiliated with theNew York rapper, to run a multi-billion dollar racino at Aqueduct Racetrack, but the feds want a closer look at the secret selection process.

AEG initially ranked last amongst bidders for the contract, and Jay-Z, who was always interested in the project, was working with Vegas-based Wynn Resorts Limited. Wynn appeared to be in the front running for the contract, but eventually backed out citing the long review process and its murky rules as the reasons.

A source reportedly told New Post, "Paterson directly told Wynn he needed to have a minority partner, so he went and got Jay-Z. But when Wynn pulled out, Jay-Z was without a home. AEG went and grabbed up Jay-Z after his deal with Steve fell through."

The implication is that whichever company courted Jay-Zwould win favor with the governor, however AEG denies such, instead saying they chose Jay because of his deep connection to New York.

"Give Jay-Z's superstardom and his long and deep connection to New York, the partners thought he could bring a unique perspective to shaping a facility that would truly be an entertainment destination," explained AEG spokesman Jonathan Rosen.

"The partners were looking to bring in someone who could bring marketing and community advice to the team."

A spokesperson for the governor also discounted such claims stating, "There is absolutely no relationship between Governor Paterson's friendship with Jay-Z and the choice of AEG."

Source: New York Post