Eliot Spitzer prostitution scandal

Eliot Spitzer prostitution scandal

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Eliot Spitzer prostitution scandal

Eliot Spitzer in 2004

The began on March 10, 2008, when The New York Times reported that Democratic New York Governor Eliot Spitzer had patronized a prostitution service called Emperors Club VIP.^[1] This ultimately led him to announce his resignation as governor on March 12, effective March 17.^[2]

The Scandal

Client?9
Reactions
"Kristen"
Impact

See also
References
External links

The Scandal

Client?9

Governor Spitzer, referred to as "Client?9" in an affidavit filed in US Federal Court,^[3] arranged to meet at the Mayflower Hotel in Washington on February 13, 2008 with a prostitute named "Kristen" ? an "American, petite, very pretty brunette, 5 feet 5 inches and 105 pounds" (165 cm, 47 kg).^[4] "Kristen" was later identified as the 22 year old Ashley Dupré.^[5]^[6] She intended to travel from New York City for the planned tryst and Spitzer agreed in advance that he "would be paying for everything ? train tickets, cab fare from the hotel and back, mini-bar or room service, travel time and hotel".^[7] After the assignation on February 13, 2008, Spitzer paid her $4,300 in cash.^[8] The payment included $1,100 as a deposit with the agency toward future services.^[9]

The Mayflower Hotel in Washington.

Room 871 at the Mayflower Hotel was booked under the name George Fox, a pseudonym Spitzer had allegedly been using that was later revealed to be the name of his close friend, a hedge fund investor.^[10]^[11] Reportedly, some of this information came to light from a federal wiretap.^[12]^[13]^[14]

Spitzer had at least seven or eight liaisons with prostitutes from the agency over six months, and paid more than $15,000 for their services. Federal agents had him under surveillance twice in 2008.^[15]^[16]^[17] According to published reports, investigators believe Spitzer paid up to $80,000 for prostitutes over a period of several years ? first while he was attorney general, and later as governor.^[18]^[19]^[20]

Screenshot of the website of Emperors Club VIP.

The investigation was purportedly initiated after North Fork Bank^[21] reported suspicious transactions to the Internal Revenue Service (IRS) as required by the Bank Secrecy Act. According to Newsday, Spitzer wanted to transfer more than $10,000 to what turned out to be a front for the prostitution ring. However, he broke up the transactions into smaller slices due to federal law requiring the reporting of any transfer of $10,000 or more. When he tried to get his name taken off the wires, the bank refused, saying that the money had already been wired out and that it would be improper to do so in any case. The IRS's Criminal Investigation Division then started a probe, initially fearing that Spitzer was the victim of either extortion or identity theft.^[22]

Screenshot of the website of Emperors Club VIP showing list of prices for escort services.

North Fork's report in July 2007 went largely unnoticed until HSBC in the fall filed a report that the transactions were going to QAT International and QAT Consulting Group, which were offshore shell companies operating as a front for the Emperors Club.^[23]

Later, the IRS contacted the FBI to investigate possible political corruption. The investigation led Federal authorities to link the money transfers to the Emperors Club.^[24]^[25] Prosecutors charged the four people operating the escort service with violations of the Mann Act, a week prior to the revelations of Spitzer's involvement.^[26]

On November 19, 2007, Republican operative Roger Stone sent a letter to the FBI saying that Spitzer "used the service of high-priced call girls" while in Florida. Stone provided detail saying that Spitzer wore calf-length black socks while performing the sex act.^[27]

Spitzer announced on March 12 that he would resign his post as Governor effective March 17, amid threats of his impeachment by state lawmakers.^[2]

"I cannot allow for my private failings to disrupt the people's work," Spitzer said at a news conference in New York City. "Over the course of my public life, I have insisted ? I believe correctly ? that people take responsibility for their conduct. I can and will ask no less of myself. For this reason, I am resigning from the office of governor."^[18]

Reactions

After Spitzer's initial press conference, New York State Assembly Republican Minority Leader James Tedisco and Republican New York Congressman Peter King separately called for his resignation. Tedisco later announced that he would initiate impeachment proceedings in the State Assembly if Spitzer did not resign.^[28] Spitzer's office and the U.S. Attorney for the Southern District of New York declined to comment,^[11]^[29]^[30] except to say that "There is no agreement between this office and Gov. Eliot Spitzer, relating to his resignation or any other matter."^[31]

"Kristen" revealed on March 13, 2008 she had gone without sleep since the scandal broke three days prior, and said she did not want to be thought of as a monster.^[32]

The real George Fox, who is a close friend and campaign donor of Spitzer, issued a statement denying any connection to the scandal beyond the unauthorized use of his name.^[33] He said that he was "disappointed and distressed" that Spitzer had used his name as an alias, and confirmed that Spitzer privately apologized to him.^[34]

According to Nell Minow, a corporate-governance expert, Wall Street reaction to the scandal has been largely positive, due to a general dislike of Spitzer amongst investment professionals.^[35] Governor Spitzer made his rise to victory in New York City politics promising "ethics and integrity to be the hallmarks of [his] administration." He had prosecuted several prostitution rings in his career,^[36]^[37]^[38]^[39] and his connection with a prostitution ring was felt as a betrayal by some women's rights and anti-human trafficking groups that had previously worked with him.^[40]

In an editorial reflecting on the scandal, political philosopher Martha Nussbaum wrote "Spitzer's offense was an offense against his family. It was not an offense against the public. If he broke any laws, these are laws that never should have existed and that have been repudiated by sensible nations."^[41]

"Kristen"

Issue of New York Post containing Ashley Dupré photographs

"I just don't want to be thought of as a monster," the 22-year-old Dupré,^[42] an aspiring pop recording artist living in Manhattan, told the New York Times, "This has been a very difficult time. It's complicated."^[6] Dupré was the subject of intense media coverage in the days after her role in the scandal became public. On March 15, the New York Post published an extensive photo shoot showing Dupré in provocative poses.^[43] , Dupré's profile on MySpace.com had received nearly 12 million page views.^[44]

Dupré had reportedly been offered $1 million by Hustler to pose nude for the magazine, and has received unofficial offers from Penthouse, among others.^[45]

Impact

Spitzer announced on March 12, 2008 that he would resign his post as Governor effective March 17 at noon amid threats of his impeachment by state lawmakers.^[2] Lt. Gov. David Paterson succeeded him on March 17, 2008.

By resigning as governor, Spitzer lost his status as a superdelegate in the 2008 Democratic nomination for president, causing his pledged vote to be taken away from candidate Hillary Clinton. This also reduced the total number of superdelegate votes available. Though David Paterson, the Lieutenant Governor of New York at the time and Spitzer's eventual successor, is also a Democrat and a supporter of the Clinton campaign, Paterson already had a superdelegate vote because of his status as a member in the Democratic National Committee and cannot vote twice. ^[46] Spitzer discussed his status as a superdelegate on The Colbert Report on February 12, 2008, the day before Spitzer met his escort at the Mayflower Hotel. ^[47]

The season 18 Law & Order finale was based on this case.