GAMBLING NEMESIS SPITZER IN TROUBLE

14 March 2008

Prostitution allegations made against New York governor


The US press, including the Wall Street Journal and the New York Times is headlining a story involving the Governor of New York, Eliot Spitzer, who as Attorney General led many initiatives against online sportsbetting and Wall Street wrongdoings in the state.

Allegations have been made that Spitzer was caught on a federal wiretap arranging to meet with a high-priced prostitute at a Washington hotel last month, according to a law enforcement official and a person briefed on the investigation. The tap was part of a federal investigation into a prostitution ring.

The wiretap captured a man identified as Client 9 on a telephone call confirming plans to have a woman travel from New York to Washington, where he had reserved a hotel room, according to an affidavit filed in federal court in Manhattan. The person briefed on the case and the law enforcement official identified Spitzer as 'Client 9'.

The woman has been identified as Temeka Rachelle Lewis aka 'Rachelle' aka "Kristen," allegedly part of a prostitution ring.

Spitzer, a first term Democrat, made a brief public appearance as the week commenced during which he apologised for his behaviour, and described it as a “private matter.” He did not address his political future.

“I have acted in a way that violates my obligation to my family and violates my or any sense of right or wrong,” said Spitzer, who appeared with his wife Silda at his Manhattan office. “I apologise first and most importantly to my family. I apologise to the public to whom I promised better.”

“I have disappointed and failed to live up to the standard I expected of myself. I must now dedicate some time to regain the trust of my family.”

Before speaking, Spitzer stood with his arm around his wife; the two nodded and then strode forward together to face more than 100 reporters. Both had glassy, tear-filled eyes.

The governor learned that he had been implicated in the prostitution inquiry when a federal official contacted his staff Friday, according to the person briefed on the case. The governor informed his top aides Sunday night and this morning of his involvement, and cancelled public commitments before holding the press briefing. The governor’s aides appeared shaken before he spoke.

The Republican state party and a leading Republican legislator called for the governor to step down. James Tedisco, a Republican Assemblyman from Schenectady who has clashed loudly and publicly with Spitzer, called on the governor to step down if the allegations are true.

“The governor who was going to bring ethics back to New York State, if he was involved in something like this, he’s got to leave. I don’t think there’s any question about that,” Tedisco said.

The man described as Client 9 in the affidavit arranged to meet with a prostitute who was part of a ring, the Emperors Club VIP, on the night of February 13. Spitzer traveled to Washington that evening, according to a person told of his travel arrangements.

The affidavit says that Client 9 met with the woman in hotel room 871 but does not identify the hotel. Spitzer stayed at the Mayflower Hotel in Washington on Feb. 13, according to a source who was told of his travel arrangements. Room 871 at the Mayflower Hotel that evening was registered under the name 'George Fox.' Other reports said that the register showed a street address similar to that of Spitzer's residence.

The law enforcement official said that several people running the prostitution ring knew Spitzer by the name of George Fox, though a few of the prostitutes came to realise he was actually the governor of New York.

Fox is a friend and donor to Spitzer. Asked in a telephone interview Monday whether he accompanied Spitzer to Washington on Feb. 13 and Feb. 14, Mr. Fox responded: "Why would you think that? I did not.”

Told that the Room 871 at the Renaissance Mayflower Hotel was registered in Fox’s name but with Spitzer’s Fifth Avenue address, Fox said, "That is the first I have heard of it. Until I speak to the governor further, I have no comment."

Federal prosecutors rarely charge clients in prostitution cases, which are generally seen as state crimes. But the Mann Act, passed by Congress in 1910 to address prostitution, human trafficking and what was viewed at the time as immorality in general, makes it a crime to transport someone between states for the purpose of prostitution. The four defendants charged in the case unsealed last week were all charged with that crime, along with several others.

The New York Times reports that Spitzer had a difficult first year in the gubernatorial office, rocked by a mix of scandal and legislative setbacks. In recent weeks, however, Spitzer seemed to have rebounded, with his Democratic party poised to perhaps gain control of the state Senate for the first time in four decades.

Though his signature issue was pursuing Wall Street misdeeds, as attorney general Spitzer also prosecuted at least two prostitution rings as head of the state’s organised crime task force. In one such case in 2004, Spitzer spoke with revulsion and anger after announcing the arrest of 16 people for operating a high-end prostitution ring out of Staten Island.

Spitzer was also prominent in anti-online gambling initiatives whilst AG for New York, being widely credited with forcing Paypal out of the Internet gambling market and a Citibank criminal prosecution for knowingly assisting in online gambling. Though the charges were dropped after Citibank promised to give $400 000 to counseling services for gambling addicts, the threat of prosecution persuaded Citibank and other credit card issuing companies to eschew internet gambling credit. He was also active in anti-online sportsbetting raids.

Bitter in-fighting and accusations of dirty tricks have characterised politics in the state of late. The Albany County district attorney is set to release the results of his investigation into Spitzer’s first scandal, his aides’ involvement in an effort to tarnish the reputation of Majority Leader Joseph L. Bruno, the state’s top Republican and a vociferous opponent of the governor.

The governor's executive chamber was formally informed of the governor's problems at a 6pm general staff meeting, where Richard Baum, the governor’s top aide, made no mention of a resignation and urged his colleagues to keep their heads down and continue as best they could with the day-to-day work of state government.

Under the state constitution, should Spitzer resign, the lieutenant governor would serve the remainder of the his term.

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