TheAgitator.com
Feds: Investigation Started With Spitzer, Not Escort Service
Monday, March 10th, 2008The 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 kin 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.
Spitzer, who made his name by bringing high-profile cases against many of New York’s financial giants, is likely to be prosecuted under a relatively obscure statute called “structuring,” according to a Justice Department official.
Structuring involves creating a series of financial movements designed to obscure the true purpose of the payments.
Prosecutors reportedly have a series of e-mails and wiretapped phone conversations of Spitzer.
In a interview two years ago, Spitzer, then-attorney general, told ABC News he had some advice for people who break the law. “Never talk when you can nod, and never nod when you can wink, and never write an e-mail because it’s death. You’re giving prosecutors all the evidence we need,” he said.
So, so delicious. The investigation apparently goes back to last summer, and involves thousands of emails and text messages. Which means this wasn’t his first trick.
(Insert obligatory libertarian disclaimer about the inanity of money laundering and prostitution laws here.)
This is really tough. I fucking hate Spitzer. I think he’s among the worst people in the world. However, as I’m sure we’d all agree, there really is no crime here. so as much as I would love to see this asshole suffer, I can’t morally justify it. The embarrassment and shame are, as you say, delicious, but the thought of anyone going to prison for what he actually did is disconcerting. We all spend a lot of time on this blog lamenting the number of people in prison for consensual crimes. To be consistent, I think we have to extend the same courtesy to Spitzer, even if he was unwilling to do the same for anyone else.
I hope he resigns, then lobbies for reform of victimless crime laws. It would be a nice second act (a la Bob Barr).
Incredible. Just incredible.
Prostitutes brought down by their association with a politician. Seriously. Not just a punchline.
“I think we have to extend the same courtesy to Spitzer, even if he was unwilling to do the same for anyone else.”
I would usually tend to agree with that, except he has had a hand in putting others in prison for the same/similar crimes so i tend to apply the “live by the sword, die by the sword” standard in this case.
Time to take out the trash.
I can’t wait to see the perp walk.
We have a Public Corruption Squad?????????
I hate the fact that I agree with Greg N. Seriously, it couldn’t have happened to more a cynical, corrupt, asshole politician. Even so, I don’t see any reason that what he has done should be a crime. Resignation? Hell yes. Indictment? I don’t think it’s worth it.
[...] a vaguely related note, I’m also cackling at what happened to Spitzer. He’s a victim of idiotic laws against victimless-crimes [...]
Does anyone else here think that the investigation smells like it was politically motivated? I think the feds at the behest of the white house were sniffing around spitzers finances to see what would come up.
BobzBob March 10th 10:40 pm
“Does anyone else here think that the investigation smells like it was politically motivated? I think the feds at the behest of the white house were sniffing around spitzers finances to see what would come up.”
What about him? What was he doing all these years? He cracked down on some but not others?
What do we know of what he was really doing up there?
Maybe he was politically motivated too? Or motivated otherwise?
One thing’s for sure, he took people for a ride, for a long time.
Yep. Spitzer ’s a Democrat. And his star was rising until this morning. Now this bombshell drops and he’s history. BobzBob’s right, it sure sounds suspicious.
You know even a witch hunt fails when you can’t find a witch!
It was not the banks, or the feds that broke the law. It was Spitzer all by himself.
Makes me desire a trip to Albany to console the poor wife! But then again, if she was being a real wife, he would most likely not have been buying it elsewhere.
Remember two things, we reap what we sow. and, KARMA is one bitch you really don’t wanna F–k with!
AC,
I hate that I agree with me too. Spitzer has to rank in the top 1% of loathsome politicians, and this episode just confirms his narcissism and arrogance, and contempt for the very laws he expects others (and only others) to follow. This really couldn’t have happened to a better person, and I won’t lose any sleep if he does end up in jail.
However, we libertarians are big on principle. We support federalism even though it may lead to bad outcomes (e.g., racism) (though I tend to take a more “centralist” view on that than Radley (or, say, Gene Healy) does). We also champion the rule of law. As such we can’t relish the idea of throwing a guy in jail just because we don’t like him or because he’s acted viciously in the past (unless you think “statism” is a crime, like some of the Mises Institute kooks do).
I think the libertarian principle is clear here. Like all principles, it can be a tough pill to swallow, but, like always, it’s up to us (and only us, apparently) to put principle above politics or even personal desire. That really does make us the better people in the end.
http://www.extrememortman.com/politics/cant-we-at-least-agree-with-spitzer-on-this-policy/
Greg N.,
I’m not counting myself as a libertarian (I’m just myself), so I may have the wrong misconception: I was under the impression that libertarians were people who used their head to determine the best course of action or response, and not people who were slaves to any “principles”. If that’s not so, I was wondering whether the principles you mentioned are codified somewhere I can read up on them, or whether they are open for anyone’s interpretation.
(For the record, I myself am full of glee - this couldn’t happen to a more appropriate person, and as Radley said in an earlier post, I also hope his fall will be “steep and severe”.)
Jozef,
I wouldn’t characterize libertarians as being “slaves” to principle. That’s a bit melodramatic. However, unlike most political activists, we actually do have principles, and we take them seriously. Do we hold on to them no matter what the cost? Of course not. No serious libertarian is going to allow the world to explode just to protect the sanctity of a given person’s property rights. However, we do take property rights seriously, and, in the normal course of events, you can count on us–guided by our principles–to stand up for property rights.
Having principles and using one’s head are not mutually exclusive. One can be guided by principles while not being a “slave” to them. Principles allow us to make sense of things, by giving us a starting point for analysis, etc. I outlined above a few of the principles that generally guide us. Another would be that we distinguish between vices and crimes. Here, I see plenty of vice, but no actual crime. As such, both my brain and my libertarian principle (admittedly there’s a lot of overlap there) tell me this guy shouldn’t be in prison.
Humiliated? Sure. Ruined political career? Absolutely. A cage? Nah.
Jozef, judgement and principles are not somehow at odds with each other as you appear to be implying. Everyones’ principles are, individually, the sum total of their judgement.
The reason why it’s dangerous to ignore principles in this case just because Spitzer is loathesome is that it endorses the idea that justice is fluid and that different rules apply to different people.
Logically, the correct attitude to this ought to be a condemnation from Spitzer of his own behaviour and a request that he be indicted and put in prison while libertarians protest that there is no victim and that therefore noone should be charged with anything.
Of course, we can assume that Spitzer isn’t going to argue against himself because his principles look to be shaky even by normal political standards. The question then is whether who he is has an effect on the libertarian position.
I say not, though I’d be less upset than usual if he fell foul of a system he contributed to.
Jozef, if the principle is sound, one will never be a slave to it.
Spitzer ought to be prosecuted to the fullest extent possible under the law. This should “send a message” to every one of his political buddies how bad these laws are.
Ain’t gonna happen. In his limitless arrogance he’ll ride it out Craig style.
Anybody else bothered that supposedly a bank report to the Feds got the ball rolling? It’s not only the Gubmint watching you, you got to assume it’s damn near everybody. Whatever happened to “Mind your own bussiness, not thy neighbours’ “?
Although I wouldn’t be surprised if the Feds lied on that little detail and it was really the Repub machine going after a Dem. But why Spitzer? Was he that much of a thorn in their side?
“Insert obligatory libertarian disclaimer about the inanity of money laundering and prostitution laws here”
Just saw this. Agree with the prostitution part, but money laundering laws have a purpose. A lot of damage can be done by real criminals. To be able to go after their proceeds is only sensible. It’s only a problem when the laws are used to catch Uncle John hiding his slush fund from Aunt Agatha.
I have to agree with some here in that I dislike (hate is such a powerful word) Spitzer, but we should all strive to be fair, even with those who weren’t. I believe it’s the American way to take the moral high ground and not sink to his level. Should he resign? Absolutely! Should we spend taxpayer dollars to enforce a stupid law that we don’t agree with in principle? I don’t think so.
We’ve heard a lot about Jury Nullification on this blog in the last couple of days. I believe this is a prime candidate for nullification based on the grounds stated above.
Nando,
Head over and try the jury nullification thing on Patterico. This time he might have an open ear. Former colleague in peril , brother law enforcement guy and all.
All this talk about not prosecuting Spitzer for prostitution or money laundering is kind of silly. Of course I don’t believe either of those things sould be against the law. But it’s not possible to prosecute Spitzer for the things he should be held accountable for, so I don’t have a problem with him rotting in prison for things that shouldn’t be crimes. Just like I wouldn’t lose any sleep over him being eaten by alligators.
What a f******* hypocrite!! “Mr. Clean”, oh so high and mighty Eliot Spitzer, busted getting hookers?
Just goes to show how hypocritical all of these Washington A-holes are. Self-serving jerkoffs taking the “high road” so they can get a better office, with better perks and more money and favors. DISGUSTING.
Greg N., Bernard, Martin - many thanks for the explanations. I admit I may have been a little melodramatic (coming to work at 6AM and finding a stack of work to last me to 6PM does that to one), but I’m still not sure where to find the given principles. I know, this is coming dangerously close to asking for the definition of libertarianism, but I’m still at a loss as for what principles should the average libertarian adhere to (other than common sense and the golden rule).
I am still waiting for some in-depth and non-pun-filled writing about this guy. I have read a lot of pundits and they are all in one big collective circle jerk, gleefully pointing out ironies, giggling like schoolyard boys over the word “whore”, but never once really justify the reason for their Schadenfreude (yes, this event has already ruined THAT word).
So, what makes this guy different from any other politico? Why is this headline news? Let me in on your secret; give me the keys to the joke.
I’m libertarian. I’m a slave to principles. My number one principle is that government is not your friend and if you randomly kick an elected official in the nuts as hard as you can, there’s about a 95% chance he deserved it. Unfortunately, I never do that for fear I’ll accidentally connect with one of the good guys. In the case of Spitzer I’d think I’d be safe.
Jozef. I’m not even sure that it’s a tenet of libertarianism so much as a tent of any ideology (and a tenet that’s much abused in practice). Obvious alternative examples of the same thing are as follows:
~
Fiscally conservative republicans shouldn’t celebrate when their own party waste huge amounts of money on government expansion or on pork projects that they favour (and fiscally socialist democrats likewise shouldn’t bewail a republican expansion of government).
Cops who advocate second amendment rights shouldn’t bay for blood when cops get killed by people reasonably exercising them.
People who think prostitution should be illegal ought not to visit prostitutes.
~
The principle itself says nothing about what libertarians should or shouldn’t support. It just says that if you support the legalisation of consensual crimes then you shouldn’t push for the prosecution of people who commit them.
Unfortunately because noone very much adheres to it in the real political sphere it kind of gets lost. No doubt Rush Limbaugh will be crowing about this latest democrat hypocrisy while popping a few more pills.
“I can’t morally justify it.”
Since he *lived* by the bullshit, he can bloody well *die* by it, too.
To hell with Spitzer.
You mean a conspiracy? Everytime I start talking about conspiracies, my wife shoves an ice pick about 4 inches into my left ear. So I’m starting to lean more toward coincidence theory on most things now.
Meh, I have no problem with him being prosecuted. As said earlier, live by the sword, die by the sword. He’s the head honcho for the state, if he can’t be held liable for breaking the laws no matter how stupid they might be (prostitution one not laundering), whats the point?
I also love the conspiracy angles being tossed out. I’m an apologist or tin foil hat guy or just a weirdo because I thought Craig’s setup in the bathroom stunk, (though not some left wing conspiracy) but the Spitzer thing is pure republican chicanery? Puhlease. Its possible but unlikely. If you want to go down that road, I’d look at the super delegate, inter dem party angle.
Its likely that Spitzer is an arrogant wanker who was getting some on the side. Hopefully it was simply that and not that his wife was fridgid harvard law leftie type because then I’d have to have some sympathy for the hypocrite bastard.
Update:
Republicans are talking impeachment if he doesn’t resign in 48 hrs.
From what I understand, Spitzer’s bank reported his unusual money transfers to the Feds on the “Suspicious Activity Reports,” as they are required to do with all accounts under the Bank Secrecy Act. If I remember right, Spitzer, as AG, made his bones prosecuting Wall Street execs for underhanded money movement. Then that led to Sunny Point #2: Spitzer’s money movements weren’t bribes, they were prostitute fees. Spitzer also made headlines as AG going after brothels. The cherry on top is the quote where Spitzer advised lawbreakers not to send e-mails, which leaves an electronic record of their dealings. Spitzer’s guilty on all three. NICE.
I don’t think there is any right vs. left conspiracy here. The only conspiracy is using banks to spy on American citizens under the guise of catching money launderers. So awesome that one of the high-and-mighty government figures of the day, who had no problems with spying on law-abiding citizens to catch money launderers and prostitutes, was caught eyeball-deep in doo-doo by the very same spies he probably used to bust everyone else. I’m loving every minute of it. It’s about time these sanctimonious jerks in office got a taste of their own medicine. Unfortunately, the laws for lawmakers are different, as are the punishments. I doubt he even gets fined.
TC - “if she was being a real wife, he would most likely not have been buying it elsewhere” - I’m sure that was just a joke (bad as it was). That quite a few men around the net are saying these past two days. Really now, if he was any type of decent human being, he wouldn’t have been such a slimeball to say one thing, but do another. As if he’s better than anyone else. And to humiliate his wife and daughters in such a way. Yeah, only males seem to see the humor in blaming his wife for him needing a whore for his sexual release. Could never be he has issues and should accept responsibility for all he has let down. (shrugs)
Well the system sometimes will take a misdemeanor and trump it up into a money laudering or racketering charge for marijuana dealers, prostitution and gambling crimes so they could give a defendant life or 20 years and strip them of all their assets. I think the real reason they do this is not a moral issue but a economic one to set a example that anyone who makes a fast or easy dollar will be smashed and destroyed. If you gamble where it’s legal like the government lotto and scratch off tickets and lose your shirt that is perfectly OK because the systems and law enforcement motto is “We the system and law enforcement are always right and you are always wrong.” So if you violate any of these laws prepare to be destroyed and if you make any wrong move or flinch when they come to arrest you prepare to get shot and even killed. They are good cops and agents but this stuff is over the top. But Spitzer built a career by destroying people some who deserved it but many who didn’t or were over punished so now he has to sweat it out. He should have went to Nevada to Dennis Hof’s legal brothel The Bunny Ranch!