Update...
New York's Spitzer Apologizes to Public for Conduct (Update4)
By Jeremy R. Cooke
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March 10 (Bloomberg) -- New York Governor Eliot Spitzer, elected on a vow to clean up state government and raise ethics standards, apologized to his family and the public following a report in the New York Times linking him to a prostitution ring.
``I have disappointed and failed to live up to the standard that I expect of myself,'' Spitzer, 48, said at a Manhattan press conference. The first-term Democrat, with his wife Silda at his side, said he would ``take time to regain the trust of my family'' and report back ``in short order.''
The New York Times story, published on its Web site earlier today, said Spitzer was caught on a federal wiretap planning to meet a prostitute in Washington after arranging for her to travel from New York. The Times, citing a person briefed on the federal investigation, said an individual identified in an affidavit as ``Client 9,'' who met with a woman in the Mayflower Hotel in Washington, was Spitzer.
Client 9 paid $4,300 for an appointment that began on Feb. 13 and ended at 12:02 a.m. the next day, according to the affidavit.
Spitzer, elected in a landslide in November 2006 on a promise to change the state's political culture, gained national prominence by investigating financial analysts, mutual fund managers and insurance companies while state attorney general from 1999 to 2006. The governor is married with three daughters.
``There is certainly a sense right now that there is an aura of unseemliness about too much of what goes on in Albany,'' Spitzer told reporters at a Dec. 21, 2006, news conference before taking office.
Succession Plan
Fox News and WCBS-TV reported after today's news conference that the governor would submit his resignation as soon as today, without saying where they got the information. Should he step down, Lieutenant Governor David Paterson would finish Spitzer's term and the Senate Majority Leader, Republican Joseph Bruno, would take Paterson's place as next in line.
Prosecutors from the office of Manhattan U.S. Attorney Michael Garcia announced on March 6 the arrest of four individuals connected to an international prostitution and money-laundering ring called the ``Emperors Club.''
The four individuals were charged with using the club to arrange trysts between wealthy male clients and more than 50 prostitutes in New York, Washington, Miami, Los Angeles, London and Paris, the complaint said.
Mann Act
The incident was a violation of the Mann Act, which makes human trafficking and prostitution across state lines a federal crime, according to the complaint.
``Although it is not common for so-called johns to be prosecuted, it's not unheard of, and one might make an argument that when our public officials engage in this kind of alleged activity, a strong example should be set,'' said Jim Walden, a former federal prosecutor in Brooklyn, New York, who's now a partner at Gibson, Dunn & Crutcher LLP. He said he backed Spitzer's campaign for governor.
Garcia's office said the ``Emperors Club'' took in more than $1 million from its international business and accepted payments in cash. The ring also used an Internet Web site to advertise its services and included photos with hourly rates. The most high-ranked prostitute's fees started at $5,500 per hour, the complaint said.
Investigators executed three search warrants on locations tied to the club, Garcia's office said. They also seized four bank accounts that investigators said were proceeds of the organization's activities.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service. Joseph Foy, a spokesman for the IRS in New York, declined comment. James Margolin, a spokesman for the FBI in New York, wasn't immediately available for comment.
None of these ladies are less than $1000/hour.
