Spitzer Speaks (updated)

[ProSense]

Video: Spitzer Speaks

March 10, 2008, 3:18 pm

‘I Apologize to the Public’

By Sewell Chan

Following is a transcript of Gov. Eliot Spitzer’s brief statement to the public, delivered at his Midtown Manhattan office on Monday afternoon:

Over the past nine years, eight as attorney general and one as governor, I’ve tried to uphold a vision of progressive politics that would rebuild New York and create opportunity for all. We vowed to bring real change to New York and that will continue. Today, I want to briefly address a private matter. I have acted in a way that violated the obligations to my family and that violates my — or any — sense of right and wrong. I apologize first, and most importantly, to my family. I apologize to the public, whom I promised better. I do not believe that politics in the long run is about individuals. It is about ideas, the public good and doing what is best for the State of New York. But I have disappointed and failed to live up to the standard that I expect of myself. I must now dedicate some time to regain the trust of my family. I will not be taking questions. Thank you very much. I will report back to you in short order. Thank you very much.

More than 100 reporters, along with 30 television cameras and 20 still photographers, had awaited Mr. Spitzer’s announcement — originally scheduled for 2:15 p.m. — in a packed briefing room at the governor’s office at 633 Third Avenue. As the door opened, Mr. Spitzer had his arm around his wife, Silda Wall Spitzer; the two nodded and then strode forward together. Both had glassy, tear-filled eyes, but they did not cry.

The governor — addressing reports that he had been caught on a federal wiretap arranging to meet with a high-price prostitute at a Washington hotel last month — spoke for just 64 seconds, declining to take questions and remaining silent on his political future. As he prepared to leave, three reporters screamed out, “Are you resigning? Are you resigning?” Mr. Spitzer charged out of the room, slamming the door.

Public Corruption or Vice?

03.10.08 -- 3:50PM By David Kurtz

The NY Sun reported this morning before the NYT bombshell that the case is being handled by the Justice Department's public corruption section:

Prosecutors specializing in government corruption cases are leading the investigation into what authorities say was a prostitution service that charged up to $5,500 an hour — suggesting that the U.S. attorney's office in Manhattan may have evidence that a public official hired a prostitute. …

During a court hearing in the case, at which the four people were arraigned, it emerged that all three of the assistant U.S. attorneys assigned to the prosecution are part of the U.S. attorney's public corruption unit. One is the bureau's chief, Boyd Johnson III. The unit investigates wrongdoing by both elected and nonelected officials and bureaucrats at various levels of government. …

"When we first got the case, we were surprised that these were the assistants handling the case," said a defense attorney, David Gordon, who represents one of two women alleged to have booked engagements for prostitutes.

Edited to add:

No allies

Spitzer is very much a one-man show in Democratic politics. Hillary Clinton is probably relieved right now at how thin their connections are -- he was a lukewarm surrogate, and his

But this also means that few Democrats are rushing to his aide, and the Washington legal group Citizens for Responsibility and Ethics in Washington -- which spends much of its time tormenting Republicans -- seems to be taking the opportunity to prove its bipartisan probity:

Given the reports that New York Governor Eliot Spitzer was heard on a wiretap arranging for a prostitute to travel from New York to Washington to meet in his hotel room, it appears that he has violated the Mann Act. This federal law carries a penalty of up to 20 years imprisonment for knowingly persuading or inducing any individual to cross state lines for the purposes of prostitution. Governor Spitzer also appears to have violated District of Columbia law, making it unlawful for any person to engage in prostitution or to solicit for prostitution. This is punishable by up to 90 days in jail, or a fine of up to $500, or both, for the first offense.

[Yurovsky]

1. Link to press conference video...

wow ...

http://www.youtube.com/watch?v=t0oALRL7uyY

[woolldog]

2. I don't think he should resign.

This isn't a big deal and he should stay in office.

[redqueen]

4. Agree...

but like someone said downthread - there may be more. He may be on the receiving end of some pressure to just drop out now, before things get worse.

Fuckin politics.

[Spider Jerusalem]

12. There may already be some pressure from within the NY Dem Party for his resignation...

Washington Post quotes Joseph Lentol (D), State Assembly member from Brooklyn, as saying 'assuming all the allegations are true, it would be very hard for him to survive'. I have to say it's rather telling that Lentol felt comfortable going on the record with a statement like that at this point.

[Independent-Voter]

36. If you do something stupid enough to be blackmailed with it, well, tough shit

He should step down immediately and hope for the Nixon effect to kick in in a few years.

[anigbrowl]

10. I disagree: he should quit ASAP

His behavior reflects very poorly on the Democratic party.

It's not because he had sex with a pro. It's because he crossed state lines to do so, using a service that organizes international prostitution - the kind of operation he has taken action against as an attorney general. He was knowingly patronizing a high-priced prostitution business.

This is not like calling a number on the back page of Village Voice and engaging in a simple interpersonal transaction with some self-employed woman.

[woolldog]

16. $5,500 an hour prostitutes

are a lot different than those sex slavery rings where the women are being exploited.

[anigbrowl]

26. That's beside the point

It still reeks of corruption and brings the Dem party into disrepute. Republicans will legitimately say that Spitzer doesn't seem to care about enforcing the law when there's big bucks involved, say things like 'one law for the rich...' etc.

I don't think Soitzer is the scum of the earth because he paid for some hot sex. But it's stupid of him to go with a business that trades in that. And for all we know, this might be the VIP tip of a sleazy iceberg.

[WillYourVoteBCounted]

3. a little black mail possibly?

he got caught compromised. Likely this isnt' the first time.

Could explain why more wasn't done about Rove.

[WillYourVoteBCounted]

5. that wiretapping American Citizens sure is working out swell, eh?

agh. see its the telecom immunity thing, was there a valid reason to spy on Spitzer?

Why were they tapping his phone? Maybe this prostitute is part of a sting operation.

:shrug:

[Thepricebreaker]

6. It was an FBI wiretap - you know there are legal ways to do it..

[WillYourVoteBCounted]

14. well I think it is Bull shi** to bust someone over this

It bothers me that on other threads someone is trying to make this about
Obama.

I support Obama.

I support Spitzer, hes human. This is a bs victimless crime.

Maybe it shouldn't be illegal.

[Yurovsky]

15. Legality certainly makes it safer for the women involved...

the situation in Nevada seems a lot safer than what most working girls endure across this country.

[americanstranger]

18. They were tapping the service's phone, if I'm hearing right.

He got caught phoning in.

Sad to see it happen, but with a couple of qualifications.

1. He should step down and leave the job to Patterson, and I think he realizes that he's compromised to the point where nothing will get done in NY on his watch.

2. There would probably be a lot less schadenfreude whirling around this story if Spitzer had not hyped himself to be some uber-moral superhero.

It never ends well for those crusader types, does it?

- as

[Minnesota Raindog]

7. "Contemporary art?" "Concierge?" "Social introductions?"

I guess this is how high rollers like Spitzer get laid...

http://64.233.167.104/search?q=cache:uVfG8bKt2l8J:emperorsprivateclub.com/ContemporaryArt/Membership.html+877-286-5338&hl=en&ct=clnk&cd=2&gl=us

http://64.233.167.104/search?q=cache:GISaU8uRs-8J:emperors-spokesmodels.com/Welcome/Welcome.html+877-286-5338&hl=en&ct=clnk&cd=1&gl=us

http://64.233.167.104/search?q=cache:pVUcCTokckYJ:emperorsprivateclub.com/SocialIntroductions/Membership.html+877-286-5338&hl=en&ct=clnk&cd=3&gl=us

http://64.233.167.104/search?q=cache:zrGDT2dnel8J:emperorsconcierge.com/Home.html+877-286-5338&hl=en&ct=clnk&cd=4&gl=us

[Yurovsky]

13. I guess it would be wrong ...

to put in your actual income and just ask "what can I get for $50?"

Sorry, I'm not accustomed to rubbing elbows with the rich and famous (and naked).

[Scurrilous]

20. From thesmokinggun:

Online Hooker Ring Busted

http://www.thesmokinggun.com/archive/years/2008/0306082emperor1.html

[DrFunkenstein]

8. Where's Ken Starr When You Need Him

We haven't had a good public shaming trial in years.

[elixir]

9. I don't think he should resign either. In a strange way, I feel sorry for him and his family.

[scheming daemons]

11. I feel sorry for his family.... but why feel sorry for him?

[Yurovsky]

17. Agree 100% ...

while I don't think it should be a legal issue, I know from personal experience what this type of thing does to a family.

I may joke about it here and there (as with Sens. Craig & Vitter), but at the end of the day there are real people, real victims here (the families).

[redqueen]

19. Maybe because he's only human, and humans make mistakes?

Jesus.

[scheming daemons]

23. ...and humans suffer the consequences for their mistakes....

...

or at least, they should.

[redqueen]

27. True... but I sure don't put this on the same par as lying to start a war or anything like that.

It's bad, yes... but is it really that bad? Eh... not so much, IMO.

[apnu]

21. I fail to see what this has to do with GD-P?

Move it to GD where it belongs.

Sheesh.

[ProSense]

22. Here:

* He is a superdelegate who has pledged to support Hillary Clinton in her campaign for the Democratic presidential nomination.

[apnu]

25. Ok that's better. now back to mudslinging and knife fighting (nt)

[snooper2]

24. With his wife in hand....

:puke:

[ProSense]

28. Coincidence:

Mayflower Hotel also setting in Clinton-Lewinsky scandal


If Rezko is going to haunt Obama as Hillary predicts, this will certainly not help her.

[Tatiana]

29. This is so awful. I can't imagine what would have driven Spitz to do t his.

I feel sorry for his wife and family.

He knew better. He was a damn prosecutor. Seriously, was it THAT good?

[Independent-Voter]

37. At $5,500/hr, it damn well better be!

[ProSense]

30. Still Nothing From Hillary On Spitzer

Still Nothing From Hillary On Spitzer

By Greg Sargent - March 10, 2008, 5:02PM

He's a key supporter, and as Senator of his home state, Hillary will be expected to weigh in on Eliot Spitzer's travails.

But as of now, there's nothing from either her Senate office or her campaign.

[ProSense]

31. Schumer Issues Brief, Unsupportive Statement About Spitzer

Schumer Issues Brief, Unsupportive Statement About Spitzer

Chuck Schumer's office issued this statement from the Senator:

"I feel bad for him and his family but until he makes a more complete statement, I have nothing more to say."

[ProSense]

32. The damage

Mr. Spitzer Has Gone Too Far

By JOHN C. WHITEHEAD
April 22, 2005

Something has gone seriously awry when a state attorney general can go on television and charge one of America's best CEOs and most generous philanthropists with fraud before any charges have been brought, before the possible defendant has even had a chance to know what he personally is alleged to have done, and while the investigation is still under way.

In a recent nationally televised interview, New York Attorney General Eliot Spitzer issued serious allegations against former AIG CEO and Chairman Maurice "Hank" Greenberg. While it is the responsibility of the attorney general to prosecute cases in court, it is neither proper nor fair, and may be a violation of ethics, for a prosecutor to publicly air such charges under these circumstances. Mr. Spitzer's television appearances followed weeks of leaks from his office accusing Mr. Greenberg of wrongdoing. Those leaks and Mr. Spitzer's televised charges have damaged Mr. Greenberg's reputation.

Recent media reports have focused on the different treatment Warren Buffett and Hank Greenberg have received as the two parties to the same transaction. I wonder if that has anything to do with Mr. Greenberg's political opposition to the attorney general on the issue of tort reform? Or perhaps his public criticism of the attorney general's aggressive pursuit of New York corporate executives?

Many companies in the insurance industry -- including Mr. Buffett's -- have engaged to a much greater extent in the same business transactions for which Mr. Greenberg is being pursued by Mr. Spitzer and for which he was unceremoniously dismissed from the company he led and grew for 40 years. Singling Mr. Greenberg out does not seem either fair or proper.

<...>
Mr. Whitehead, former chairman of Goldman, Sachs, is chairman of the Lower Manhattan Development Corp.

more

[ProSense]

33. What Prompted Spitzer Investigation?

What Prompted Spitzer Investigation?

We've been trying to piece this together the answer to that question this afternoon, and ABC News reports an interesting piece of the puzzle:

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. …

The suspicious financial activity was initially reported by a bank to the IRS which, under direction from the Justice Department, brought in 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.

The ABC report goes on to say that Spitzer will be charged with structuring, according to its source.

If I'm remembering my white collar crime law correctly, structuring is basically trying to avoid triggering the federal reporting requirement for any cash transaction that exceeds $10,000. So a series of $9,000 payments to the same person in a short period of time would raise suspicions, for example.

Typically, structuring is a charge prosecutors put together after the fact, by which I mean they reconstruct a financial transaction or series of financial transactions after they have already begun their investigation and are able then to piece together the elements of a structuring charge.

But banks and other financial institutions (including casinos, I believe) also monitor themselves for signs of money-laundering activity. So it's certainly possible that a bank could have tipped off the feds, though my sense is that it takes a pretty clear pattern of conduct involving substantial amounts of money before a bank's compliance staff takes notice. Readers with expertise in the area can correct me if I'm wrong.

[ProSense]

34. Spitzer Scandal Opens an Ouch Moment for Clinton

Spitzer Scandal Opens an Ouch Moment for Clinton

Mon Mar 10, 5:21 PM ET

The Nation -- New York Governor Eliot Spitzer had to be dragged onboard the Hillary Clinton for President campaign.

Now, he's another headache for Clinton.

Spitzer, who earned a national reputation as a crime buster, was busy apologizing Monday after having been linked--via a federal investigation--to a prostitution ring. The governor reportedly reportedly paid $4,300 to spend the night before Valentine's Day with a young lady at Washington's swank Mayflower Hotel.

"I have acted in a way that violates my obligations to my family... my sense of right and wrong," admitted Spitzer, in a brief statement delivered at his Manhattan office. "I must now dedicate some time to regain the trust to my family."

Ouch.

Ouch for Spitzer.

Ouch for all New York Democrats, including a certain New York senator.

The first question is an ugly one: Will Spitzer, one of Clinton's highest profile backers and the man who was going to lead the New York delegation at this summer's Democratic National Convention, quit politics?

more

[ProSense]

35. The big question now is: When will Spitzer resign?

The big question now is: When will Spitzer resign?

By Tom Precious - News Albany Bureau
Updated: 03/11/08 10:18 AM

ALBANY -- It's the most-asked question this morning at the state Capitol: Will Gov. Eliot Spitzer resign from office today? A day after revelations of his involvement as a patron of a high-end prostitution ring, senior advisers, normally clued into every detail of Spitzer's policies, were in the dark this morning.

<...>

State officials say no specific plans have been made for Lt. Gov. David Paterson to take over from Spitzer as early as today, but his aides are thinking up what Paterson will say in a speech and how he will seek to unify the governor's office with the Legislature as the state rushes to a deadline to adopt a new state budget in three weeks.

Top Democrats who are involved in the governor's political affairs said this morning that no "stay strategy" is in the works.

A growing number of politicians, led by Republicans, have called for Spitzer's resignation. This morning, though, a Democrat from Buffalo jumped off the Spitzer bandwagon.

"My hope is that he will resign as soon as possible," said Assemblyman Mark Schroeder.

But advisers believe the governor is trying to work out a deal with prosecutors to avoid criminal charges in return for his resignation.

link

[ProSense]

38. Mr. Spitzer’s ‘Private Matter’

Editorial

Mr. Spitzer’s ‘Private Matter’

Published: March 11, 2008

New York Gov. Eliot Spitzer could not have been more wrong in his brief public appearance after the world learned that he was suspected of patronizing a prostitution ring. He did not just betray his family in a private matter. He betrayed the public, and it is hard to see how he will recover from this mess and go on to lead the reformist agenda on which he was elected to office.

<...>

While few clients of prostitutes face criminal charges, law-enforcement affidavits raise at least the possibility of criminal charges based on transporting a woman across state lines for prostitution. Mr. Spitzer’s own record of prosecuting such cases gives him scant breathing room. As state attorney general, he prosecuted prostitution rings with enthusiasm — pointing out that they are often involved in human trafficking, drug trafficking and money laundering. In 2004 on Staten Island, Mr. Spitzer was vehement in his outrage over 16 people arrested in a high-end prostitution ring.

A further tragedy here, beyond the personal one of the Spitzer family and the damage he has done to the reform cause, is that Mr. Spitzer’s targets are now relishing their tormentor’s torment. Those on Wall Street who fumed at having to make their world fairer for ordinary shareholders can now chortle with satisfaction in their private enclaves. For New York Republicans, who have blocked some of the most important reforms in Albany, it is hard to imagine the private glee — especially at a moment when they are fighting desperately to hold their majority in the State Senate.

Sadly, this was not the first time that Mr. Spitzer has been caught up in his own arrogance. For all his promise as governor, Mr. Spitzer’s first year was unnecessarily rocky and full of the kinds of mistakes that come as much from hubris as from being new on the job. After succeeding with a few reforms, the governor’s ill-fated attempts to smear his Republican opponent lost him months of progress. Only recently had he seemed to be tempering his abrasive style.

Mr. Spitzer did not seem to understand on Monday what he owed the public — a strong argument for why he should be trusted again. The longer he hesitates, it becomes a harder case to make.