Federal prosecutors are investigating New York Governor David Paterson (D), WPIX reports. The investigation is said to involve the awarding of a lucrative contract to political allies to run a gambling center at Aqueduct Raceway.

The embattled Governor who 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, is now part of a probe by the Eastern District U.S. Attorney’s office in Brooklyn.

Two reliable sources confirm the investigation is “very fresh,” but could not say precisely what it is prosecutors are looking at other than questions about public integrity.

Paterson has been under fire by members of his own staff and legislative leaders for awarding the contract to Aqueduct Entertainment Group, a group that includes former Congressman Rev Floyd Flake, whose political support the Governor had been aggressively seeking.

Paterson, who has previously admitted to having used cocaine and having extramarital affairs, was already facing an uphill battle for re-election. This news isn’t likely to help his chances.

But really, is anyone surprised by corruption in the New York State Executive Mansion?