WPIX-TV reports that federal prosecutors are investigating New York Gov. David Paterson's "awarding of a lucrative contract to a politically connected group to run a gaming center at Aqueduct Raceway."
"Capitol insiders say the deal was politically motivated."
However, Paterson "appears to have dodged the bullet of rumors and innuendo that had been circulating over a purported 'bombshell' story being prepared by the New York Times."
The Times is now expected to run its story on Paterson tomorrow. In a note yesterday, the newspaper said little about the rumors.