Town of Hempstead Supervisor Laura Gillen leveled new allegations Tuesday against the vendor who runs Hempstead Town's Malibu Beach Park.

Gillen announced that a spinoff of the company now being investigated by the U.S. attorney's office for its work at the park has also been operating a private catering hall at the Sands at Lido Beach without a legal town contract.

“The only paper evidence that we could find in our clerk's office of this arraignment is a letter from February 2011 from the Parks Department acknowledging that the vendor would be allowed to operate for 30 months and would pay the town 10% of gross sales,” says Gillen. “To be absolutely clear, it is illegal under New York state law to authorize a deal such as this one without a properly executed contract and without a public vote.”

Gillen says her office has ordered the Dover Group to immediately stop booking any new events and to turn over a list of events that are already under contract. She also says her office will be handing over anything related to the Sands at Lido Beach to the U.S. attorney's office and the FBI.

News 12 has reported that, according to town documents, Dover Gourmet Corp. hasn't paid rent at the Malibu Beach Club for nearly a year after signing a five-year contract extension with Hempstead's comptroller and parks commissioner.

Butch Yamali, the chief executive of Dover, says he has not paid because the town owes him millions of dollars for capital improvements he made at the park.

Brian Finnegan, a spokesperson for the Dover Group, issued a statement to News 12:

“Dover is under contract with the Town to operate the Sands at Lido Beach. An RFP process was completed, and a contract was negotiated and agreed upon.  Dover is current with all payments and the Town has been fully compensated pursuant to the terms of the contract. The Sands at Lido has proper insurance to operate. There has never been a lapse of insurance. Supervisor Gillen is again incorrect. The Supervisor would be well served to review Town records before attacking a well-respected vendor who has provided four decades of quality services to Hempstead residents.”

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