Mar 14 2008
Where Did Spitzer Get His Fun-Money?
As I posted when the news broke about Eliot Spitzer’s dalliances in illegal activities while he was supposedly prosecuting the very crimes he was participating in there was a clear concern his activities could be seen as a bribe of some kind. Clearly he stayed away from prosecuting the one prostitution ring he was using – which is enough to make one think was the service he was getting some kind of favor for his office to look the other way. Simply assisting him in setting up methods to hide his financial transactions from law enforcement scrutiny would be seen as a “favor” to the Attorney General.
It seems I was not far off base in wondering about the financing, or favors provided to help hide the finances, since the NY Times is reporting authorities are scrutinizing the money trail in earnest:
Federal prosecutors are investigating whether Gov. Eliot Spitzer used campaign funds in connection with his meetings with prostitutes, including payments for hotels or ground transportation, three people with knowledge of the investigation said.
Prosecutors have asked the governor’s lawyers about the travel arrangements for three trips, including his Feb. 13 rendezvous with a prostitute at the Mayflower Hotel in Washington. The United States attorney’s office in Manhattan has also asked about the governor’s use of car services during trips to Washington.
The governor’s lawyers have begun consulting with a campaign finance expert who has long worked for Mr. Spitzer’s political organization to see whether campaign money was spent on the trips, including some as recently as last month, a person briefed on the investigation said.
I am confident authorities will get around to noting that the prostitution ring’s support in hiding the flow of money is just as much a quid pro quo as offering the services for free. The deal here is Spitzer was provided support from a criminal organization to help hide is involvement with said criminal organization. Only the most deranged do not see the implication of this kind of arrangement. The bribe doesn’t need to come in the form of money. It can come as assistance in hiding something from law enforcement as well.
Addendum: I want extend my comments about why covering up the financial transactions is really bad for those charged with enforcing our laws. Those charged with enforcing the laws are taking a quid pro quo when they work with criminals to hide participation in crimes they would normally be out prosecuting or charging. It is now different from a policeman getting drugs from someone he should be arresting. The nature of the crime is irrelevant, it is the corruption that is the crime against society.
Which leads me to a second observation about human nature. Once those in power succeed in bending the rules for personal gain or pleasure (there’s a difference?) they tend to not be able to stop. Look at all the bribe scandals in Congress. It is a like an addiction, to see how much you can break the rules and get in return. My guess is Spitzer could have other skeletons in his closet once they crack open the details of his hidden life.
After years of spending weekends in a modest, rented home in Colombia County, the Spitzers recently paid $4 million to buy the entire 160-acre property. The family’s main residence continues to be a luxurious Fifth Avenue apartment in a tower built by his father in 1968. Spitzer lives there rent free, courtesy of his dad, who owns at least 10 such apartment towers. When his three children were younger, Spitzer shelled out close to $50,000 per year for nannies.
Spitzer, a rich man, won’t miss New York governor’s pay
So AJ he has the funds available to pay for the girls.
Estimates are his father would leave him over 200 million.
If the funds all came out of his personal accounts is one thing, following the money will tell the rest if it can be traced back to improper areas.
Since he is a democrat and thinks everyone else is stupid, he probable used his campaign funds to pay for this claiminmg business expenses a la John Edwards’ beauty treatments. You have to understand that democrats never walk a stright line if there is a crooked one available. Also they never have enought money taken from the government. It is free, don’t you know.
Will have to dig up where I read it, but if I recall correctly what started all this is he was doing multiple wire transfers at his bank to cover the costs of his invoice to the shell company collection agency for the VIP place.
When he tried to have his signature removed later from some of the wire transfer authorizations the bank told him it was to late, since the wire transfers had already been done.
Since he acted in a suspicious nature and the bank considered that it may deal with some money laundering of potential bribe money to him, they initiated a Suspicious Activity Report related to the transactions.