Spitzer Resigns
by Matt Margolis on March 12th, 2008 at 09:33am
New York Governor Eliot Spitzer will be giving a statement at 11:30 a.m. ET. I’m hearing that the resignation will take effect on Monday. There is a lot of speculation about a possible deal with prosecutors in return for his resignation…
The hypocrisy of this whole situation is astounding. The sex aspect is nothing in the big picture:
As attorney general, he once broke up a call-girl ring and locked up 18 people on corruption, money-laundering and prostitution charges. He ruthlessly investigated the pay packages of Wall Street executives and was so familiar with shady financial maneuvers that he rose to become the top racketeering prosecutor in Manhattan.
But in the end, it appears that Spitzer may have been done in by the same behavior he built a career out of prosecuting.
In fact, it seems he was tripped up by some of the very financial accounting methods he used so successfully against multibillion-dollar Wall Street firms.
For one thing, the governor initially drew the attention of federal investigators because of cash payments to an account operated by a call-girl ring, according to a law enforcement official who spoke on condition of because of the sensitivity of the case.
Banks are required to file Suspicious Activity Reports to the government whenever they observe something they fear may be a crime.
In court papers, Client 9—identified by another law enforcement official as Spitzer—hurried to get more than $4,000 in cash to pay a call girl at a Washington hotel.
That kind of activity, repeated over time, is just the kind of thing that would set off alarm bells with a bank’s compliance officer, who is trained to be on the lookout for what is called structuring or “smurfing”—a pattern of transactions aimed at hiding the nature or purpose of certain money.
There is a lot more to this story, particularly since, as Rep. Peter King has noted, the link between prostitution rings and organized crime:
At least a dozen New York members either didn’t return calls or gave variations on “no comment” or “we’re monitoring the situation” when Capitol Briefing asked for a reaction. One of the few exceptions so far was the always media-friendly Rep. Peter King (R), who passed along his thoughts right before sitting down for a CNBC interview on the subject.
“I was absolutely shellshocked,” King said of the Spitzer news. “I’ve never heard any rumors, any whispers, anything at all.”
King added that he believed Spitzer should resign, since “prostitution rings are invariably linked to organized crime” and the governor’s behavior “leaves himself and the state susceptible to blackmail.”
The question remains what is the ultimate fate of Spitzer? Will he avoid prosecution and jail time?
UPDATE 11:45 am.: Spitzer resigns with his wife at his side.
UPDATE: Robert Stacy McCain hits the nail on the head:
In many ways, Spitzer’s resignation statement was classy, and notably lacked the kind of “accuse the accusers” tactic that Bill Clinton taught us to expect from Democrats caught red-handed.
However, Spitzer’s repeated use of the phrase “my private failings” was a dishonest evasion. What would Spitzer, as a former prosecutor, say about an accused dope dealer who spoke of his crime as a “private failing”?
In patronizing prostitutes, Spitzer was engaged in a criminal act. Crime is an offense against the citizenry, which is why the prosecution of Spitzer for federal money laundering charges — if such a prosecution is indeed pursued — will be called “United States vs. Spitzer.” And no crime can be more public than a crime committed by a powerful public official, such as the governor of New York.
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March 12th, 2008 at 9:38 am
He could resign or he could take a defiant stand…especially if the Feds won’t let him off with a wrist slap.
March 12th, 2008 at 9:45 am
He should resign. Then all you 19%-ers could get off on saying “Look… a Dem had to step down”.
I agree he should step down. I also think there are members of Congress in similar situations that should step down as well. But I won’t bring them up.
Spitzer needs to step down so the Lt Gov can start doing what needs to get done immediately.
On a side note…… let more fear-mongering begin. ANOTHER Muslim was elected to Congress!!! How are you people going to try and tear him down?
March 12th, 2008 at 10:13 am
Joe, the closest example of a member of congress in a similar situation would be Duke Cunningham, who did resign. As the facts show, this isn’t simple a case of a public official using a prostitute…
March 12th, 2008 at 10:14 am
Of course this fool should resign. Should have the first day this broke. But as the Joe says, the 19%-ers want this front and center so they don’t have to talk about the commander of CENTCOM quiting/being fired.
Every blog about Spitzer is one less blog about the Iraq Quagmire.
Mission Accomplished.
March 12th, 2008 at 10:22 am
Darva, you 11%-ers shouldn’t be lecturing about diversionary tactics…
March 12th, 2008 at 10:23 am
And don’t pretend that the Spitzer story isn’t big news.
March 12th, 2008 at 10:30 am
Matt,
The Spitzer story is big news. He should step down to allow the NY Governor’s office to get on with their job.
I also think others should step down. Yes, Cunningham did. I think Jefferson should. I think Renzi and Lewis should as well.
If this was a Repub, don’t tell me you wouldn’t be pushing this under the rug. You didn’t have any postings on the Renzi indictment. Back on Blogs for Bush, you guys had one thing on Mark Foley. All it said was something to the effect of…… We are not going to post about this because this is a House matter.
This is a state matter. Why are you so concerned with it? Especially when EVERYONE, regardless of party affiliation is in agreement that he should step down. It just makes you look like you are getting off on the story.
March 12th, 2008 at 10:33 am
This story is wall-to-wall on every news network and front page on every paper including the New York Times (no friend of the right) and we have charges here that its a diversion from the war in Iraq?
Hahahaha!
March 12th, 2008 at 10:49 am
Hey Matt:
Can you please, pretty please, show me your posts where you stated Vitter and Craig should resign on the spot?
March 12th, 2008 at 10:52 am
We talked plenty about the Foley case, and he resigned almost immediately, so we weren’t in a position to call for his resignation, nevertheless we supported it. In fact, the day he resigned, i said “good riddance to Rep. Foley.” We did keep a large amount of the blogging on the subject on our siser site, GOP Bloggers, because we were still Blogs for Bush. But, despite that, a simple search of the B4B archives yields many examples of references and discussion of the Foley scandal.
And you should know, it is not a state matter. Spitzer broke a federal law, and should he be charged with a crime, he will be charged in federal court. Regardless, this is news, and we will discuss it as we would any story. So don’t be lecturing what we should be concerned with. Are you going to criticize the national media for covering the story too?
March 12th, 2008 at 11:31 am
Spitzer is the gift that keeps on giving. First he hurt Hillary Clinton with his support for issuing drivers licenses to illegal aliens which the Clinton campaign blames for her devastating 3rd place in Iowa after she muffed a question on it. Now not only is the Spitzer story on every network an newspaper front page but everyone from news reporters to late night entertainers are using the Spitzer dalliances to drag up memories of Bill Clinton and Monica Lewinsky, right when Hillary is fighting for her political life. Talk about the perfect storm.
March 12th, 2008 at 11:37 am
OK - I’ll bite - what are 19% and 11% ers?
March 12th, 2008 at 12:01 pm
Joe-
Trust me I’ve tried to get Mark to admit to the hypocracy that no conservative on this site has called for Vitter to resign. It’s a little game they like to play. You say Vitter they hear Craig. You say Vitter again they hear Folley. Apparently sex scandals only come in the homosexual variety for the Republican Party. To paraphase, “The only way you’re out as a Republican is if you’re caught in bed with a dead girl or a live boy. ” (Ed. Note: and we try, again and again, to get you liberals to stay on topic…whatever the case of Vitter and Craig, this case is about Spitzer).
March 12th, 2008 at 12:13 pm
Actually I’m glad to see Spitzer gone because he was a conservative Democrat which IMHO is about as useful as a third testicle. The silver lining to this is he’s being replaced by Lieutenant Governor, David Paterson. For those who don’t know him, he’s record is one of a true liberal. Not only is he a liberal he’s also well liked on both sides of the isle here in New York. So while the Cons celebrate the destruction of Spitzer they don’t realize they just gave us liberal progressive governor. Thanks guys!!! :-)
March 12th, 2008 at 12:24 pm
Matt, just count you blessings. Spitzer is not a Reupublican. And he has already resigned.
March 12th, 2008 at 12:42 pm
NiP,
ROFL - Spitzer is a conservative? ROFLMAO!!!! Geesh, you lefties are some of the biggest dolts and are amazingly dishonest into the bargain. Spitzer is liberal as the day is long…
Endorsed by NARAL:
http://www.medicalnewstoday.com/articles/37616.php
Spitzer advocates gay marriage:
http://www.365gay.com/Newscon06/03/032206spitzer.htm
Spitzer supports race-based college admissions:
http://query.nytimes.com/gst/fullpage.html?res=9A03E2D61230F932A15752C0A9659C8B63
Seems pretty liberal to me…
March 12th, 2008 at 12:44 pm
Sunny,
And yet Frank hasn’t resigned…and Gerry Studds retired after being repeatedly re-elected following the revelation he had sex with an underage House page…
It is you Democrats who hold on to your corrupt members - you only threw Spitzer under the bus to avoid an impeachment trial.
March 12th, 2008 at 12:58 pm
Could someone please explain to me why any prosecutor on earth would let this weasel plea out with a resignation that’s inevitable anyway?
March 12th, 2008 at 1:17 pm
I understand about prosecutors wanting to go after the guys running the prostitution ring, but what’s a bigger fish than a sitting governor of America’s second most populous state committing prison-worthy offenses?!
It seems the mother of all no-brainers that prosecutors should nail the governor to the wall, and not give him any kind of deal whatsoever.
March 12th, 2008 at 1:44 pm
Mark-
LOL!!!!
If you thought that made Spitzer a raving “liberal” then you’ll absolutely explode in the coming months when David Paterson settles in.
Frankly I’ll enjoy watching it.
March 12th, 2008 at 1:49 pm
Expediency is my guess. The people of New York needed the change so their state government could get back to business. Now they can. Also, a long, drawn-out trial with no guarantee of a conviction (OJ Simpson got off, for example) would cost millions. Next, we do not know what the deal was yet. Does he get to stay out of jail? Does he have to plead to a charge? A felony charge which will cost him is license to practice law? In order for him to resign without a fight he had to be offered something of value but he also had to probably agree to more than just a resignation. Time will tell. Pleas are negotiated all the time - its called plea bargaining. He also cannot negotiate away any civil suits that could follow and given that he is extremely wealthy and apparently diddled with hookers for 6 years, expect them to come out of the woodwork now to get their slice of the Spitzer money pie. I’m glad he’s gone but I don’t envy him for what’s likely ahead for him.
March 12th, 2008 at 2:11 pm
I told you Spitzer would resign.
Funny how Spitzer’s resignation make Vitter and Craig stand out in the spotlight.
On behalf of democrats everywhere, thanks Vitter and Craig.
March 12th, 2008 at 2:29 pm
I’m not a big Letterman fan, but “the Luv Gov”? Ya gotta luv it — LOL.
And anyone who didn’t catch Rush’s new song parody “Love Client Number 9″ (sung to the tune of “Love Potion Number 9″) missed one of his best ever. What a fun diversion from the primaries. And what a fitting end for one of the most egotistical, power-hungry scumbags on the planet.
March 12th, 2008 at 3:48 pm
NeoClown, Funny how there is no press coverage of Vitter and Craig, as much as you would like for there to be.
Michael, what civil charges could be brought against Spitzer and by whom. I think the only one who has a potential case is his wife.
March 12th, 2008 at 5:13 pm
“I told you Spitzer would resign.
Funny how Spitzer’s resignation make Vitter and Craig stand out in the spotlight.
On behalf of democrats everywhere, thanks Vitter and Craig.”
No, it just makes me wonder what the rest of the corrupt Democrats are waiting for…….
March 12th, 2008 at 7:41 pm
There are plenty of potentials including the hookers he used (I’m sure they can trump up lawsuits claiming psychological damage, drug addiction, etc. that he caused or furthered). Next would be some of the people he relentlessly prosecuted and ended up with ruined lives while he was doing the same thing they were charged for. I think his wife and their daughters will take some decent change from him if she divorces him and sues him for damages (pain and suffering). Hell if a woman can sue the casinos for letting her gamble, you can be there are some creative lawyers out there that will dig up clients to go after Spitzer financially. And he has a list of enemies a mile long. Those are the ones I can think of off the top of my head.
March 12th, 2008 at 10:17 pm
It could have happened this way.
Republicans run an illegal wiretap on all of Spitzer’s phones and discover he sees call girls.
The very politicized Justice Department peaks into his bank accounts to see how he pays for the service.
They then call a Republican operative at Spitzer’s bank and tells them to file a suspicious activity report with the IRS so they can get the ball rolling to get legal wiretaps to bring him down.
We need FISA oversight to prevent illegal wiretaps.
Illegal wiretaps were in place before 9/11, so it is not about the terrorists. It’s for the political gain.
March 13th, 2008 at 12:09 am
Christian -
It could have happened THIS way. After I won the 250 million dollar mega-millions lottery, I bought an island in the Florida Keys. Thats where I would have all my wild parties with Brazilian super models. I also had a helicopter with floats built so I could go fishing on any lake whenever I felt like it. I had it built really nice inside, just in case one of those super models was into fishing.
What was really funny was that I won the Nobel Prizes in physics, medicine, and literature this year. So that was an extra three million bucks right there. A great year.
Yep. It could have happened that way.
March 13th, 2008 at 12:09 am
NiP,
It certainly didn’t make him a conservative - though I guess Spitzer’s heresy on school choice is what put him in to the “conservative” catagory for you…once again, a lefty who can’t tolerate dissent from the party line.
March 13th, 2008 at 12:10 am
Kahn,
You beat me to it - I was going to suggest that it could have happened that space aliens on the grassy knoll convinced Rove 10 years ago that what he needed to do was entrap Spitzer with a Fembot…
March 13th, 2008 at 6:26 pm
Deleted - off topic.
March 16th, 2008 at 12:06 am
Deleted - off topic.