Darryl Greene, the Queens developer whose company is part of the winning Aqueduct racetrack "racino" bid, is not just a convicted criminal, he’s a tax deadbeat, The Post has learned.
Companies connected to Greene owe nearly $1 million in state taxes. He and his wife, Cathy, also owe $10,681 in personal income tax to the state.
Greene heads The Darman Group, a company that partnered with the Empowerment Development Corp., helmed by influential Queens pastor Rev. Floyd Flake, to join the winning Aqueduct Entertainment Group bid to bring video slot machines to the Queens racetrack.
State Senate President Malcolm Smith was once a partner in Darman, ending his formal association in 2000 when he was elected to the state Senate.
Darman Building Supply of Lynbrook, LI, owes $929,356 in state taxes, according to three liens filed last year. The liens are for outstanding sales tax that date to 2004.
According to state records, the company was incorporated in 1986 as Raeclek Messenger Service and changed its name to Darman Building Supply in 1988. Greene was listed as chairman of the board of Darman Building Supply in 1998, according to papers filed with the state Department of State. A relative, Mark David Greene, was chairman in 2000, according to the latest available filings.
Rochester Minority Business Development Center, a nonprofit founded in 1997 by Greene and his wife, owes the state $35,629 in withholding tax from 1997 and 1998.
Greene, a former lawyer, was disbarred after he pleaded guilty in 1999 to defrauding city agencies.
Greene did not return The Post’s calls seeking comment.
It’s not clear whether Greene’s criminal record or his tax liens will sink AEG’s winning bid. Among the conditions set by Assembly Speaker Sheldon Silver last week were that no investor could have a felony conviction "or any other crime or offense involving . . . misappropriation of funds, or tax evasion."
"AEG has agreed to comply with all of the state’s conditions, and that compliance will be reflected once a final memorandum of understanding is signed," said Morgan Hook, a spokesman for Gov. Paterson.
Hook would not elaborate.
Paterson selected AEG over other bidders and spent much of last week defending the choice, which some saw as reeking of political favoritism.
Sources told The Post that AEG was initially found not qualified for the job by the state Lottery Division and that the governor’s senior staff favored other companies.
Smith, who has close ties to Greene and Flake, was a supporter of the AEG bid. But "he had no role in bringing Darman Group into AEG," said his spokesman, Austin Shafran.
Reins of power
The web of partnership and influence surrounding a shady Queens charity and a shaky bid for a lucrative gambling contract at the Aqueduct “racino.”
AQUEDUCT ENTERTAINMENT GROUP
A consortium of companies, including The Darman Group and Empowerment Development Corp., with the winning bid to bring video slot machines to Aqueduct Racetrack.
STATE SEN. MALCOLM SMITH
* Temporary president of the Senate.
* Lobbied for AEG to win Aqueduct bid from Paterson.
* Worked as a congressional aide to Flake before running for senator.
* Former business partner with Greene.
* His wife, Michele, is a founding board member of New Direction LDC, the charity he set up with Meeks.
* Principal, Empowerment Development Corp.
* Pastor, Greater Allen AME Cathedral in Queens.
* Former congressman and mentor to Meeks and Smith.
* Rev. Edwin Reed, treasurer of Empowerment Ministries, Flake’s charity, is listed as the treasurer of New Direction Local Development Corp., the charity of Meeks and Smith.
* Principal, The Darman Group.
* Pleaded guilty in 1999 to defrauding city agencies; he and his companies owe $940,000 in taxes. Former business partner of Smith.
* Founder of Peninsula Preparatory Academy Charter School in Queens, for which The Darman Group was awarded the building contract. Both Smith and Meeks served on school’s board.
* Greene’s wife, Cathy, was founding board member of New Direction LDC.
* Selected AEG group Feb. 5 over four other bidders.
* Met with Flake three days later and discussed politics.
REP. GREGORY MEEKS
* Former protégé of Flake. Meeks succeeded Flake as representative for the 6th Congressional District in Queens in 1998.
* Partnered with Smith to raise funds for Hurricane Katrina families.
* Worked as a lawyer with Greene’s law firm, Greene & Flowers Associates.
* Member of Flake’s church.