Thread: Sources: Spitzer Resignation Expected

Sources: Spitzer Resignation Expected

Lt. Gov. David Paterson Could Be Sworn In Within 48 Hours

Spitzer: 'I Have Violated My Obligations To My Family'

NEW YORK (CBS) ― Gov. Eliot Spitzer was not expected to continue as governor and may resign as soon as Monday night, sources told CBS 2 shortly after it was reported that he was linked to a prostitution ring.

Reliable sources initially told CBS 2 Political Reporter Marcia Kramer that Lt. Gov. David Paterson could be handed the job as early as Monday night, though other sources say the process could take up to 48 hours.

State Assemblyman James Tedisco (R-Schenectady) told CBS 2 that he spoke with Paterson earlier Monday evening and that the two discussed Paterson taking on a new role of leadership, leading Tedisco to believe that action was "forthcoming."

Tedisco stopped short of saying the move could happen Monday night.

The news sets off one of the largest scandals in modern New York state political history.

During a news conference Monday afternoon, Spitzer, 48, apologized to his family and the public, but did not go as far as to explain why. "I have acted in a way that violates my obligations to my family and violates my, or any, sense of right and wrong," he said in a brief statement. "I have disappointed and failed to live up to the standard I expected of myself.

"I must now dedicate some time to regain the trust of my family," he said alongside his wife, Silda Wall Spitzer, who was visibly upset as he spoke.

The couple has three daughters together.

The announcement not only shook up New York's political infrastructure, but political pundits who took to heart Spitzer's promise that he'd keep corruption and scandal out of Albany were stunned to learn of the news.

"Eliot Spitzer was supposed to be the guy that refurbished the Democratic party and cleaned up Albany, so this is much more shocking than it would be for any other incumbent," political consultant Norman Adler told CBS 2.

"I'm sure that more champagne is being filled in Albany today than in the last five years," he added.

Despite the expectations of a resignation, some experts say Spitzer should take the time to weigh his options before stepping down.

"This is one of the most intelligent, brightest elected officials in the region. You don't change governors of New York lightly, and I think it would be a mistake to act precipitously," political consultant Joseph Mercurio told CBS 2.

"I think first things first, he has to resolve his relationship with his wife. He has to look to his rabbi and make personal decisions first," Mercurio said. "It's really initially up to him before the rest of us react."

CBS News confirmed that Spitzer was caught on federal wiretap, and was identified as "Client 9."

Sources told CBS 2 that the ring Spitzer was involved in was the high-profile "Emporers Club VIP," which was accused last week of offering prostitutes to wealthy clients, topping out at $5,500 an hour. Four people were arrested in the ring that was linked to cities in the U.S. as well as in Europe.

CBS 2 has obtained a copy of the wiretap transcript which allegedly has Spitzer asking a man named "Lewis" about a prostitute.

Part of the transcript reads:

Lewis said that "Kristen" would go directly to room 871.
Client 9 asked Lewis to remind him what "Kristen" looked like and Lewis said that she was American, petite, very pretty brunette, 5 feet 5 inches, and 105 pounds.
Client 9 said that she should go straight to 871, and if for any reason it did not work out, she should call Lewis.

According to the transcript, "Client 9" made it apparent to the service's agent that it wasn't the first time he'd used the service before. "Yup, same as in the past, no question about it," he said when referring to payment arrangements.

Later, the agent told "Kristen" that the client would "ask you to do things that, like, you might not think were safe -- you know -- I mean that ... very basic things. ... 'Kristen' responded: 'I have a way of dealing with that. ... I'd be like, listen dude, you really want the sex?' ... You know what I mean.'"

An official told the Associated Press that the New York governor met last month with at least one woman in a Washington hotel. The law enforcement official spoke on condition of anonymity because of the ongoing investigation.

The Web site of the Emperors Club VIP displays photographs of the prostitutes' bodies, with their faces hidden, along with hourly rates depending on whether the prostitutes were rated with various numbers of diamonds, with seven diamonds being the highest. The highest-ranked prostitutes cost $5,500 an hour, prosecutors said.

The case is being handled by prosecutors in the Public Corruption unit of U.S. Attorney Michael Garcia's office. Garcia spokeswoman Yusill Scribner said the office had no comment.

Spitzer has built his political legacy on stamping out corruption, including several headline-making battles with Wall Street while serving as attorney general. He stormed into the governor's office in 2006 with a historic share of the vote, vowing to continue his no-nonsense approach to fixing one of the nation's worst governments.

Time magazine had named him "Crusader of the Year" when he was attorney general and the tabloids proclaimed him "Eliot Ness."

But his stint as governor has been marred by several problems, including an unpopular plan to grant driver's licenses to illegal immigrants and a plot by his aides to smear Spitzer's main Republican nemesis.

Spitzer had been expected to testify to the state Public Integrity Commission he had created to answer for his role in the scandal, in which his aides are accused of misusing state police to compile travel records to embarrass Senate Republican leader Joseph Bruno.

Spitzer had served two terms as attorney general where he pursued criminal and civil cases and cracked down on misconduct and conflicts of interests on Wall Street and in corporate America. He had previously been a prosecutor in the Manhattan District Attorney's Office, handling organized crime and white-collar crime cases.

His cases as state attorney general included a few criminal prosecutions of prostitution rings and into tourism involving prostitutes.

In 2004, he was part of an investigation of an escort service in New York City that resulted in the arrest of 18 people on charges of promoting prostitution and related charges.

Stay with WCBSTV.com and CBS 2 for more on this developing story.
(© 2008 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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This is one of the most intelligent, brightest elected officials in the region. You don't change governors of New York lightly, and I think it would be a mistake to act precipitously," political consultant Joseph Mercurio told CBS 2.

Who is he trying to kid?

Originally Posted by agrneydgrl

This is one of the most intelligent, brightest elected officials in the region. You don't change governors of New York lightly, and I think it would be a mistake to act precipitously," political consultant Joseph Mercurio told CBS 2.

Who is he trying to kid?

LOL He knows Spitzer is toast at this point. The question is to what degree he'll be burnt. His strategy is to avoid a felony conviction, because he would lose his law license. We've all tried to salvage burnt toast by scraping the top layer off, and we know it's not gonna work. So even if he gets off of felony charges, nobody will want anything to do with him.

It is just to bad something like this has not happened to McCain.

This is disgraceful and he needs to be removed from office immediately if he does not resign. The people of New York deserve better. It is sickening that every time a politician does something like this he drags his poor wife out on a stage to try to make him look like an innocent family man.

Lt. Gov. David Paterson Could Be Sworn In Within 48 Hours


So what do we know about Lt. Gove. Paterson? More of the same, or some enforcement finally.

Yes, this governor being involved with prostitution is wrong, but MORE wrong that NY is a huge sanctuary state for millions of illegals (aside from the license stunt he tried to pull)! Why aren't they up in arms about all of that??!!!

Dear sisterAnise, good question. Though this has to be a boost to our side as it shows the kind of man who would opnely grant illegal aliens the benefits that are for citizens (driving is a privelage, not a right).

I feel terrible for his wife, I only hope she takes him to the cleaners, plus and then walks out the door. He will be the way of Nifong, and just as quickly.

It Wasn't the Sex; Suspicious $$ Transfers Led to Spitzer
Officials Say Spitzer Is 'Client 9' in a Federal Complaint Against the Prostitution Ring

By BRIAN ROSS
March 10, 2008

The federal investigation of a New York prostitution ring was triggered by Gov. Eliot Spitzer's suspicious money transfers, initially leading agents to believe Spitzer was hiding bribes, according to federal officials.

Photos
Political Sex Scandals ReduxIt was only months later that the IRS and the FBI determined that Spitzer wasn't hiding bribes but payments to a company called QAT, what prosecutors say is a prostitution operation operating under the name of the Emperors Club.

As recently as this past Valentine's Day, Feb. 13, Spitzer, who officials say is identified in a federal complaint as "Client 9," arranged for a prostitute "Kristen" to meet him in Washington, D.C.

The woman met Client 9 at the Mayflower Hotel, room 871, "for her tryst," according to the complaint. Client 9 also is alleged to have paid for the woman's train tickets, cab fare, mini bar and room service, travel time and hotel.


The suspicious financial activity was initially reported by a bank to the IRS which, under direction from the Justice Department, brought kin the FBI's Public Corruption Squad.

"We had no interest at all in the prostitution ring until the thing with Spitzer led us to learn about it," said one Justice Department official.

Spitzer, who made his name by bringing high-profile cases against many of New York's financial giants, is likely to be prosecuted under a relatively obscure statute called "structuring," according to a Justice Department official.

Video
Spitzer Investigation: Music's Dirty Little Secret Structuring involves creating a series of financial movements designed to obscure the true purpose of the payments.

Prosecutors reportedly have a series of e-mails and wiretapped phone conversations of Spitzer.

In a interview two years ago, Spitzer, then-attorney general, told ABC News he had some advice for people who break the law. "Never talk when you can nod, and never nod when you can wink, and never write an e-mail because it's death. You're giving prosecutors all the evidence we need," he said.

Click Here for the Investigative Homepage.

http://abcnews.go.com/Blotter/story?id=4424507

Probe Into Call Girl Ring Started at IRS
Investigation Into Call Girl Ring Began With IRS Probe; Not Clear Whether Spitzer Was Target

The Associated Press By LARRY NEUMEISTER Associated Press Writer
NEW YORK Mar 11, 2008 (AP)
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The federal investigation into a high-end prostitution ring linked to Gov. Eliot Spitzer apparently began last year as a financial probe by the Internal Revenue Service.

The investigation into the Emperors Club VIP gathered more than 5,000 telephone calls and text messages, and more than 6,000 e-mails, along with bank records, travel and hotel records and surveillance.

But it was unclear whether Spitzer was a target from the start or whether agents came across his name by accident while amassing evidence.

Conversations were recorded about someone identified as "Client 9," including that a prostitute identified as "Kristen" should take a train from New York to Washington for a tryst on the night of Feb. 13, according to an affidavit.

A law enforcement source in Washington who spoke on condition of anonymity told The Associated Press that "Client 9" was Spitzer and that he met with "Kristen" in a Washington hotel room just two hours before Valentine's Day.

Wiretaps enabled government agents to listen as the woman later told a booking agent for the ring that she had secured $4,300 in cash from her client and that she liked him. Authorities also had statements from a confidential source and an undercover officer.

The prostitution ring first came to light last week when four people with charged with running it.

It was not immediately clear whether Spitzer could face charges. Federal prosecutors have brought charges against several prostitution rings over the past two decades, but have generally not prosecuted customers.

The public-corruption unit of the U.S. attorney's office got involved after the IRS looked into a complaint of a potential violation of the Bank Secrecy Act, the government's main tool against money laundering.
Financial institutions are required to have anti-money laundering programs, which help the government catch terrorist financiers, drug lords and other criminals. Financial companies also must report suspicious financial transactions to the government.

Investigators say the Emperors Club, which is based in Brooklyn, made more than $1 million for its operators by selling the services of women whose bodies were displayed, their faces concealed, on a Web site.

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N.Y. Governor Linked to Prostitution RingPolitical Sex Scandals ReduxHate Crimes Tied to Immigration Debate?Related Topics
Eliot L Spitzer Internal Revenue Service
The prostitutes were advertised as costing from $1,000 to $5,500 an hour.Last Thursday, four people were arrested in the probe and charged with conspiracy to violate federal prostitution laws: Mark Brener, 62, and Cecil Suwal, 23, who live together in Cliffside Park, N.J.; Temeka Rachelle Lewis, 32, of Brooklyn; and Tanya Hollander, 36, of Rhinebeck, N.Y.
Brener and Suwal also were charged with conspiracy to launder more than $1 million in illicit proceeds. Lewis and Hollander were accused of arranging meetings between prostitutes and clients.

Assistant U.S. Attorney Dan Stein said he believed the arrests shut down the ring.

The business promised clients they could pay with a wire transfer that would show up on records as QAT Consulting to make it appear to be a business transaction.

"Client 9" insisted on paying in cash.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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