The U.S. Attorney in Manhattan won’t file criminal charges against former New York Gov. Eliot Spitzer for his involvement in a prostitution ring.
The state’s 54th chief executive resigned March 17 amid allegations that he was a client in the Emperors Club VIP. He could have been charged with the Mann Act, which prohibits transporting prostitutes across state lines, but federal prosecutors instead investigated him on questionable financial transactions.
An investigation by the FBI and the IRS’ Criminal Investigation Division determined that Spitzer made payments to bank accounts, one named QAT Consulting, that had been used to launder more than $1 million worth of criminal proceeds derived from the Emperors Club VIP’s prostitution business, according to U.S. Attorney Michael Garcia.
Garcia said Spitzer “acknowledged to this office that he was a client of, and made payments to, the Emperors Club VIP. Our investigation has shown that on multiple occasions, Mr. Spitzer arranged for women to travel from one state to another state to engage in prostitution.”
However, even though the Southern District of New York office announced March 6 that it was filing criminal charges on the structuring scheme, it announced yesterday that there was no evidence of misuse of public or campaign funds.
“We have determined that there is insufficient evidence to bring charges against Spitzer for any offense relating to the withdrawal of funds for, and his payments to, the Emperors Club VIP,” Garcia said. “In light of the policy of the Department of Justice with respect to prostitution offenses and the long-standing practice of this office, as well as Spitzer’s acceptance of responsibility for his conduct, we have concluded that the public interest would not be further advanced by filing criminal charges in this matter.”
A first-term Democrat, Spitzer took office in January 2007 after serving as New York’s attorney general, and was known for his hard-lined approach to fraud and reform.
Former Lt. Gov. David Paterson, who took over as governor after Spitzer’s resignation, has announced he plans to seek re-election.
Edit to add Link:
http://www.bizjournals.com/albany/stories/2008/11/03/daily50.htmlAbout what I expected would be the outcome. So do you think the State AG will file criminal charges?
