Gov. Spitzer's office is apparently confirming that he is represented by the Manhattan law firm of Paul Weiss Rifkind Wharton & Garrison, and reports across the Internet are paying some considerable attention to an ABC story that says this investigation began as a probe of Spitzer's money transfers -- not a probe of a prostitution ring.
The criminal affidavit suggests that a call-girl involved with Emperor's Club who was known to NY law enforcement flipped late last year, kick starting a probe of the ring. One wiretap ran from January to early February, then was renewed on Feb. 11 -- just in time to catch Spitzer's communications on Feb. 12. But was it just luck?
The ABC story says banks reported suspicious financial transfers by Spitzer that appeared designed to avoid reporting requirements on cash transactions of more than $10,000, which investigators initially suspected may have involved bribery. Since Spitzer had apparently been involved with the prostitution ring prior to February, those transfers may have been designed to pay for multiple previous assignations -- which apparently could cost as much as $5000. So under that theory, what began as a corruption probe turned out to be a vice case.
If that report is true, it increases Spitzer's legal risks. ABC reports that charges of "structuring" are being contemplated -- essentially, arranging transactions to avoid the reporting rule when paying for an illegal act (prostitution). IRS Regs are here. That would be a money laundering charge, in addition to a Mann Act charge -- arranging for the transport of a prostitute across state lines. Allegedly, the wiretaps made it clear that he knew he was paying for a prostitute to travel from NY to DC.
Third, of course, possible public corruption angles: Were state resources used to pay for Spitzer's sex -- from hotel rooms to phone calls to security. We recall that it was OK for Giuliani to get security to go to LI when he was having an affair with Judi Nathan. But what if it's not an affair -- it's an illegal act?
Comments (3)
Maybe NOW Newsday will look into the reporting of it reporters who COVER SPITZER AND ALBANY. There former Albany Bureau Chief is SPIZTER spokesman and two of their reporters James T Madore and Melissa Mansfield arranged the famous LCA VOTE.
Newsday and the rest of the FOURTH ESTATE NEEDS TO COME CLEAN AND STOP REPORTERS WHO COVER GOV'T FROM JOINING GOV'T. HOW CAN THE PUBLIC TRUST ANYTHING THEY READ IN NEWSDAY OR ANY PAPER THE REPORTERS ARE TOO CLOSE TO THE PEOPLE THEY COVER. WAKE UP NEWSDAY AND THE REST OF THE FOURTH ESTATE.
Albany reporters are like all reporters---they have Legislators who are friends and enemies, and push the careers of legislators who leak to them. Balboni was the worst NEWSDAY leaker of the bunch.
its a shame that prostitution was'nt legalized years ago. It probably would have cut down on sex offenders not to mention if it was controlled on STD's. Alos it would be a boon to the coffers of the govt and states with the taxes it would generate