Sources: Spitzer Resignation Expected Wednesday

Governor Negotiating To Cut Deal With Federal Prosecutors

Reporting
Marcia Kramer

NEW YORK (CBS) ― Gov. Eliot Spitzer is set to resign Wednesday, sources tell CBS 2 HD political reporter Marcia Kramer, but insiders say he's going to use the resignation as a bargaining chip to cut a deal with federal prosecutors and he won't step down until that happens. The talks have been going on since Tuesday morning.

The governor's fate rests in the hands of two people: U.S. Attorney Michael Garcia and Michele Hirshman, the head of his legal defense team. The deal they cut will determine Spitzer's future.

Criminal law experts say Spitzer will definitely have to resign the governorship and that what's involved in the deal is key.

So what's the best that could happen to him?

"No charges, absolute resignation, and contrition. I think the worst that could happen is a felony plea on one of a number of charges that they could lodge against him," said noted criminal attorney Ronald Fischetti, who has often had to negotiate with feds on behalf of clients.

Still, Fischetti said Spitzer stands no hope of ever regaining political respect again.

"I think his career politically is at an end," he said.

The very real problem for Spitzer, as he well knows having been a prosector and the former Attorney General is that he could be charged with a number of things that carry jail time: tax evasion, money laundering, bringing a prostitute across state lines from New York to Washington.

He also has another problem in the negotiations with Garcia, who could be feeling pressure to throw the book at him.

"It's very important that [Garcia] expresses to the public that everyone is treated alike and if he doesn't charge someone who was the Attorney General and prosecuted crimes, he will be subject to a lot of public criticism that he let [Spitzer] go because he was the governor," said Fischetti.

And as the negotiations have dragged on, numerous groups have demanded that Spitzer step down, saying that his reform mission has been compromised.

"This problem really affects Gov. Spitzer at the core rationale for his governorship," said Baruch College Professor David Birdsell. "He came in promising integrity, a faultless governorship, one that's built on the firmest morale principles."

Sources say the resignation is expected sometime Wednesday morning, but it is unclear whether he will do it in writing or in a farewell speech. All of this, of course, is pending on the outcome of any deal he cuts.

What could hold up the deal is Spitzer's desire to avoid having to plead guilty to a felony.

"The main thing I would do is not plead for a felony because if he does that his law license is toast. He can't practice law anymore," said Fischetti.

So the goal for Hirshman is to see if she can get prosecutors to allow Spitzer to plead to a misdemeanor, something along the lines of solicitation, so he'd be able to practice law after he leaves Albany in exchange for his promise to resign.

The case is very difficult not only for Spitzer's family, but for the state of New York, which could soon find itself in the midst of an emergency transition.

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