We couldn't make sense of some of the initial facts on the Eliot Spitzer scandal that broke this afternoon. Why was the FBI investigating a common, albeit high priced, prostitution service? Because it crossed state lines? Give us a break. And why was the FBI's Public Corruption department involved? It was juicy gossip of course, but it just didn't make sense at first blush, and the facts were leaking out selectively with heavy detail on what Spitzer did and said, with names and dates and room numbers, but precious little else.
Was there a general investigation going on in Washington DC of public officials? Was the FBI investigating a terrorist link somehow? The news made it sound as though Spitzer stumbled into an ongoing investigation. Ok, but why was the FBI directly involved? Sleeper cells of hookers?
It didn't make sense... until we read this story from ABC News. This story says that Spitzer did not stumble into an ongoing Federal investigation of a prostitution ring. Rather, the Feds were investigating Spitzer and his personal financial transactions at his bank, with no evidence of any crime, other than suspicion of some transactions as reported to the IRS by his bank.
They followed his personal financial transactions at the bank for months until they tumbled to the prostitution ring. They were looking for evidence of bribery. This was no general investigation that happened to nab a governor who was in the wrong place at the wrong time. It appears that the FBI, under the office of the Attorney General was following Spitzer's personal finances, looking for some evidence of wrongdoing. And they definitely found it. What Spitzer did was wrong, especially because it was not all that long ago that he was indicting and sending people to jail for breaking similar laws, and for involvement with organized crime.
Now perhaps we'll see more, much more detail, about this story in coming days. We're not defending anyone here, not at all. And we're sure most citizens of the United States of Amnesia won't care about any of the legal details, but instead will rejoice that another celebrity has shown their sexual missteps. We are not personal fans of Governor Spitzer. We think he fell far short in the investigation and settlements he made with the Wall Street banks as NY Attorney General.
But in the rush to judgement, we'd like to see a full disclosure of all the facts, including the details of how the investigation started, and who started it. We were old enough to read the news during the Nixon administration, and remember well his 'enemies list' and his other abuses of office. We would hate to see that sort of thing coming back into the Justice Department. Its a step in a very, very wrong direction for our republic.
It Wasn't the Sex; Suspicious Dollar Transfers Led to Spitzer
By BRIAN ROSS
ABC News
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.
It 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 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.
Structuring involves creating a series of financial movements designed to obscure the true purpose of the payments....
March 10, 2008 It Wasn't the Sex; Suspicious $$ Transfers Led to Spitzer
Is it outlandish to think that some group with a grudge against Spitzer might have some influence with the Administration and the Justice Department?
Are Bush's Big Bankers Fixing To BBQ Eliot Spitzer?
Carpetbagger 'Rangers' Could Be Gunning for Empire State Lawman.
Austin, TX
August 8, 2003 - As the East Coast bankers and financiers who dominate President Bush's 2004 elite fundraising team jet toward Crawford, some probably would rather chuck New York Attorney General Eliot Spitzer on the coals than the cattle that these Pioneers and Rangers will be served first.
Why would Big-Apple bankers travel 1,700 miles to nosh barbecue under a hot Texas sun? asked Texans for Public Justice Director Craig McDonald. Are they recruiting help for their showdown with New York's top cop? Are the New York bankers who dominate Bush's Pioneer and Ranger team paying tribute in hopes the Administration will help take Spitzer off the beat?
Hounded by Spitzer, top investment bankers--including new Bush Ranger Stanley O'Neal of Merrill Lynch and new Pioneer James Cayne of Bear Stearns--hosted Bush's most lucrative fundraiser in New York in June. Then 18 financiers made their industry Bush's No. 1 financial supporter last month when Bush disclosed the first 68 elite fundraisers of his reelection campaign. A Texans for Public Justice analysis reveals that the finance industry accounts for one-third of Bush's 32 all-new Pioneers and
Rangers who were not part of this elite team in 2000....
Are Bush's Big Bankers out to BBQ Eliot Spitzer?
