Spitzer Is Linked to Prostitution Ring

Aardvark154

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S.C. Joe said:
His date must be one high class lady.
I would hope that a good many Canadian SPs would have a similar sense of "class,” integrity, self worth and discretion. This is a peculiar "business" and we all have our own takes on it.

For myself, although I say this merely as a comment, not with any sense of “I’m better than you,” I didn’t hobby while I was married. That said that is an issue of morality for the Governor and his family to deal with.

To me Governor Spitzer’s larger ethical problems involve his smear campaign against the majority leader of the New York State Senate. His Idiotic idea regarding issuing drivers licenses to illegal Aliens. His stubbornness in admitting he was mistaken. And, finally his hypocrisy in statements when he was Attorney General of New York talking about a “Call girl” operation on Staten Island as - being merely common prostitution.

Unfortunately he is likely to suffer political damage from the "sex" problem rather than the larger "ethical/moral" problem.
 

BaldEagke

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Puzzled by the replies. We all enjoy sex and view it as enjoyable/fun. This dude nailed people hurting working guys IRA's/retirements. Telling someone they have to work another couple of years to pay an investment shops greed does not compare to a consenting couple agreeing to a trist. He will suffer enough in his personal life. Too bad the people he helped by being a hard ass nailing excessive greed will never know what he did for them.
 

Don

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S.C. Joe said:
A guy like Mr Spitzer could NOT just run to Toronto and call up a escort company. Hes the GOVERNOR of the state of NY. His face is well known. You think these ladies are dumb? They would know who he is, if not before hand, afterwards while watching TV one day.
Before today, I had no idea what he looked like. I'm willing to bet most people in Toronto have no idea what he looked like, much less who the hell he is. And I follow US politics fairly closely. I'd bet that 95% of SP's wouldn't recognize him up here.
 

ocean976124

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According to Yahoo News today what got him in federal trouble was:
Spitzer allegedly paid for the call girl to take a train from New York to Washington — a move that opened the transaction up to federal prosecution because she crossed state lines.
 

danmand

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The american system is great at getting rid of smart politicians. In todays world,
neither Rosevelt, Kennedy or Johnson would be in office.

Nixon and Carter would.
 

Aardvark154

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The New York Times has more this morning. http://www.nytimes.com/2008/03/11/nyregion/11inquire.html?_r=1&hp&oref=slogin

The investigation began when banks noticed the frequent transfers from several accounts of several thousand dollars and filed suspicious activity reports with the Internal Revenue Service. The accounts were traced back to Spitzer, prompting public corruption investigators to open an inquiry. Their suspictions where heightened when the money ended up in bank accounts of what appeared to be shell companies, corporations that essentially had no real business. They intially suspected public corruption and called in the Public Corruption unit of the FBI.

They then discovered the Escort link and with the aid of a confidential informant where able to obtain court ordered wiretaps on the cellphones of those suspected of involvement in the escort service.

Possible charges against Spitzer could range from violation of the Mann Act, to banking law violations or even wire fraud.

Of course something that has been lost in all this is that those from the Emperor’s Club caught up in all this due to Spitzer's having drawn Police attention to them are still sitting in jail in New York. :(
 

exbrower

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Rule 1 aways pay cash!

I would go off on Spitzer about the evils of prostitution but I spent two hours with Asian Stephanie this week and I am feeling too mellow.
 

onthebottom

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The Republicans are threatening impeachment, his staff is talking resignation.

Hopefully his wife has more self respect than Hillary and leaves the bastard.

OTB
 

danmand

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bbking said:
...such an expression of outrage on what is really an escort review board. The hypocrisy of it.

Why do you have to include Hilary here ... and why is it a question of self respect ... I do believe the marriage vows include for better or worse ... this would be as about as worse at it gets for a marriage. Questioning how people should approach their vows as somehow a matter of self respect is little much even from you.

Having said that ... Spitzer has broken his contract with the people of New York, considering his holy than though personage got him the job in the first place. Second, if he did this, he has broken several US laws and this alone should cause him to resign.

I would suggest to you that Spitzer resigns, long before that Republican Senator who was caught soliciting sex in an airport washroom.
OTB onl;y has a problem with extramarital sex with women, not men.
 

Aardvark154

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exbrower said:
Rule 1 aways pay cash!
In this instance Governor Spitzer's apparent attempt to hide the money from his wife and pay in cash was what lead to all this. Making multiple deposits and withdrawals of several thousand dollars and shuffling money between accounts (but in the aggregate over a fairly short period of time being over the $10,000 reporting threshold) was what caused the bank to file notices of suspicious activity with the IRS. When the IRS discovered that the money was in accounts owned by Governor Spitzer and was seemingly an attempt to conceal funds, the FBI then launched a Public Corruption probe suspecting that he was involved in bribery, kick-backs or income tax evasion. What they actually found was the Call Girl operation.

In this case it was Governor Spitzer's insistence upon paying cash that lead to the Emperor's Club arrests. :(
 

BaldEagke

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Revenge?

Spitzer played and understood the cost to play. He lost and is now paying the price. Only thing that strikes me odd is Spitzer is very wealthy. Last year, Forbes Magazine estimated his family holding at $500 Million. Why would a few thousand dollar transfer raise a red flag. That is a fraction of a percent and means nothing to him. My belief is this is politically motivated. As a prosecuter he made lots of enemies and it feels like someone is paying him back. The US Gov't is not in the business looking for small change in transfers. Someone had to tip them off.
 

WoodPeckr

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It looks like Spitzer was set up. He made lots of enemies. This sort of stuff is nothing new in DC or the States. Been going on for many a year.
Ironically the banking software that ensnared Spitzer was put in use by order of Spitzer back when he was attorney general in NYS.


Lawyer questions whether Spitzer was set up, noting political prosecutions

RAW STORY
Published: Tuesday March 11, 2008

A prominent New York lawyer who has written for Harper's Magazine about the politically-motivated dismissals of US Attorneys in the Bush Justice Department says he believes there's a strong case that the fall of New York governor Eliot Spitzer was politically motivated.

Spitzer was caught on a federal wiretap discussing plans to meet a high-priced prostitute in Washington, D.C. The news was first reported Monday afternoon in The New York Times.

Later that day, however, ABC News' Brian Ross revealed that federal sources said the prosecution stemmed from an investigation of Spitzer's finances -- not from the prostitution ring.

"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," Ross wrote.

"We had no interest at all in the prostitution ring until the thing with Spitzer led us to learn about it," a Justice Department official told Ross.

Tuesday's Times added: "The rendezvous that established Gov. Eliot Spitzer’s involvement with high-priced prostitutes occurred last month in one of Washington’s grandest hotels, but the criminal investigation that discovered the tryst began last year in a nondescript office building opposite a Dunkin’ Donuts on Long Island... There, in the Hauppauge offices of the Internal Revenue Service, investigators conducting a routine examination of suspicious financial transactions reported to them by banks found several unusual movements of cash involving the governor of New York, several officials said."

"Because the focus was a high-ranking government official, prosecutors were required to seek the approval of the United States attorney general to proceed," they added. "Once they secured that permission, the investigation moved forward."

Horton doesn't buy it.

"Note that this prosecution was managed with staffers from the Public Integrity Section at the Department of Justice," Horton writes on his blog, "No Comment." "This section is now at the center of a major scandal concerning politically directed prosecutions. During the Bush Administration, his Justice Department has opened 5.6 cases against Democrats for every one involving a Republican."

In his post at Harper's, Horton notes:

(1) The prosecutors handling the case came from the Public Integrity Section.

(2) The prosecution is opened under the White-Slave Traffic Act of 1910. You read that correctly. The statute itself is highly disreputable, and most of the high-profile cases brought under it were politically motivated and grossly abusive. Here are a few:
* Heavyweight boxing champion Jack Johnson was the first man prosecuted under the act — for having an affair with Lucille Cameron, whom he later married. The prosecution was manifestly an effort “to get” Johnson, who at the time was the most famous African-American. (All of this is developed well in Ken Burns’s film “Unforgiveable Blackness”

*University of Chicago sociologist William I. Thomas was prosecuted for having an affair with an officer’s wife in France. Thomas was targeted because of his Bohemian social and his radical political views.

* In 1944 Charles Chaplin was prosecuted for having an affair with actress Joan Barry. The prosecution again provided cover for a politically motivated effort to drive Chaplin out of the country.

* Canadian author Elizabeth Smart was arrested and charged in 1940 while crossing the border with the British poet George Barker.


(3) The resources dedicated to the case in terms of prosecutors and investigators are extraordinary.

(4) How the investigation got started. The Justice Department has yet to give a full account of why they were looking into Spitzer’s payments, and indeed the suggestion in the ABC account is that it didn’t have anything to do with a prostitution ring. The suggestion that this was driven by an IRS inquiry and involved a bank might heighten, rather than allay, concerns of a politically motivated prosecution.

"The answer of the Justice Department to all this is likely to be: Trust us," Horton concludes. "This has nothing to do with Spitzer’s guilt or innocence. But it has everything to do with the fading integrity of the Public Integrity Section."
 

danmand

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BaldEagke said:
Spitzer played and understood the cost to play. He lost and is now paying the price. Only thing that strikes me odd is Spitzer is very wealthy. Last year, Forbes Magazine estimated his family holding at $500 Million. Why would a few thousand dollar transfer raise a red flag. That is a fraction of a percent and means nothing to him. My belief is this is politically motivated. As a prosecuter he made lots of enemies and it feels like someone is paying him back. The US Gov't is not in the business looking for small change in transfers. Someone had to tip them off.

That is just common sense. If they have to track anybody who
transfers $5,000 between accounts, they would have to employ hundreds of thousands of people.
 

WoodPeckr

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danmand said:
That is just common sense. If they have to track anybody who
transfers $5,000 between accounts, they would have to employ hundreds of thousands of people.
Not anymore.
NPR did a piece today saying banking software does all this automatically today via computer.
Big Brother watches all today.
 

BaldEagke

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Enemies from prosecutions, Super delegate for Hillary, scares wall street, arrogant and no close friends, lots of stuff makes this an interesting study. Believe in time we will see this is politically motivated. Till then, it will be quite a ride.
 

Aardvark154

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BaldEagke said:
Spitzer played and understood the cost to play. He lost and is now paying the price. Only thing that strikes me odd is Spitzer is very wealthy. Last year, Forbes Magazine estimated his family holding at $500 Million. Why would a few thousand dollar transfer raise a red flag. That is a fraction of a percent and means nothing to him. My belief is this is politically motivated. As a prosecuter he made lots of enemies and it feels like someone is paying him back. The US Gov't is not in the business looking for small change in transfers. Someone had to tip them off.
Well an interview by Miami lawyer Gregory Baldwin, a former Assistant United States Attorney (and coiner of the term smurfing) answers your question quite well.

1) Banks are required by law to file Suspicious Activity Reports to the government whenever they observe something they believe may be a financial crime.

2) Activity, such as Spitzer's transfer of $4,000 to Emperor's Club "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." (in other words trying to both avoid the $10,000 mandatory transfer reporting requirement, and to hide the source and destination of the money.)

3) Spitzer of all people should have known that "He's done enough cases where he's charged money laundering that he would know exactly what kind of information you get from the banks. It's such a perfect example of what goes around, comes around".

- - - - -
Indeed Spitzer might have avoided setting off alarms had he gone to the bank and explained that he was going to be making certain transactions. However, that goes to the entire reason he was making the transactions in cash which was 1) to hide it from his wife 2) to hide that he was Eliot Spitzer. What was he going to do walk into the bank and say "Hi I'm the Governor of New York and I'm going to be making some banking transactions that look like I'm either a) excepting bribes or kick-backs b) trying to evade Income Tax c) being blackmailed and making extortion payments. But don't worry I'm merely breaking New York, Washington, D.C. and U.S. law involving Prostitution. Now I'd like to keep this a secret so please don't call your favorite tabloid newspaper or the Police and rat me out!"

He should have arranged some excuse for a meeting in Canada.
 

WoodPeckr

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Spitzer stepped on lots of powerfull politically connected toes who would definitely like to see him removed.
 
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