Ex-state fair chief accused of cronyism, misspending

ALBANY - The former director of the state fair diverted thousands of dollars for personal use and the fair misspent nearly $1 million during his tenure, which included rampant nepotism and thousands of free concert tickets being handed out to employees and state troopers, New York's inspector general said.

In a report yesterday, Inspector General Joseph Fisch said the findings about Peter Cappuccilli Jr. are being forwarded to Attorney General Andrew Cuomo for possible criminal charges, including grand larceny and records tampering.

Cappuccilli, a former Republican Party official appointed fair director in 1995 by Gov. George Pataki, said in a statement he will respond "at the appropriate time." He wants to explain and defend his reputation and character, but has been assured by his lawyer they will have that opportunity, he said.

Cappuccilli, 59, a Syracuse real estate developer, was director of the state fair from 1995 until he stepped down in late 2005.

The investigation began in 2008 following an audit.

Investigators said misconduct by Cappuccilli, who had an annual salary of about $125,000, was mainly connected to his relationship with the owners of Catering with a Flair, a catering service on the fairgrounds run by longtime friends.

According to the report, the caterers were required to make $83,000 in improvements to banquet rooms and other leased space, but under Cappuccilli's direction in 2003 that was never enforced.

Instead, the state spent more than $6,500 for the improvements. For several years, the caterers put on holiday parties costing about $20,000 each but charged the state only about $2,400, submitting bills only for the gratuity.

They also catered wedding receptions in 2002 and 2004 for Cappuccilli's daughters at the fairgrounds; the latter cost more than $43,000, but the bride's father was charged only $20,000, the report said.

The report also said nepotism and cronyism were rampant under Cappuccilli's tenure, with his and other staff's friends and family being hired for more than $829,000.