Feds subpoena town to provide records on Malibu Beach vendor contract

Posted: Updated:
LIDO BEACH -

Allegations of a secret backroom deal in the Town of Hempstead have caught the attention of the feds.

According to a town memo obtained by News 12 Long Island, the U.S. Attorney's Office served the town with a subpoena Thursday to provide records on a town contractor's work at Malibu Beach Park and other town properties.

Hempstead Town Supervisor Laura Gillen sent the memo to the town attorney, comptroller, parks commissioner and other town officials asking them to fully comply with the subpoena for documents related to town contractor Butch Yamali, who is the CEO of Malibu operator Dover Gourmet Corporation.

Gillen is accusing Parks Commissioner Daniel Lino and other officials of negotiating a "backroom deal" with the operator of Malibu Beach Park. She says Dover owes the town more than $500,000 in back rent as a result.

Gillen says the contract should be nullified now. Yamali says his business has acted legally and in accordance with its town vendor contract. He is accusing Gillen of playing politics.

In the memo, Gillen wrote in part, "Any attempts to in any way hinder this investigation, such as hiding, covering up, deleting or destroying records related to this investigation will also be immediately reported to the FBI agent in charge of this investigation, with whom my office is cooperating."

The federal subpoena comes one day after Gillen called for the town board to hire an outside independent counsel to investigate business dealings between unelected town officials and Dover Gourmet.

The U.S. Attorney's Office, Gillen and Yamali declined News 12's request for an interview about the subpoena.

READ MORE:
Hempstead town supervisor calls to authorize hiring team to investigate beach vendor contract
Town records: Malibu Beach Park operator owes more than half a million in rent
Supervisor Gillen, vendor quarrel over Malibu Beach contract extension

sorry to interrupt
your first 20 are free
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please enjoy 20 complimentary views of articles, photos, and videos during the next 30 days.
you have reached your 20 view limit
Access to News 12 is free for Optimum, Comcast®, Spectrum Networks® and Service ElectricSM customers.
Please login or create an account to continue enjoying News12.
Our sign-up page is undergoing maintenance and is not currently available. However, you will be given direct access to news12.com while we complete our upgrade.
When we are back up and running you will be prompted at that time to complete your sign in. Until then, enjoy the local news, weather, traffic and more that's "as local as local news gets."