US Attorney’s Office serves Town of Hempstead with subpoena over Malibu Beach operator

Posted: Updated:

The U.S. Attorney’s Office is seeking to investigate the Town of Hempstead's contract with the operator of the popular Malibu Beach park, according to a memo obtained by News 12.

The Town of Hempstead was served with a subpoena to provide records on town contractor Butch Yamali.

The subpoena comes as Town Supervisor Laura Gillen accuses the Parks Commissioner, Daniel Lino, and other officials of negotiating a "backroom deal" with Butch Yamali, the CEO of Malibu operator Dover Group. She says Dover owes the town more than $500,000 in back rent as a result.

Town records confirm that Dover Gourmet Corp. hasn't paid rent on the property for nearly a year after signing a 5-year contract extension with Hempstead's comptroller and parks commissioner.

Gillen sent a memo to town officials asking them to fully comply with the subpoena.

Gillen says Dover was given a contract extension at Malibu without approval from the town board.

“This ‘backroom deal’ that was negotiated by the comptroller and by the parks commissioner was done without any involvement from my office,” she says.

Yamali responded in a statement to News 12 saying, "After all the documents are reviewed, the truth of our position will be verified.”

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

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