|

Sifting
the Wreckage for the Real Eliot Spitzer
By Danny Hakim and Michael
Powell
The New York Times
March 23, 2008
The e-mail message was
time-stamped Dec. 18, 2007. It was sent at 5 a.m. It did not mince
words.
"I’ve been up all night, I
haven’t been able to sleep thinking how we’ve gotten to this
position," it began, according to one recipient’s recollection.
The author of the e-mail
message was
Eliot Spitzer, the 54th
governor of New York. His administration was just days from the end
of its first year, and his poll numbers were abysmal. And now the
morning newspapers had another report of another set of subpoenas
issued as part of an investigation into the administration’s effort
to tarnish a Republican rival.
The heat of Mr. Spitzer’s
frustration and anger, according to two senior aides who read the
early morning message, all but radiated off their computers and
BlackBerrys.
Mr. Spitzer ordered a 7:30
a.m. conference call. He canceled plans to attend a forum in the
Bronx on predatory lending in poor neighborhoods, suggesting it was
a waste of time when "everything was falling apart."
One aide recalled the
thrust of Mr. Spitzer’s fury: We’re disasters; I am surrounded by
idiots. Another remembered it this way: Rome is burning, and I’m
supposed to be up in the Bronx talking about predatory lending.
"He was clearly very
upset," one of the aides said. "It was somewhere between the typical
thing and the far end of the typical thing."
Mr. Spitzer announced his
resignation 11 days ago, after reports of something that was
substantially beyond "the far end of the typical thing" — his
involvement as a client of a high-priced prostitution ring.
Interviews in recent days
with a handful of people close to Mr. Spitzer, almost all of them
still shocked and confused, suggested that no one had figured out,
for certain, what had happened. Was Mr. Spitzer’s conduct an
aberrant episode, as short-lived as it was out of character? Or had
the man they had served with passion and devotion been living a
secret second life for years?
"Nothing from my experience
meshes with this, so it’s hard not to feel badly for him," an aide
said. "As torn as we are and confused by it all, he was great to
work for and it’s a loss."
It is hard to say what
role, if any, Mr. Spitzer’s escalating disappointment in Albany
played in his extraordinarily risky, self-destructive behavior, and
it remains unclear when his once seemingly idyllic life went so
awry. But the interviews with his aides and others who encountered
him over the last several months made it clear that he had come to
feel deeply ambivalent about his job as governor, the latest,
grandest political prize in what many calculated would be a rise
that could take him to the White House.
In fact, several aides said
that 14 months into his term, he felt profoundly exasperated with
the experience of trying to bend a powerful and divided State
Legislature to his will.
He just could not accept
the way things worked, or did not work, in Albany, the aides said.
He was offended to the point of distraction by the fact that his
chief rival,
Joseph L. Bruno, the Senate
majority leader, was seen by many to have outmaneuvered and
outwitted him. Mr. Bruno had taken to calling him "a spoiled
rich-kid brat."
And the aides, all of whom
spoke on condition of anonymity out of deference to the wounded Mr.
Spitzer, said the former governor, for all of his estimable
brilliance, was often a poor chief executive: combative,
micromanaging, and unable to take a long view when things went
wrong.
Despite Albany’s often
dysfunctional ways, there were allies to be had, coalitions to be
assembled. But he most often saw them as enemies, all part of a
system that had thwarted reform.
"He was much too angry at
too many people and too many institutions to be effective," recalled
Dan Cantor, executive director of the labor-backed Working Families
Party. "His enemies were against him and his friends were deserting
him."
Fury and moments of
surrender characterized his last nine months, but in truth Mr.
Spitzer was always a politician of the most intense, high-strung
order, whose outbursts were the stuff of legend. But his eruptions
seemed particularly ill suited for the role of executive.
Mr. Spitzer’s unhappiness
generated its own collateral damage. Several aides said Mr. Spitzer
had begun drinking more than his usual nightly glass of scotch. And
his wife, a loyal and reliable support during Mr. Spitzer’s years of
unchecked success, appeared to find the role harder to play when
each month seemed to bring some fresh setback.
But if much of Mr.
Spitzer’s undoing remains hard to fathom, there are, for those who
worked with him or encountered him of late, indelible images of a
man who had seemed so suited to his last job, struggling to find his
way in his new one.
Albany, July 9
The Capitol
Eliot Spitzer sat in his
office on the second floor, on a chair in front of his desk.
He began the interview,
talking with his usual bravura and staccato pace about the ugly
breakdown in budget negotiations — hitting all his talking points,
staying, as only he could, relentlessly on message.
Republicans had been
spreading word that the governor had called Mr. Bruno "senile." They
said he had sent his men to spy on Mr. Bruno, too.
Mr. Spitzer seemed
customarily confident, even defiant.
However, the life in his
voice, like the sunlight late that afternoon, soon began to drain.
It was Day 190 of his
administration — a term that had begun with his promise that
everything that was dysfunctional and hopelessly partisan about
Albany would change with his swearing-in.
But as the conversation
wore on, that promise — that he would bring a kind of constructive
passion back to Albany — began to feel distant, naVve, even lost.
And then he was asked a
question about his wife. He was, in that moment, no longer a
prosecutor trying a case, and the veneer of toughness that he and
his handlers had taken years to build up fell away almost
completely.
There was quiet for several
seconds.
"This, this is harder," he
said, speaking with care about his wife, Silda, "because she looks
at me and she says, ‘Do you really want this stuff? And do you want
this for your kids and do you want them to see this stuff?’ "
He paused again.
The reporter started to
continue. "Just all the ——"
"Yeah," Mr. Spitzer said.
"It’s ugly."
For a second, he flashed
again with enthusiasm, speaking of a run he had taken with one of
his daughters the day before.
"We had a great time," he
said. "I ran with Sarabeth in Utica, and it was spectacular. She
beat me, which was great. But then you pick up the papers and you
see this stuff."
He paused again, looking
nothing short of fragile.
"Well, you know," he said.
"There it is."
His eyes were moist.
Manhattan, Sept. 21
The Grand Hyatt Hotel
The governor’s old allies
had in mind tough love, not an arm-breaking session. Mr. Cantor and
Bob Master, another leader of the Working Families Party, walked
into the lobby of the Grand Hyatt New York.
Governor Spitzer was
holding a morning of political meetings upstairs. The Working
Families Party had endorsed Mr. Spitzer and worked hard for his
election. But in the last eight months he had fought with the party
over his effort to push through a campaign finance bill that would
limit union spending on elections and he had repeatedly insulted the
powerful health care workers’ union and the Democratic-controlled
State Assembly.
Richard Baum, the secretary
to the governor, greeted them in the lobby, three people who were at
the meeting recalled. Mr. Cantor previewed his talk in the elevator:
The governor had to massage his allies; he had to move on issues
like family leave, which played to his political base. And he should
not view the political world as divided between the virtuous and the
venal.
Mr. Baum smiled, warily.
"This should be interesting," one person recalled him saying. The
governor was not used to hearing that sort of criticism.
They took their seats in
the governor’s suite, seven or eight men in a tight cluster. Mr.
Cantor, glancing at his notes, cataloged their discontents. At the
end the governor leaned in, his face less than 12 inches from Mr.
Cantor’s.
And Mr. Spitzer began
screaming.
"You have no standing to
lecture me," he said, expletives punctuating virtually every third
syllable. "You’re part of the system that is the whole problem in
this state."
A year’s worth of perceived
slights poured out, as he recalled old political races gone bad and
proposals that had died in the Legislature. Curse piled upon curse,
spittle flying.
"In the world of politics,
calculated rage is really common," recalled a man who was in the
room. "But this was not calculated; this was pure rage and kind of
scary to watch."
Mr. Spitzer bolted upright
and walked toward the door. He turned, and said: "I’m going to
announce that I’m giving licenses to the undocumented." Mr. Cantor
did a double take. This was worst possible time for a wounded
governor to embark on that initiative, no matter how progressive.
"You’re going to get killed on this," he warned, and in fact it
would become another in the governor’s first-year collection of
failures.
Mr. Spitzer waved him off.
He suffered no deficit of confidence.
"No, no, no!" the governor
said. "It’s all good. All good."
Mr. Spitzer pivoted and
walked out.
Manhattan, March 12
Office of the Governor
Eliot Spitzer had taken
roughly 100 seconds to announce his resignation before a mob of TV
cameras.
He exited the media room
into an office hallway. The corridor was lined with young people —
staff members, secretaries, idealists and overachievers. He could
have easily averted them and walked directly to his office.
But if Mr. Spitzer was
disgraced, he did not shrink from the challenge.
"He was at the far end, and
he made the point of walking down the length of the hallway," said
one aide who was there. "There was a gantlet of people, and he said
what he said.
"I don’t know how you find
the words to talk to a young staff at a moment like that," the aide
noted, "but he did it."
Mr. Spitzer reassured the
young people that their futures were still ahead of them. He warned
against making the same mistakes he had, from the modest to the
catastrophic.
"People think it was hubris
and that he must have been a fraud, but that’s not right," another
aide said of the former governor. "He was a very good man who lost
himself due to a combination of factors.
"He wanted so much to
change things in Albany, but it didn’t work out the way he planned.
He couldn’t meet the expectations of the public or the expectations
he set for himself. They said he was pushing too hard and not
pushing hard enough, that he was Mr. Softee and a steamroller. He
felt damned if he did and damned if he didn’t at every turn."
In such circumstances,
without the ability to adjust or relax, "it’s only a matter of time
before you self-destruct," the aide said. "Ironically, he knew full
well that he was being watched. He even talked about it. He said:
‘If we ever stumble, they’ll be merciless.’ Those were his words."
The walk down the hallway
over, Mr. Spitzer cried, one of the aides said.
"I couldn’t look," the aide
said.
Deciding Whether to Prosecute
Spitzer Poses Sensitive Issues
By Mark Hamblett and Noeleen G. Walder
New York Law Journal
New York Lawyer
March 14, 2008
Ethical constraints on
prosecutorial discretion are rarely scrutinized more than in cases
of political corruption by elected officials of either major party.
Defense attorneys and
former prosecutors said yesterday that U.S. Attorney Michael Garcia
has to tread carefully in deciding whether or not to prosecute Eliot
Spitzer, who has already been driven from the governor's mansion by
revelations that he hired a prostitute through a high-priced escort
service.
Responding to what he said
was "press speculation," Mr. Garcia released a statement shortly
after the governor's announcement that he would resign effective
Monday, saying, "There is no agreement between this Office and
Governor Eliot Spitzer, relating to his resignation or any other
matter."
The "any other matter" is a
reference to negotiations between attorneys for Mr. Spitzer and
prosecutors with Mr. Garcia's Public Corruption Unit, headed by Boyd
Johnson.
The government reportedly
is considering bringing charges against Mr. Spitzer in connection
with his alleged hiring of a prostitute who crossed state lines to
journey from New York to Washington, D.C., for a rendezvous at the
Mayflower Hotel.
One former prosecutor who
preferred anonymity said, "If you are a prosecutor thinking about
this situation you have to ask yourself if it's fair to bring
charges when we don't normally prosecute johns. You always have to
wrestle with the question, 'Am I prosecuting this person because he
or she is a public figure?'"
And that question has
another side, he said.
"What's tough in a
situation like this is to find the appropriate balance. On the one
hand, you don't want to be unfair by prosecuting someone for conduct
the average person wouldn't be prosecuted for, but you also don't
want to create the false impression that someone is getting away
with something because they are a public figure or a celebrity."
George S. Canellos of
Milbank, Tweed, Hadley & McCloy is the former head of the major
crimes unit in the Southern District U.S. Attorney's Office who has
been involved in investigations of high-profile public figures.
He said it is "very
important to be equitable and principled in applying your discretion
to ensure that a public figure is not treated any differently from a
similarly situated person in a case that does not uniquely involve
that person's public position."
Mr. Canellos added, "In my
view, you have to make a prosecutorial decision that is going to
have a general application to a number of potentially similarly
situated targets and subjects."
Charles Stillman of
Stillman & Friedman, said the resignation of Mr. Spitzer changes the
equation for Mr. Garcia significantly, but not entirely.
"So here is the U.S.
attorney's office and the Justice Department distancing itself from
the resignation and kind of announcing, 'We didn't force him out, he
resigned,' and saying, 'We are going to look at this and examine
whether there is a viable criminal justice step to be taken here,'"
Mr. Stillman said. "With Spitzer no longer in office, they are free
to look at him as a private citizen and determine whether private
citizen Spitzer violated the criminal law while in public office."
The sensitivity of the
decision whether to prosecute Mr. Spitzer may be increased by what
some have said is the Bush administration's politicization of the
U.S. Justice Department. Attorney General Michael B. Mukasey, a
former New York federal judge, has pledged that politics would play
no part in prosecutorial decisions.
Mr. Spitzer is represented
by Michele Hirshman of Paul, Weiss, Rifkind, Wharton & Garrison who
has been joined by her fellow partners and white-collar defense
veterans Theodore V. Wells Jr. and Mark F. Pomerantz.
Attorneys for the governor
attended yesterday's news conference at which he read a brief
statement admitting to only "private failings."
Their task, other attorneys
say, is to convince prosecutors that charging Mr. Spitzer would not
just be unlikely to succeed, but would also be unfair. Inevitably,
public perception comes into play, particularly because prosecutors
must be mindful of the deterrent effect of seeking and obtaining a
conviction.
High-Profile Targets?
When media mogul Martha
Stewart was on trial for lying to federal agents probing possible
insider trading violations, her lawyer, Robert G. Morvillo of
Morvillo, Abramowitz, Grand, Iason, Anello & Bohrer, suggested to
the jury that Ms. Stewart was targeted for her high profile. But
prosecutors in the Southern District insisted it was common for the
office to indict non-celebrities for the same offenses.
As to the speculation Mr.
Garcia was referring to in his press release, it was not clear
whether he was referring simply to any connection between the
resignation and a potential prosecution or referring to speculation
in the broader sense - such as in whether Mr. Spitzer may have
exposed himself to criminal liability under the Mann Act, laws that
prohibit structuring of financial transactions to avoid bank
reporting requirements, money laundering or other statutes.
Mark C. Zauderer of
Flemming Zulack Williamson Zauderer, who has represented clients in
cases against then-Attorney General Spitzer - including the fight
over Richard Grasso's pay package at the New York Stock Exchange -
said that based on what has been reported publicly so far, Mr.
Spitzer's "legal situation might not be as drastic" as has been
suggested.
If charges are brought
under the Mann Act or the structuring laws, Mr. Zauderer said, Mr.
Spitzer could assert "very credible defenses," including that he
lacked the intent to evade the reporting requirements needed to
support a conviction for structuring.
Mr. Zauderer said that
prosecutors should refrain from being "overzealous" given the
"significant personal penalty" Mr. Spitzer has paid for his
indiscretions.
Mr. Spitzer's decision to
resign removed one problem for Mr. Garcia, attorneys said, in that
the U.S. attorney can avoid the difficulties inherent in bringing
charges that could result in an elected official being removed from
office.
Former Southern District
U.S. Attorney Mary Jo White was confronted with those problems when
she was assigned the task of investigating whether Democratic New
Jersey Senator Robert Torricelli broke the law in accepting cash and
gifts from David Chang, a wealthy contributor who pleaded guilty in
2000 to charges that included making illegal contributions to a
Torricelli campaign.
But Mr. Chang proved to be
less than an ideal witness and Ms. White announced in 2002 that she
was ending what she called an "exhaustive investigation" without
bringing charges.
The lawyers for Mr.
Torricelli were Mr. Pomerantz and Mr. Wells and they targeted Mr.
Chang as a "pathological liar and admitted perjurer."
Edward J.M. Little is a
Hughes Hubbard & Reed partner who worked in the public corruption
unit in the Southern District for eight years.
"My bottom line is I would
think they would exercise discretion in not bringing" charges
against Mr. Spitzer, Mr. Little said.
Unless new evidence emerges
that government funds were involved, it appears Mr. Spitzer's
conduct did not go toward his governmental duties and it could be
viewed as "overkill" if prosecutors bring charges, Mr. Little added.
Former Southern District
prosecutor Andrew C. McCarthy, now a senior fellow at the Foundation
for Defense of Democracies, said, "This kind of stuff always depends
on what the evidence is."
He added, "If you're
talking about money laundering" and tens of thousands of dollars,
"that's going to cut in the direction of pulling the trigger" and
charging Mr. Spitzer.
"The Southern District
prosecutes a lot of high-profile people and has a lot of
high-profile cases," said Mr. McCarthy, and Mr. Spitzer's prominence
should not "have any impact on the office."
And while prosecutors
usually do not prosecute customers who patronize prostitutes, he
said it "would be highly unusual to walk away" from serious evidence
of money laundering.
Mr. McCarthy also said
there was a question on what kind of weight, if any, to give to the
governor's resignation yesterday.
"If I had been the U.S.
attorney, I would not have used Governor Spitzer's" resignation as a
"private chit," Mr. McCarthy said, nonetheless adding that he would
take a resignation into account as a "mitigating factor" when
deciding whether to bring charges.
"To the extent there's
points to be awarded [for resigning], he gets them," Mr. McCarthy
said.
Omg!
I Just Did the Governor!
Spitz Hooker's Dc Discovery
By Murray Weiss and Lukas
I. Alpert
New York Post
March 14, 2008
March
14, 2008 -- The high-priced hooker at the center of
Gov. Spitzer's sex scandal trysted with him several times before
he was caught on a wiretap - but it was only during their last
encounter that she realized the real identity of her john, sources
said yesterday.
CLICK FOR EXCLUSIVE
PHOTOS OF 'KRISTEN'
* PHOTOS: Ashley And
Her Family
* PHOTOS: Ashley Dupre
"Oh, my God! Do you know
who this guy is?" a shocked Ashley Alexandra Dupre asked her bosses
at the Emperors Club VIP escort service, a source said.
The comment came after her
$4,300 meeting with Spitzer at a Washington hotel on Feb. 13.
'KRISTEN'S
VIDEOS'
WATCH Behind the
Scenes Shots From Dupre's Video
WATCH the music video
in its entirety.
The 22-year-old call girl
had several dates with the governor over the past year, the sources
said, but always knew him as "George Fox" - the name of one of
Spitzer's close friends that he used to hide his identity.
But just before Dupre -
whom Spitzer knew as "Kristen" - had her startling revelation,
federal authorities caught the governor on tape giving them enough
evidence to take down the sex ring, paving the way for his
embarrassing resignation.
Meanwhile, as the
Democratic governor prepared to slink out of office on Monday with
his tail between his legs, sordid details of Dupre's decline into
prostitution emerged.
* Gov's Hooker Can Bare All
* She's Just A 'Babe'
* PEYSER: Boo-ho! Don't Shed Any Tears For
This Busty Brat
Sources say Dupre got
involved with the Emperors Club as early as 2006 after responding to
an ad from the agency seeking girls to "party" with deep-pocketed
men.
After meeting with her, the
escort service's operators liked what they saw. She took to the job
quickly.
"Like all of them,
she wanted to hang out with guys with money," a source said.
After moving to New York to
pursue a music career in 2004, Dupre worked as a cocktail waitress,
hostess and bartender at New York hot spots like Viscaya, Pink
Elephant and Retox. She partied with club promoters and bragged
about hobnobbing with hip-hoppers like Sean "Diddy" Combs.
"She's been hanging around
the night-life scene for a few years," said one well-connected club
source. "She's definitely a party girl. She was out four, five
nights a week and was a staple. She danced on tables and had fun."
MORE: Paterson: Easy On Eliot
MORE: Troopers Probed In Spitz Tryst
MORE: How's Dirty Tricks? Not Over Yet: Panel
Few knew she was financing
her high-octane lifestyle through the oldest profession on earth.
"Nobody knew she was a
prostitute," the club source said. "Everyone assumes it goes on, but
you never know which girls are involved. Now it makes sense where
her Cartier watch, her Louis Vuitton bathing suit and her trips to
St.-Tropez came from."
Dupre continued her pursuit
of a music career and in early 2007 had a photographer friend shoot
glamour photos of her to use in her portfolio.
Shot in a Manhattan studio,
the pictures show a smoky-eyed Dupre, sporting tattoos in both Latin
and Arabic. Some of them read: "What does not destroy me makes me
stronger," "Protect your own," and "Never give up."
On her MySpace page - where
she admitted, "Yeah, I did it," after word of her involvement with
Spitzer emerged - Dupre described struggling with drugs. Sources
said the tattoos were mantras to help keep her clean.
Born Ashley Youmans, Dupre
grew up in Seaside Heights and Wall Township by the Jersey Shore.
She also mentioned being abused while growing up, saying it forced
her to run away - a claim one family friend called ridiculous.
"She crashed up [her
stepdad's] Porsche and wanted another one, and he wouldn't give it
to her, so she left," said the friend, who asked her name not be
printed.
Additional
reporting by Corynne Steindler, Erin Calabrese, Bill Hoffmann,
Austin Fenner and Carolyn Salazar
On Trips,
Eliot Spitzer Mixed Business
with High-Priced Prostitute Pleasure
By James Gordon Meek, Brian
Kates and Greg B. Smith
New York Daily News
March 13, 2008
When disgraced
Gov. Spitzer arranged hookups with high-priced prostitutes at
out-of-state hotels, he would always have another reason to make the
trip.
Sometimes it was a campaign
fund-raiser, sometimes a speech to a political group, sometimes
official business like testifying before Congress, according to
sources close to the probe, court papers and state records.
The trips raise questions
about whether Spitzer used tax money to fund illegal activity or
violated laws that prohibit politicians from using campaign funds
for personal expenses.
One city where
investigators say Spitzer enjoyed a rendezvous with a hooker was
Dallas, law enforcement sources said Wednesday.
The source would not say
exactly when, but a review of Spitzer's campaign finance records
reveal he held a fund-raiser at Dallas' elegant Hotel Crescent Court
last October.
About 60 people attended,
according to
Jess Hay, the retired CEO of Lomas Financial Corp., who
contributed $1,000 to Spitzer. Hay was surprised to learn about
Spitzer's alleged trysts in Dallas.
"I am saddened," he said,
calling the scandal "a betrayal of the principles he articulated
during his career."
Sources also said Spitzer
had multiple liaisons with prostitutes in
Washington.
FBI agents in Washington
put him under surveillance in late January at the
Mayflower Hotel but didn't catch him in action.
Spitzer's state credit card
records show he's made four visits to the Mayflower: in October,
again in November, a third on Feb. 6, and then the now infamous stay
on Feb. 13 when he met up with a prostitute. He billed taxpayers for
a total of $1,546.
Spitzer's lawyers are
trying to work out a deal that minimizes his exposure to charges and
punishment. He could be charged in federal court with concealing his
identity in suspicious money transfers and in Washington with
soliciting a prostitute.
A source said the
Justice Department is not close to charging Spitzer.
Spitzer
Resigns in Sex Scandal and
Turns His Attention to Healing His Family
By David Kocieniewski and
Danny Hakim
The New York Times
March 13, 2008
Gov.
Eliot Spitzer, whose rise to political power as a fierce
enforcer of ethics in public life was undone by revelations of his
own involvement with prostitutes, resigned on Wednesday, becoming
the first New York governor to leave office amid scandal in nearly
a century.The
resignation will be effective on Monday at noon. Lt. Gov.
David A. Paterson, a state
Tyler Hicks/The New York Times
legislator for 22
years and the heir to a Harlem
Eliot Spitzer, with his wife, Silda
political
dynasty, will be sworn in as New
announcing his resignation at his
York’s 55th governor, making
him the state’s Manhattan office on
Wednesday
first black chief executive.
Mr. Spitzer announced he
was stepping down at a grim appearance at his Midtown Manhattan
office, less than 48 hours after it emerged that he had been
intercepted on a federal wiretap confirming plans to meet a call
girl from a high-priced prostitution service in Washington,
leaving the public stunned and angered and bringing business in
the State Capitol to a halt.
With his wife,
Silda Wall Spitzer, at his side, Mr. Spitzer, a Democrat, said
he would leave political life to concentrate on healing himself
and his family.
“Over the course of my
public life, I have insisted — I believe correctly — that people
regardless of their position or power take responsibility for
their conduct,” he said. “I can and will ask no less of myself.
For this reason, I am resigning from the office of governor.”
Mr. Spitzer, 48, spoke in
a somber but steady voice, softening his usual barking tone. He
took no questions. His wife, in a dark suit and a brightly colored
scarf, looked off to the side, occasionally glancing up to reveal
deep circles beneath her eyes.
Though he came into
office last January with a sweeping electoral mandate for change,
Mr. Spitzer’s time as governor was marked by fierce combat and
costly stumbles. He faced a scandal last year after members of his
staff used the State Police to disseminate damaging information
about his chief Republican rival,
Joseph L. Bruno, the leader of the State Senate.
Since Monday, Mr. Spitzer
has been consumed with crisis, trying to salvage his marriage and
his career and avoid federal charges stemming from the case.
A man defined by ambition
and relentlessness, Mr. Spitzer appeared to struggle with the
decision to relinquish power. On Tuesday afternoon, Mr. Spitzer
instructed his staff to contact the office of
Sheldon Silver, the speaker of the Assembly and a fellow
Democrat, to see if an impeachment vote could be avoided.
But it was clear during
the discussions that it was hopeless, with many Democrats prepared
to abandon him.
During his remarks, which
lasted less than three minutes, Mr. Spitzer did not address the
pending criminal investigation, and it remained unclear what legal
issues, if any, Mr. Spitzer will face.
The United States
attorney investigating the case issued a statement shortly after
the resignation saying that his office does not have any
arrangement with the governor.
In Albany, some of Mr.
Spitzer’s staff members were clearing out their desks as Mr.
Paterson and his top aides prepared to move into the executive
offices. Charles O’Byrne, a longtime assistant to Mr. Paterson, is
replacing Richard Baum as the governor’s top aide. Most other top
Spitzer loyalists were expected to depart.
Mr. Spitzer’s resignation
was accompanied by relief, shock and a sense of the surreal.
Legislative leaders from both parties voiced condolences to Mr.
Spitzer’s wife and three daughters and welcomed Mr. Paterson.
Mr. Bruno, who had once
called Mr. Spitzer “a spoiled brat,” shunned fiery language on
Wednesday.
He said he hoped Mr.
Spitzer’s ignominious fall would force lawmakers to focus more
intently on addressing the state’s financial crisis, and he
declined to say how Mr. Spitzer’s departure might affect the fight
for control of the State Senate this year.
“I’m going to leave it to
the governor and his family to sort out how they deal with present
circumstances and the future,” Mr. Bruno said at a morning news
conference. “And frankly, I have them in my prayers.”
Many Democrats on the
floor of the Assembly seemed almost jovial in the hours after Mr.
Spitzer resigned. Some admitted privately that they were happy
that the contentious and sometimes scolding governor was being
replaced by Mr. Paterson, a likable lawmaker comfortable with the
customs of Albany. Mr. Paterson will have to adjust quickly: The
deadline for passing next year’s budget is March 31.
Mr. Spitzer had never
seemed completely at ease in the hallways of the Capitol, and as
this week’s crisis engulfed him, few in the state’s political
establishment came forward to offer support. And since Monday, the
governor had disappeared from public view, retreating to his Fifth
Avenue apartment for what associates described as agonizing
deliberations with his wife, lawyers and a handful of close
friends.
The son of a wealthy real
estate investor, Mr. Spitzer was educated at
Princeton University and Harvard Law School and worked as a
prosecutor in the Manhattan district attorney’s office before
being elected New York’s attorney general in 1998.
It was there that Mr.
Spitzer built a reputation as a prosecutorial avenger, bringing
some of Wall Street’s biggest names to heel and pressuring banks,
insurance companies and brokerage houses to pay defrauded
investors huge settlements and to adopt tighter regulations.
The audacity of Mr.
Spitzer’s vision and his combative style made him a reviled figure
on Wall Street. But to millions of Americans who felt swindled in
an age when executive salaries and the income gap between rich and
middle class were rapidly growing, Mr. Spitzer was viewed as a
guardian against corporate excess.
He was so successful at
using the relatively limited office of the state attorney general
to redress the regulatory failures of the federal Securities and
Exchange Commission that he was swept into the governor’s office
in a landslide. Some of Mr. Spitzer’s admirers mused that he might
one day be the first Jewish president.
And as he stepped to the
podium shortly after 11:30 a.m. on Wednesday, some Wall Street
traders watched gleefully as his career came to an abrupt end.
Elsewhere, Mr. Spitzer’s
departure stirred other emotions. Susan B. A. Samuel of South
Ozone Park, Queens, said she was proud that New York would have
its first black governor.
“I’m very proud to say
that he’s a brother,” said Ms. Samuel, who is black. “I’m very
excited. It is kind of a sweet sorrow.”
Mr. Paterson, who asked
Mr. Spitzer to delay his departure until Monday so he could be
sworn in before a joint session of the Legislature, issued a brief
statement offering condolences to the Spitzers and promising to
quickly turn his attention to governing.
“It is now time for
Albany to get back to work as the people of this state expect from
us,” Mr. Paterson said.
Mr. Spitzer becomes the
first New York governor to resign since 1973, when
Nelson A. Rockefeller stepped down to devote himself to a
policy group, and the first to be forced out since William Sulzer
was impeached in 1913 over a campaign contribution fraud.
On Wednesday, Mr. Spitzer
ended his remarks by pledging to return to public service outside
the political realm, after a period of atonement with his family.
He invoked a common
aphorism to make a final nod toward the enduring American belief
in the possibility of redemption. “As human beings,” he said, “our
greatest glory consists not in never falling, but in rising every
time we fall.”
Foes of
Sex Trade Are Stung by the Fall of an Ally
By Nina Bernstein
New York Times
March 12, 2008
As New York’s attorney
general,
Eliot Spitzer had broken up prostitution rings before, but
this 2004 case took on a special urgency for him. Prosecuting an
international sex tourism business based in Queens, he listened to
the entreaties of women’s advocates long frustrated by state laws
that fell short of dealing with a sex trade expanding rapidly
across borders.
And with his typical
zeal, he embraced their push for new legislation, including a
novel idea at its heart: Go after the men who seek out
prostitutes.
It was a question of
supply and demand, they all agreed. And one effective way to
suppress the demand was to raise the penalties for patronizing a
prostitute. In his first months as governor last year, Mr. Spitzer
signed the bill into law.
Now the human rights
groups, which credit him with what they call the toughest and most
comprehensive anti-sex-trade law in the nation, are in shock. Mr.
Spitzer stands accused of being one of the very men his law was
designed to catch and punish.
“It leaves those of us
who worked with his office absolutely feeling betrayed,” said
Dorchen Leidholdt, director of Sanctuary for Families Legal
Services, one of the leaders of the coalition that drafted the
legislation.
The law, which went into
effect Nov. 1, mainly deals with redefining and prosecuting forms
of human trafficking, which Governor Spitzer called “modern-day
slavery.” It offers help to the women who are victims of the
practice, rather than treating them as participants in crime.
But it also lays the
groundwork for a more aggressive crackdown on demand, by
increasing the penalty for patronizing a prostitute, a
misdemeanor, to up to a year in jail, from a maximum of three
months.
That was a key shift in
approach for
New York State, and one the governor and his top aides seemed
to support wholeheartedly, said Ken Franzblau, now director of the
law’s implementation at the State Division of Criminal Justice
Services. Generally, the law and its enforcers focus on pimps and
prostitutes, and treat customers as an afterthought.
“If you eliminate the
demand, you eliminate the problem,” said Mr. Franzblau, who worked
for years with Equality Now, a women’s advocacy and human rights
group that had long urged prosecution of the Queens sex tourism
business operating as Big Apple Oriental Tours.
“In fact, the demand is
really the lower-hanging fruit,” he added. “The johns are really
afraid of being caught. The idea is that if we get some real
penalties, and get D.A.’s to insist on them, we really could
create a deterrent to this.”
For Equality Now, and a
core of high-profile supporters that included
Gloria Steinem and Representative
Carolyn B. Maloney, the Big Apple Oriental Tours case was a
frustrated seven-year campaign for prosecution that became a
turning point. Even after Mr. Franzblau posed as a would-be
customer, gathering what was described as “smoking-gun evidence,”
the Queens district attorney,
Richard A. Brown, declined to prosecute.
Mr. Brown maintained that
under state law he had no legal jurisdiction over acts of
prostitution that took place in Thailand and in the Philippines,
even if those acts were being promoted by a travel business
operated in New York.
Mr. Spitzer disagreed.
Newly re-elected as attorney general, he began an investigation,
slapped the business with a civil action that shut down its Web
site, and in February 2004, won a grand jury indictment of the two
operators in Dutchess County, where they lived. He proclaimed it
the first criminal charge against a sex tourism business based in
the United States.
But the case stalled, and
despite another indictment in 2005, it has yet to reach trial.
Efforts to clarify and
overhaul New York’s penal code on prostitution and human
trafficking seemed stuck in legislative gridlock.
“We had tremendous
difficulty trying to get this law passed, year after year,” said
Taina Bien-Aimé, executive director of Equality Now. “Our only
hope was for Eliot Spitzer to be elected governor.”
“He understood,” she
added. “He got it, unlike hundreds of other politicians and law
enforcement officials that we talked to.”
She and Ms. Leidholdt
said the governor put his muscle behind the legislation, detailing
top aides to work with sponsors of piecemeal bills that had
languished, to consult with a coalition of human rights and
women’s groups, and to lobby labor unions whose support was won
through provisions addressing the trafficking and exploitation of
workers.
Peter Pope, one of Mr.
Spitzer’s point people on the bill, declined to comment through
the governor’s press secretary, Errol Cockfield.
The law explicitly made
sex tourism and its promotion a crime, resolving the
jurisdictional debate that had mired the Big Apple prosecution for
so long. But more important, Ms. Bien-Aimé said, it demonstrated a
comprehensive approach to the larger issues.
“One of the goals of the
human trafficking law was the acknowledgment that demand is a
critical factor in sex trafficking,” she said. “And as a result of
that, it increased the penalties for patronizing a prostitute
across the board, whether or not the person is trafficked.”
Too often, Ms. Bien-Aimé
maintained, the public imagines a huge divide between the kind of
glamorous call girl depicted in a movie like “Pretty Woman,” and
the lurid, violent world of trafficked women in a film like
“Eastern Promises.” But they are all part of a commercial sex
industry that buys women’s bodies, she said, citing studies that
put the average age of entry into prostitution in the United
States at 14.
“There’s no sliding scale
in the exploitation of women,” she said. “Either you exploit a
woman in the commercial sex trade or you don’t.”
Because Mr. Spitzer
seemed to agree, she said, “he was our hero.”
Spitzer a
Repeat Customer, Investigators Say
N.Y. Governor May Have Spent $80,000
Faces GOP Impeachment Threat
Associated Press
March 11, 2008
ALBANY, N.Y. - With
pressure mounting on Gov. Eliot Spitzer to resign over a call-girl
scandal, investigators said Tuesday he was clearly a repeat customer
who spent tens of thousands of dollars — perhaps as much as $80,000
— with the high-priced prostitution service over an extended period
of time.
Spitzer and his family,
meanwhile, remained secluded in their Fifth Avenue apartment, while
Republicans began talking impeachment, and few if any fellow
Democrats came forward to defend him. A death watch of sorts began
at the state Capitol, where whispers of "What have you heard?"
echoed through nearly every hallway of the ornate, 109-year-old
building.
On Monday, when the scandal
broke, prosecutors said in court papers that Spitzer had been caught
on a wiretap spending $4,300 with the Emperors Club VIP call-girl
service, with some of the money going toward a night with a
prostitute named Kristen, and the rest to be used as credit toward
future trysts. The papers also suggested that Spitzer had done this
before.
Speaking on condition of
anonymity, a law enforcement official said Tuesday that Spitzer, in
fact, had spent tens of thousands of dollars with the Emperors Club.
Another official said the amount could be as high as $80,000. But it
was not clear over what period of time that was spent.
Still another law
enforcement official said investigators found that during the tryst
with Kristen on the night before Valentine's Day, Spitzer used two
rooms at the Mayflower Hotel in Washington — one for himself, the
other for the prostitute. Sometime around 10 p.m., Spitzer sneaked
away from his security detail and made his way to the room where she
was waiting, the official said. The three officials spoke on
condition of anonymity because of the sensitivity of the case.
Details in court papers
In the court
papers, an Emperors Club employee was quoted as telling Kristen that
Client 9 — Spitzer, according to investigators — "would ask you to
do things that ... you might not think were safe," and Kristen
responded by saying: "I have a way of dealing with that. ... I'd be,
like, listen, dude, you really want the sex?"
A law enforcement official
said Tuesday the discussion had to do with Spitzer's preference not
to wear a condom and the call-girl's insistence that he use one.
Spitzer's vast personal
wealth would have made it easy for him to spend thousands of dollars
on prostitutes. The scion of a wealthy Manhattan real estate
developer, Spitzer reported $1.9 million in income to the IRS in
2006.
Meanwhile, Albany insiders
on Tuesday said the governor was still trying to decide how to
proceed. Options included quitting immediately, or waiting to use
resignation as a bargaining chip with federal prosecutors to avoid
indictment.
Democrats privately floated
another option, telling The Associated Press that Spitzer was
considering what was almost unthinkable immediately after Monday's
bombshell apology: hanging on.
"If the public is fine,
he'll stay," said a Democrat who spoke on condition of anonymity
because of the sensitivity of the subject.
Still, Spitzer's many enemies from Albany and Wall Street were
emboldened, and some of his friends went from shock to outrage.
"Particularly because of the reform platform on which he was elected
governor, his ability to govern the state of New York and execute
his duties as governor have been irreparably damaged," said Citizens
Union, a good-government group that supported the crusading attorney
general for governor in 2006 and provided critical support in his
effort to reform Albany. "It is our strong belief that it is now
impossible for him to fulfill his responsibilities as governor.
Accordingly, Citizens Union urges him to resign as governor."
Revelations Began in Routine Tax Inquiry
By William K. Rashbaum
New York Times
March 11, 2008
The rendezvous that
established Gov.
Eliot Spitzer’s involvement
with high-priced prostitutes occurred last month in one of
Washington’s grandest hotels, but the criminal investigation that
discovered the tryst began last year in a nondescript office
building opposite a Dunkin’ Donuts on Long Island, according to law
enforcement officials.
There, in the Hauppauge
offices of the
Internal Revenue Service,
investigators conducting a routine examination of suspicious
financial transactions reported to them by banks found several
unusual movements of cash involving the governor of New York,
several officials said.
The investigators working
out of the three-story office building, which faces Veterans
Highway, typically review such reports, the officials said. But this
was not typical: transactions by a governor who appeared to be
trying to conceal the source, destination or purpose of the movement
of thousands of dollars in cash, said the officials, who spoke on
condition of anonymity.
The money ended up in the
bank accounts of what appeared to be shell companies, corporations
that essentially had no real business.
The transactions, officials
said, suggested possible financial crimes — maybe bribery, political
corruption, or something inappropriate involving campaign finance.
Prostitution, they said, was the furthest thing from the minds of
the investigators.
Soon, the I.R.S. agents,
from the agency’s Criminal Investigation Division, were working with
F.B.I. agents and federal
prosecutors from Manhattan who specialize in political corruption.
The inquiry, like many such
investigations, was a delicate one. Because the focus was a
high-ranking government official, prosecutors were required to seek
the approval of the United States attorney general to proceed. Once
they secured that permission, the investigation moved forward.
At the outset, one official
said, it seemed like a bread-and-butter inquiry into political
corruption, the kind of case the F.B.I. squad, known internally by
the designation C14, frequently pursues.
But before long, the
investigators learned that the money was being moved to pay for sex
and that the transactions were being manipulated to conceal Mr.
Spitzer’s connection to payments for meetings with prostitutes, the
official said.
Then, with the assistance
of a confidential informant, a young woman who had worked previously
as a prostitute for the Emperor’s Club V.I.P., the escort service
that Mr. Spitzer was believed to be using, the investigators were
able to get a judge to approve wiretaps on the cellphones of some of
those suspected of involvement in the escort service.
The wiretaps, along with
the records of bank accounts held in the names of the shell
companies, revealed a world of prostitutes catering to wealthy men.
At the center was the Emperor’s Club, which arranged "dates" with
more than 50 beautiful young women in New York, Paris, London, Miami
and Washington.
But its finances moved
through the shell companies — the QAT Consulting Group, QAT
International and Protech Consulting — which held bank accounts into
which clients wired their payments, according to court papers in the
case.
One of the booking agents,
a woman named Temeka Rachelle Lewis, 32, told a client that wiring
his payments to QAT Consulting was safe because it would show up
"like as a business transaction," according to an affidavit filed in
federal court the case.
But the transactions proved
to be anything but safe for Mr. Spitzer, who, aides said on Monday,
was weighing possible resignation.
Last week, Ms. Lewis was
one of four people charged by federal prosecutors in Manhattan with
operating the prostitution ring. Also arrested were Mark Brener, 62,
who is accused of heading the operation; Cecil Suwal, 23, who is
said to have managed it day to day; and Tanya Hollander, 36, who
worked part time as a booker.
The affidavit, which was
unsealed on Thursday when the four were arrested, details the
secretly recorded conversations that officials said captured Mr.
Spitzer’s efforts to arrange a Washington meeting with a prostitute
on Feb. 13. It also describes the young woman’s report to the
booking agent on her encounter with the governor, shortly after it
was concluded.
The affidavit does not name
the governor, nor does it name any of the other 10 men described as
having purchased sex through the operation. Instead, it refers to
them by number, with Mr. Spitzer, according to two law enforcement
officials, listed as Client 9.
Mr. Spitzer’s cited
rendezvous with the prostitute on Feb. 13 occupies five pages of the
47-page affidavit. The document recounts parts of a half-dozen
conversations Client 9 had with Ms. Lewis, the booking agent, in the
roughly 24 hours leading up to his meeting with the prostitute at
the Mayflower Hotel.
They discussed whether his
deposit would cover the young woman’s travel expenses, whether his
payment had arrived — apparently by mail or overnight courier — and
how she would be admitted to the hotel room he had reserved in
Washington. At one point, when the booker tells him it will be a
woman who went by the name Kristen, Client 9 said, "Great, O.K.,
wonderful," according to the affidavit.
During the last
conversation, he asked Ms. Lewis to remind him what Kristen looked
like.
The conversations,
according to the affidavit, were among more than 5,000 telephone
calls and text messages that the federal authorities intercepted
during the course of the investigation into the prostitution ring,
which began last October. Investigators also seized more than 6,000
e-mail messages, bank records, and travel and hotel records, and
conducted physical surveillance.
Almost lost in the tumult
of the governor’s statement and the possibility of his resignation
were the original allegations against the defendants said to have
operated the ring.
Two of them, Mr. Brener and
Ms. Suwal, are still held at the Metropolitan Correctional Center in
Lower Manhattan, and on Monday their lawyers were still focused on
their clients’ problems, not Mr. Spitzer’s.
Mr. Brener’s lawyer,
Jennifer L. Brown, said her client "is anxious to have his day in
court for a full airing of these charges and he’s looking forward to
defending himself."
Daniel S. Parker, a lawyer
for Ms. Suwal, recalled that his client had, as all the defendants,
entered a plea of not guilty at her arraignment on Thursday. He said
Monday that she was entitled to the presumption of innocence.
"What the governor chooses
to state or admit to is the governor’s business," he said.
GOP
Lawmakers Threaten to Impeach Spitzer
N.Y. Governor Faces Resignation Calls;
Cops Say Cash Payments Led to Probe
MSNBC staff and news
service reports
March 11, 2008
NEW YORK - As Gov. Eliot
Spitzer faced mounting calls to resign, Republican legislators
indicated they will seek to impeach him if he doesn't quit within 48
hours, a spokesman for a leading New York assemblyman said Tuesday.
"The governor has 48 hours
to resign or articles of impeachment would be introduced," Josh
Fitzpatrick, spokesman for Assembly Republican Minority Leader James
Tedisco, told Reuters.
Online editions of the New
York Times and Wall Street Journal reported that Spitzer's top aides
expected the governor to resign, although the timing remained
uncertain.
Aides close to Spitzer, 48,
expect Lt. Gov. David Paterson, 53, a Harlem Democrat, will succeed
him as governor before the week's end to fill out the remaining 33
months of his term.
The governor first
came under suspicion because of cash payments from several bank
accounts to an account operated by a call-girl ring, according to a
law enforcement official.
Spitzer was the initial target of the investigation and was tracked
using court-ordered wiretaps that appear to have recorded him
arranging for a prostitute to meet him at a Washington hotel in
mid-February, the official said.
The official spoke to The Associated Press on condition of anonymity
because of the sensitivity of the investigation.
The scandal surrounding the man who built his political reputation
on rooting out corruption stunned the state. Calls for Spitzer's
resignation began immediately and intensified Tuesday with the New
York Daily News, New York Post and Newsday all demanding that he
step down.
"Hit the road, John ... and make it quick!" read the headline of the
Daily News editorial, while the Post called him "NY's naked
emperor."
Spitzer retreated from
public view Monday afternoon, when he appeared glassy-eyed with his
shellshocked wife, Silda, at his side and apologized to his family
and the public. He did not directly acknowledge any involvement with
the prostitute.
"I have acted in a way that
violates my obligations to my family and violates my — or any —
sense of right and wrong," he said. "I apologize to the public, whom
I promised better."
Crossing state lines
Spitzer allegedly paid for the call girl to take a train from New
York to Washington — a move that opened the transaction up to
federal prosecution because she crossed state lines.
The governor has not been
charged, and prosecutors would not comment on the case Monday. A
spokesman for Spitzer said the governor has retained a large
Manhattan law firm.
There was no word on
Spitzer's plans, but Assembly Republican leader James Tedisco said
he received a call Monday from Paterson, who would assume the
governor's office if Spitzer resigned.
Tedisco said Paterson
raised the possibility of such a scenario by asking if Tedisco, who
has been at odds with Spitzer, would be willing to start fresh with
him.
"He called me to ask if we
would give him the benefit of the doubt, and go forward," Tedisco
said. "I told him we would."
Spitzer was to be in New
York City on Tuesday, but had no public events scheduled.
At a Manhattan news conference Spitzer apologized to his
family and the people of New York.
"I have acted in a
way that violates my obligations to my family and violates my — or
any — sense of right and wrong," he said. "I apologize to the
public, whom I promised better."
He did not say what he was
apologizing for and ignored reporters' shouted questions about
whether he would resign — 14 months after he boldly proclaimed at
the start of his term, "Day One, Everything Changes."
Republicans immediately
called for him to quit.
"He has to step down. No
one will stand with him," said Rep. Peter King, a Republican from
Long Island. "I never try to take advantage or gloat over a personal
tragedy. However, this is different. This is a guy who is so
self-righteous, and so unforgiving."
Spitzer was elected with a
historic margin of victory, and took office Jan. 1, 2007, vowing to
stamp out corruption in New York government in the same way that he
took on Wall Street executives while state attorney general.
In his previous position,
Spitzer uncovered crooked practices and self-dealing in the stock
brokerage and insurance industries and in corporate board rooms; he
went after former New York Stock Exchange chairman Richard Grasso
over his $187.5 million compensation package.
Spitzer become known as the
"Sheriff of Wall Street." Time magazine named him "Crusader of the
Year," and the tabloids proclaimed him "Eliot Ness." The
square-jawed graduate of Princeton University and Harvard Law was
sometimes mentioned as a potential candidate for president.
But he apparently became
embroiled last year in a financial probe by the Internal Revenue
Service into a high-end prostitution ring. The investigation into
the Emperors Club VIP gathered more than 5,000 telephone calls and
text messages and more than 6,000 e-mails, along with bank records,
travel and hotel records and surveillance.
It was unclear whether
Spitzer was a target from the start or whether agents came across
his name by accident while amassing evidence.
In an affidavit filed in
Manhattan federal court last week, Spitzer appeared as "Client 9,"
according to the law enforcement official. Client 9 personally made
several cell phone calls to Emperors Club VIP to arrange a Feb. 13
tryst at a Washington hotel, the official said.
Client 9 wanted a
high-priced prostitute named Kristen to come to Washington on a 5:39
p.m. train from Manhattan. The door to the hotel room would be left
ajar. Train tickets, cab fare, room service, and the minibar were
all on him.
"Yup, same as in the past.
No question about it," the caller told Kristen's boss, when asked if
he would make his payment to the same business as usual, a federal
affidavit said. The client paid $4,300 to Kristen, touted by the
escort service as a "petite, pretty brunette," according to court
papers.
Criminal charges unlikely
Carl Tobias, a law professor at the University of Richmond, noted
that prostitution customers are often not charged with a crime.
Other analysts said
Spitzer's lawyers might be negotiating with prosecutors to drop any
charges in exchange for a resignation.
"Especially if he resigns,
he may just be left alone," Tobias said. "It may be that the public
is satisfied by his resignation as governor."
Spitzer's term as governor
has been fraught with problems, including an unpopular plan to grant
driver's licenses to illegal immigrants and a plot by his aides to
smear his main Republican nemesis.
It would not be the first
time that a high-profile politician became ensnared in a
prostitution scandal. Sen. David Vitter of Louisiana acknowledged in
July that his Washington phone number was among those called several
years ago by an escort service.
Scandals also recently
derailed neighboring Connecticut Gov. John Rowland and New Jersey's
Jim McGreevey. And Sen. Larry Craig of Idaho pleaded guilty to
disorderly conduct after being arrested last June in a Minneapolis
airport restroom.
Spitzer's cases as attorney
general included a few criminal prosecutions of prostitution rings
and tourism involving prostitutes. In 2004, he took part in an
investigation of an escort service in New York City that resulted in
the arrest of 18 people on charges of promoting prostitution and
related charges.
Spitzer
Shares Arrogance of Other Powerful Men
In Fall Worthy of Shakespeare, Gang-Busting Governor Entrapped in
Sex Scandal
By
Susan Donaldson James
ABC News
March 11, 2008

New York Gov. Eliot Spitzer, right, arrives for a
church service in Albany, N.Y., with his family in this Jan. 1, 2007
file photo. The New York Times is reporting Monday, March 10, 2008
that Gov. Eliot Spitzer has told senior advisers that he had been
involved in a prostitution ring. From left are, Spitzer's daughter,
Jenna; wife, Silda Wall Spitzer; and daughters, Elyssa; and Sarabeth.
(Tim Roske/AP Photo)
New York Gov. Eliot Spitzer
built his career on the moral high ground, but faces a fall suffered
by Greek gods and Shakespearean characters through his own hubris or
exaggerated sense of self-pride.
That scenario, say
psychologists, is as old as time: Men who seemingly have it all but
tempt fate to risk everything -- family, reputation and even power.
Spitzer -- who during eight
years as an aggressive attorney general was compared to Eliot Ness,
the legendary FBI man who brought down Al Capone -- is now allegedly
Client 9 in a federal investigation of an upscale prostitution ring.
Powerful men who fall from
the pinnacle of their careers have much in common, according to
experts consulted by ABC News.
"It's a blind spot more
than risk," said Mark L. Held, a Denver-area psychologist who
specializes in overachievers. "They have a certain arrogance who
think they can get away with it."
"They have a tragic
Shakespearean character flaw," he said. "The person with everything,
who should be the last person to risk it, does. Their power of
success has gone to their head."
How the Mighty Fall
The fallen power brokers
often leave a trail of angry, disappointed loved ones and supporters
in their wake.
For Dina Matos McGreevey,
whose husband left the New Jersey governorship in shame and a
marriage in shambles after admitting an affair with a gay aide, the
Spitzer news has unearthed old feelings of "crushing pain."
"They both had such
promising careers," McGreevey told ABCNEWS.com. "They worked all
their lives to achieve that goal, and then he made a decision that
not only effects them, but their family. The wife and children are
the victims."
Powerful men who risk their
marriages with dalliances are "arrogant enough they believe they are
beyond reproach," acccording to McGreevey, who said the emotional
blow is like "death without a corpse."
U.S. political history is
strewn with the wreckage of sexual scandals. For many years,
mainstream journalists had a gentleman's agreement not to write or
air stories about the private lives of politicians. That all changed
with Vietnam and the Watergate scandal.
By 1976, Rep. Wilbur Mills,
R-Ark., couldn't run for re-election after he cavorted nude in Tidal
Basin with stripper Fanny Fox. Last year, Sen. David Vitter, R-La.,
admitted using the services of the D.C. Madam, a high-priced call
girl ring operated in the district.
Presidents -- from Franklin
Delano Roosevelt to John F. Kennedy to Bill Clinton -- have earned
reputations as serial cheaters. Psychologists say the very nature of
their power invites self-destruction.
Spitzer's image as a
corruption fighter was polished fighting white-collar crime and
prostitution rings. He hunted down Wall Street wrongdoers with a
chastising tone of moral rectitude. "Listen, I'm a steamroller," he
said in his first days as governor.
But his suit of armor is
now tarnished, and many say his personal behavior has been reckless.
The day before Valentine's
Day, Spitzer allegedly made a series of calls to arrange for a
prostitute to come to his Washington hotel room, telling her that
the door to his room would be left open, according to federal court
papers.
The documents suggest, but
by no means verify, that he -- or someone who was known as client
No. 9 -- may have asked prostitutes to engage in unprotected sex.
"The very drive that works
for them to achieve and accomplish and be successful involves taking
a certain risk or living in the fast lane in order to get ahead,"
said New Jersey psychologist Stanley Teitelbaum, who has written a
book about fallen idols.
"That same quality leaves
them driving in the wrong lane."
Spitzer, 48, was raised in
the affluent Riverdale section of New York City and attended Horace
Mann School, one of the most competitive private schools in the
country and where his three daughters now go.
He went on to Princeton
University, where he graduated in 1981. After receiving a perfect
score on the law school entrance exam, he attended Harvard Law
School.
The brainy, but coddled
Spitzer met his wife, Silda Wall, in law school, and according to a
profile in the Harvard University alumni magazine, 02138, they had a
model marriage.
Their Set of Rules
After graduation, the
couple fast-tracked their careers. Wall worked in corporate mergers
and acquisitions before deciding to stay at home with their three
daughters, now 17, 15 and 13, as Spitzer rose in political life.
Wall has repeatedly said
her husband is a family man, grilling on weekends. "I was never
expecting to be a political spouse," she told 02138.
His wife is reportedly
uncomfortable in front of the camera, and no where was that more
evident than when she appeared with Spitzer, Monday, when he spoke
briefly about his situation.
"I have acted in a way that
violates my obligations to my family and violates my, or any, sense
of right and wrong," Spitzer said at a news conference. "I apologize
first and most importantly to my family. I apologize to the public,
whom I promised better."
Teitelbaum said powerful
men like Spitzer often feel they can break the rules.
According to The New York
Times, in 1994, Spitzer denied, then later admitted, borrowing
millions of dollars from his wealthy father to finance an
unsuccessful run in the Democratic primary for attorney general.
"It's narcissism," he said.
"They have a self-centered and distorted view of themselves in
relation to the world. They feel the world revolves around them and
they take liberties crossing the boundaries."
"The rules don't apply to
them," he added. "They feel that if they get caught it will be
covered or hushed up or there won't be any consequences."
Sometimes that is the case.
More than a decade after President Clinton had an affair with intern
Monica Lewinsky, the charismatic politician is bringing star power
to his wife's presidential campaign.
But in 1988 when U.S. Sen.
Gary Hart, D-Colo., challenged the press to catch him with another
woman, they did. His highly publicized affair with Donna Rice ended
his presidential aspirations.
Teitelbaum, author of
"Sports Heroes, Fallen Idols," said celebrity leads people to
believe they can "break the rules."
"These celebrities are
living in a bubble," he said. "They have an entourage of people
around them who feed into the perceptions and reinforce them."
Psychologists say powerful
men turn to prostitutes for several reasons: It is easy for a man
with financial resources; it requires no reciprocity; or a man can't
view his mate as sexually exciting.
California psychotherapist
Diane Ross Glazer, who has worked with prostitutes, said perfect
marriages often look "better from the outside."
"Men generally go outside
the relationship when they think they are not getting what they
need," she said. "Powerful men see other people as there to keep
them up or to inflate them."
'Tragic Situation'
Charles Konia, a
Pennsylvania psychiatrist and author of "The Emotional Plague," said
Spitzer is just one in a long list of powerful politicians who
launch moral crusades and then are caught in a web of deceit.
"Once people get into power
they lose touch with their role as public servant," said Konia.
"They become grandiose and can do nothing wrong. That affects their
judgment."
Konia said if Spitzer has,
indeed, done what he's accused of, he has betrayed the public's
trust. "He is not just an ordinary individual, he's a public servant
and his reputation is on the line."
"It's a tragic situation,"
he said. "The family must be in terrible shock. But the damage is
already done."
In his remarks Monday,
Spitzer said he did not believe "politics in the long run is about
individuals. It is about ideas, the public good and doing what is
best for the state of New York."
Some, including
Shakespeare, would say Spitzer has been hoisted with his own petard.
Still, Denver psychologist
Held says mighty politicians with feet of clay are nothing new.
"It's part of the human condition," he said. "Human beings are
flawed."
Copyright © 2008 ABC News
Internet Ventures
Mrs.
Spitzer Stands By Her Man
By David Knowles
March 11, 2008
--"Stand by your Man" by
Tammy Wynette
At
this point, it has become something of a cliché in our cultural
imagery: A disgraced male public official at a news conference
taking his lumps for a newly unearthed sexual indiscretion while his
baffled yet supportive wife stands at his elbow, struggling to put a
public face on the many emotions roiling beneath a calm exterior.
Many viewers to our latest reality-television episode, starring
Eliot Spitzer, no doubt shouted back at the
T.V.
in sympathetic support to Spitzer's wife, Silda Wall Spitzer, "Leave
the bum!"
So why do so many wives of public figures stick it out after
infidelity comes to light? Why not skip the news conference and file
for
D-I-V-O-R-C-E?
In the recent past
we've witnessed
,
The Vitters,
The Haggards. Each time, a
wife has stoically endured the glare of the cameras and held fast to
the vows her husband has seen fit to ignore. Often, the sexual
compulsion proves so strong for the male that he puts his wife
through the ordeal on multiple occasions, as in the case of
Bill and Hillary Clinton.
No, the symbolic show of support doesn't always work out. Sometimes
the hurdles ahead are just too insurmountable, as in the case of
The McGreeveys, but it's
fascinating to see just how many sullied unions live to see another
day.
Is there anything unique about politicians cheating on their
spouses? Does the power of elected office make you that much more
likely to commit infidelity? Given that many of the men most
recently snared in the media nets seem to have sought out what they
hoped to be discrete professional services, or anonymous sex with
strangers, I'd say that these were not husbands showing off, as much
as libidos run amok.
Is there a higher rate of indiscretion among the powerful than the
general population? True, when everyone's busy telling you how great
you are, it tends to make the possibility of a "Behind the Music"
downfall that much more likely. Yet, men everywhere--from every
race, class, country, and religion--cheat.
If anything, reliable statistics on the number of men (and women)
who cheat are pretty much impossible to gather, but I'd argue that
the public scrutiny of elected officials makes them more careful
than their civilian counterparts. Their fall is just a whole lot
louder than what's happening all the time.
Maybe that's the answer to the question of why so many high-profile
spouses stick it out. They know it's not any better outside the
spotlight of public life. Sing it, Tammy...
Why Do
Smart People Do Dumb Things? Behavior
Experts Dissect Prostitution Mess Surrounding Spitzer
Associated Press
March 10, 2008
NEW
YORK - It's the simplest question in the world, but it was the one
repeated over and over Monday after the staggering news broke about
Gov. Eliot Spitzer: What in heaven's name was the man thinking?
Yet if the New York
governor is proved to have been involved in a prostitution ring, it
would hardly be the first time a powerful, brilliant person in
public life has done something dizzyingly self-destructive.
Why do otherwise smart,
successful people do such risky things? For psychologists and
political analysts who found themselves dissecting the Spitzer
story, it was a question of the chicken or
Louis
Lanzano / AP
the egg: In such situations, does the risky
New York Governor Eliot Spitzer arrives at his Fifthbehavior
precede the powerful job? Or
Avenue
apartment, Monday, March
10, 2008, in
does something about being in power
New
York. Spitzer, the crusading politician who
cause the
behavior?
built his career on rooting out
corruption, apolo-
gized Monday after he was accused of involve-
ment in a prostitution ring.
‘We’re all human’
Many speculated that it was a combination of the two. "We're all
human," said Leon Hoffman, a psychoanalyst in New York. "These urges
are so, so common. Whether it's a prostitute or a mistress that one
chooses, that's another question."
And yet, Hoffman
said, there may be something about the aura of power surrounding a
prominent politician that makes him feel potentially immune from
consequences.
"There's the psychology of
the exception," said Hoffman, former chairman of the American
Psychoanalytic Association's public information committee. "People
in power sometimes feel they can do things that us, mere mortals,
are forbidden to do. There's a sense, as with adolescents, that 'I
won't get caught.'"
Political analyst Steven
Cohen was wary of trying to draw any conclusions about the
corrupting influence of power.
"The problem is we don't
know when this behavior started for this person," said Cohen, a
professor of public administration at Columbia University.
"Politicians are like the rest of us. The fact that they're flawed
and do stupid things shouldn't surprise us."
Held to a higher standard?
The real question, Cohen said, is whether Spitzer should be held to
a different ethical standard. And his answer is yes.
"This isn't Britney Spears
we're talking about. This is the governor," Cohen said. "The bottom
line is, he controls the National Guard and the state police. He
could have people come to arrest you and me tomorrow. So his private
behavior does become a public issue."
One psychologist who has
studied and worked with politicians and their families thinks there
is indeed something different about people who reach positions of
such prominence.
"In order to be in such a
high-profile position, you have to believe that what you are doing
is innately right," said Renana Brooks, of Washington, D.C.
"Anything that isn't right, you may blot out. You can't be tortured
by guilt or indifference. It's just virtually impossible to function
at this high a level without limiting the amount of introspection
you can do."
Spitzer, who has not been
charged and has not resigned, was caught on a federal wiretap
arranging to meet with a prostitute, according to a law enforcement
official who spoke to The Associated Press on condition of anonymity
because the investigation is still going on.
The governor, identified in
court papers only as "Client 9," met with the woman the day before
Valentine's Day, the official said. According to the complaint he
paid $4,300 in cash for that and future trysts, and when discussing
payments told an agent: "Yup, same as in the past, no question about
it."
Echoes of earlier scandals
One longtime analyst of New York politics finds it hard to look at
Spitzer's predicament without thinking of politicians such as
President Clinton in the Monica Lewinsky scandal and New Jersey Gov.
James E. McGreevey, who resigned after announcing he had an affair
with a male staffer.
"These are really
smart guys doing really stupid things — and doing really stupid
things repeatedly," said Doug Muzzio, professor of public affairs at
Baruch College. But the allegations about Spitzer, he said, were the
most shocking, if only because there was no public hint of such
behavior from the governor, who campaigned as a model of moral
rectitude.
"Nobody I've spoken to ...
had any inkling of this," Muzzio said. He said he was torn between
believing Spitzer's situation could be a case of a deep-seated
compulsion or one of simple hubris.
"It could be both — they're
not mutually exclusive," Muzzio said. "Now that would be a really
fatal cocktail. In any case, there's an element of recklessness and
risk-taking that is just breathtaking."
Compartmentalizing risk
Would Spitzer, who knows better than most anyone how law enforcement
works, consider the consequences of getting caught? Analysts say
people often don't consciously think about such risks, even highly
intelligent people.
Chicago psychoanalyst Mark
Smaller believes one can find useful parallels in the case of
certain patients, from all walks of life, who exhibit a striking
capacity to compartmentalize risky, unethical or even illegal
behavior, a process known as the "splitting" of part of the
personality.
"They can be otherwise
completely law-abiding, sensible, reliable people," Smaller says.
"Often the behavior in question is caused by intense anxiety, stress
in the workplace or home, or feeling overwhelmed." And often, he
says, the behavior can involve sex, drugs, or something like
shoplifting.
"They compartmentalize to
the extent that they don't feel any sense of shame or guilt,"
Smaller said. "Until," he adds, "they get caught."
Suspended
Spitzer Aide Is Expected Back at Work
By Danny Hakim
New York Times
August 27, 2007
Gov.
Eliot Spitzer’s communications director, who was a central
figure in an attempt to use the State Police to embarrass the
governor’s main rival, is expected to return to state government
as early as this week, people briefed on the matter said
yesterday.
The aide, Darren Dopp,
was suspended Mike Mike Groli/Associated
Press
without pay for
at least 30 days on July 23, the Darren Dopp,
the governor’s
same day the state attorney general,
Andrew communication director
M. Cuomo, issued a report saying Mr. Dopp and others in the
Spitzer administration had misused the State Police to discredit
Joseph L. Bruno, the Senate majority leader and the state’s
top Republican. Those 30 days expired last week.
Bringing back Mr. Dopp
may anger
Republicans, though it is unlikely he will resume active work
as the governor’s top communications official. It is not clear
what job he will have, but he may temporarily resume his old post
and use vacation time so he can begin drawing a paycheck until his
permanent position is chosen, people with knowledge of the matter
said.
Mr. Dopp’s lawyer,
Terence L. Kindlon, and the governor’s press secretary, Christine
Anderson, declined to comment yesterday.
Suspending Mr. Dopp was
an agonizing choice for the governor. Mr. Dopp has been one of Mr.
Spitzer’s closest aides, working for him since he took office as
attorney general in 1999.
The Cuomo report said
that at the urging of Mr. Dopp and other officials, the State
Police deviated from their traditional procedures and went to
unusual lengths to make public the details of travel services they
had provided to Mr. Bruno. Mr. Dopp has said that the information
was gathered in response to news media requests, though the report
indicated that Mr. Dopp and other officials were gathering
information long before such requests materialized.
The information was used
to show that Mr. Bruno had used state helicopters to attend
political fund-raisers. But Mr. Bruno also conducted some official
business during the trips, which made the state-financed travel
acceptable in accordance with existing state policies, and the
Cuomo report cleared him of any wrongdoing.
The State Ethics
Commission tightened its travel policy after the Cuomo report,
setting strict new guidelines on using state transportation when
both official and nonofficial business are involved.
This month, Mr. Kindlon
said his client “hasn’t done anything wrong.”
“He hasn’t done anything
criminally wrong, he hasn’t done anything unethical and he hasn’t
done anything politically wrong,” he added.
Though Mr. Dopp’s
conduct, as described in the Cuomo report, has enraged
Republicans, the report also found no evidence that laws were
broken. Mr. Dopp, however, declined to be interviewed by Mr.
Cuomo’s investigators at the direction of the governor’s counsel,
leaving lingering questions about the entire matter.
Those will most likely be
further addressed in continuing investigations by the Albany
County district attorney, P. David Soares, and the State Ethics
Commission. Both have something Mr. Cuomo did not, subpoena power
to compel testimony from the governor’s staff.
The governor apologized
for his office’s actions, but said he had had no knowledge that
anything improper was being done.
On Friday, during a
fund-raiser in Saratoga Springs, top Republicans expressed concern
that Mr. Dopp would return in any capacity.
“I think that after what
he’s done, he should not be allowed back in government,” said
Joseph N. Mondello, the chairman of the state Republican Party.
“You can’t do things like that and expect to have the public
trust, and I’m hoping the governor realizes that.”
James N. Tedisco, the
Assembly minority leader, said it would be a problem “until he
answers those questions about how this whole thing developed, who
knew about it besides himself and Mr. Baum, and the extensiveness
of what he was trying to do.” He was referring to Richard Baum,
the governor’s top adviser, who also declined to be interviewed
for the Cuomo report.
“All those questions have
to be answered, and then even after they’re answered, I’m not sure
he really should be working in state government after attempting
to do something like that against the Legislature,” Mr. Tedisco
said.
Mr. Bruno said, “I don’t
care what happens, frankly, with individuals,” adding that he was
far more concerned with seeing further investigations of the
matter play out.
The political calculus in
Albany was muddied last week when lawyers representing the
governor’s father, Bernard Spitzer, accused a top Republican
consultant of leaving a threatening message on his office voice
mail. Mr. Bruno fired the consultant, Roger J. Stone Jr., who has
adamantly denied the allegation.
Mr. Bruno has vowed that
the allegation about Mr. Stone will not distract Senate
Republicans from pressing for further inquiry into the State
Police affair, including their own hearings on the matter.
“We’re going to make sure
nothing diverts the attention of the majority of the people in New
York from getting the facts,” he said.
Mr. Kindlon said this
month that Mr. Dopp, who has not spoken publicly since the Cuomo
report was released, and his family were suffering financially
because of the suspension.
Nicholas Confessore
contributed reporting.
Stormy
Gov. Spitzer's All the Rage
By Cathy Burk
New York Post
July 15, 2007
Aides to Gov. Spitzer are so familiar with his hair-trigger temper
they have a nickname for his wrath: "The full Spitzer."
Amidst one of the
most remarkable recent political rumbles in Albany, Spitzer told New
York magazine he delights in such fractious confrontations.
"Outrage helps both create
a conversation to frame the issues and generate an understanding of
the issues," Spitzer said. "It fits into a larger rationale, which
is that we believe in accountability."
And he is unabashed in
communicating his hatred for the system in the Capitol. "The cliché
is, 'You went to Albany as one of us, you came back as one of them.'
"I'm not coming back as one
of them,"
he told New York.
His lack of anger
management appeared early in his term, when Spitzer singled out some
lawmakers who defied him, including the Republican minority leader
James Tedisco, whom he reportedly told: "I'm a f - - - ing
steamroller, and I'll roll over you."
Spitzer's explanation? He
honed his pugnacity at the dinner table of his multimillionaire
real-estate father, Bernard.
"When you're on the playing
field, you fight as hard as you possibly can," he told the magazine.
"You don't give an inch, because you're both playing by those hard
rules. Afterwards, you shake hands and you say, 'That was great.
Onto the next.' "
He clearly relishes the
game. Asked about his threat to kill the shrinking GOP majority,
Spitzer told the magazine: "There is some virtue in my saying to
them, 'Fellows, your hold is tenuous.' "
The gov's love of the sport
of acrimony turned bloody when it came to GOP Senate Majority Leader
Joe Bruno. "Spitzer has an attitude about him, he really does, like
he's kind of above it all," Bruno told the magazine. "He thinks I'm
a street kid that doesn't know night from day."
Spitzer responds: "This
fight has nothing to do with culture or class. Bruno's answers are
simplistic pablum."
Their animosity flared when
it came to the budget. To carry out Spitzer's goals - lowering
taxes, redistributing school aid, insurance for the uninsured, and
health-care reform - the gov took aim at a Bruno ally: the
health-workers union Local 1199 SEIU, headed by Dennis Rivera. The
union fired back with withering ads.
The magazine reported
Spitzer once said he'd learned at the DA's Office there were some
fights in which "you can never concede errors because you just can't
do it."
Post-combat, Spitzer is
taking the long view.
"The legislative piece, you
need the budget, but the rest of it . . . eh?" he said.
"There is an unbelievable
opportunity now to govern through the agencies, and that's frankly
what I'm really looking forward to. . . .
"I can be patient. I'll
build coalitions, I'll get it done. I've got four years, I'm in no
hurry."
Bruno
Hits Spitz as Elex-$$ 'Hypocrite'
By Kenneth Lovett, Post
Correspondent
New York Post
April 28, 2007
ALBANY
- State Senate Majority Leader Joseph Bruno yesterday ripped Gov.
Spitzer as a hypocrite for bashing Senate Republicans on the issue
of campaign finance while at the same time offering special access
to those who pledge money for his 2010 campaign.
"It's hypocritical," Bruno
said. "It's not the way to go. It's paying for access."
The Post reported Thursday
that Spitzer is asking prospective donors to join his re-election
finance committee to raise up to $1 million each by Election Day
2010.
He is offering varying
degrees of special access - depending on how much a person commits
to raising - that range from quarterly finance meetings with Spitzer
to lunches, private barbecues and holiday parties with the governor
and his wife.
"I'd like to have a public
debate with the governor on this issue, on how he justifies creating
access for $1 million, a little less access for half a million
dollars, a little bit less for a quarter million dollars, a little
bit less for $100,000, a little less for 50," Bruno said.
"I don't know what you get
for 25 or the poor peons who can only come up with 10. What do they
do? Get to wave. I just think it's ludicrous."
Spitzer spokeswoman
Christine Anderson, noting that the governor has already voluntarily
set lower donation limits for his campaign, called Bruno's comments
"off the mark and misleading."
"The fund-raising events
that are in question are not at the Governor's Mansion, the state
Capitol or state offices," she said. "They don't provide access to
state resources.
"The governor believes that
campaign finance is important to cleaning up the culture of Albany
and urges Mr. Bruno to sign on to that effort."
Supporters Buying Time with
Spitzer
By Kenneth Lovett Post
Correspondent
New York Post
April 26, 2007
ALBANY
- Gov. Spitzer is granting special access to supporters - called
"Trustees" - who raise a $1 million for his 2010 campaign, The Post
has learned.
Spitzer, who is traveling
the state bashing the Republican-controlled Senate for rejecting a
campaign-finance reform measure, is at the same time asking
prospective donors to join his 2010 re-election finance committee
and providing different fund-raising targets.
Someone who pledges to
raise $25,000 by Election Day, 2010, is designated a "Friend" and
will be invited to quarterly finance-committee meetings with the
governor while also receiving periodic conference-call updates with
Spitzer and the campaign staff, according to a mailing obtained by
The Post.
The levels, and rewards,
increase until someone can become a Trustee by pledging to collect
$1 million for the Democratic governor.
Trustees are promised a
complete package that includes a semiannual lunch with the governor
and an annual barbecue with Spitzer and First Lady Silda Wall
Spitzer at their upstate farmhouse.
Anyone committing to raise
at least $250,000 can attend an annual holiday party with the first
couple, while raising at least $100,000 gets a person listed in the
honorary program and complimentary admission for all major
fund-raising events.
The letter notes the
voluntary fund-raising limits that Spitzer has adopted for himself
that must be adhered to, including a $10,000 limit on personal
contributions and a $5,000 corporate limit that restricts additional
donations from subsidiaries and limited-liability corporations.
Republicans called Spitzer
a hypocrite for traveling the state attacking them for not backing
campaign-finance reform while at the same time asking people to
raise millions of dollars for him with the promise of access. "The
Lincoln Bedroom? This is the Lincoln Hotel," Sen. Vincent Leibell
(R-Dutchess) fumed in reference to the Clinton administration's
offering of stays in the White House to campaign donors.
"This is pay to play, big
time," Leibell said. "New York state deserves better than this."
Having individuals raise
large amounts for a candidate - known as bundling - is not uncommon,
particularly since federal campaign-finance reform was enacted
several years ago.
President Bush in the last
cycle deemed anyone who raised at least $200,000 as "Bush Rangers"
and at least $100,000 as "Bush Pioneers."
But in Spitzer's case, the
fact his target levels dwarf anything seen to date and that he has
made campaign-finance reform a top priority has raised the ire of
some.
"In my time here, no one
has come close to these numbers," Leibell said.
"To go around the state
talking about campaign-finance reform and then asking people to
raise this type of money for you is the ultimate height of
hypocrisy."
Spitzer has already raised
eyebrows regarding his June 7 fund-raiser for his 48th birthday in
which those who pledged to raise at least $25,000 for the event
would attend a VIP reception and a private dinner with the governor.
Those who raise at least
$100,000 would receive four seats at the private dinner.
In addition, Spitzer agreed
to participate in a fund-raiser for the state Democratic Party that
promises those who donate $25,000 entrance to a "VIP" reception with
the governor. Spitzer has said that while he voluntarily will adhere
to stricter limits he doesn't expect others to necessarily follow
without a new law in place.
"Unfortunately, Governor
Spitzer's actions make it clear that he thinks there are two sets of
rules: one for him and another for everyone else," state GOP
Chairman Joseph Mondello said yesterday.
Spitzer's
Numbers Take Dive
By Fredric U. Dicker
New York Post
March 27, 2007
Gov.
Spitzer's approval ratings have taken a serious hit in the wake of a
multimillion-dollar television blitz against his efforts to slash
the huge Medicaid program, according to a poll released yesterday.
The Siena College survey of
registered voters found Spitzer's personal approval rating dropped
from an impressive 74 percent last month to 62 percent - while his
disapproval rating was up to 20 percent from 12 percent.
The governor's overall job
approval rating was also down - to 47 percent from 58 percent last
ELIOT SPITZER - Down 12 points
month. And the number of those
giving him a poor job rating also jumped to 39 percent from 24
percent last month.
Spitzer claimed he wasn't
troubled by the poll results, saying, "I will gladly trade away an
awful lot of that transitory popularity to make the tough decisions
that are necessary to move us in the right direction."
Additional reporting by
Kenneth Lovett
Judge
Scandal Could Tarnish Spitzer Shine
Anti-corrupt Gov Hiring Pol Tied to Norman?
By Lisa L. Colangelo,
Nancie L. Katz and Adam Lisberg
New York Daily News
January 15, 2007
Gov.
Spitzer took office two weeks ago with a corruption-busting promise
- but yesterday he welcomed into his inner circle a man who has been
named in connection with an exploding Brooklyn bribery scandal.
Former state Sen. Carl
Andrews was one of several insiders who were invited into Spitzer's
midtown offices following a news conference where the governor
ducked a question about the corruption probe.
"With respect for the
alleged improprieties that have been the subject of investigation in
Brooklyn, obviously those cases continue and they proceed," Spitzer
said.
Andrews is reportedly being
considered for a high-ranking post in the Spitzer administration -
and while the governor said little, his exit with the well-connected
Andrews seemed to show Spitzer was not publicly distancing himself
from him.
The Village Voice claimed
in a story published Saturday that Andrews picked up a bribe in 2001
- either $25,000 in cash or $3,000 in postage stamps that could be
used in a campaign - from a sex therapist named Norman Chesler, who
was hoping to get his cousin, Civil Court Judge Howard Ruditzky, a
seat on the state Supreme Court.
Andrews allegedly delivered
it to his longtime confidant Clarence Norman, a corrupt Democratic
Party boss who could be indicted for allegedly taking as much as
$70,000 in bribes to put Ruditzky on the bench, The Voice reported.
Andrews told the Daily News
yesterday he has never met Chesler - and when asked point-blank
about collecting a bribe, said it was beneath his dignity to answer.
"I'm insulted by the
question and the implications behind that question," he said. "I
guess my only crime is being Clarence Norman's friend. Guilt by
association."
Law enforcement sources
told The News yesterday that Andrews is not a target in the
long-running probe of whether Brooklyn judges have bought their way
onto the bench.
Andrews held a
community relations job under Spitzer when he was state attorney
general. Andrews later served as a Brooklyn state senator and ran
unsuccessfully for Congress last fall.
Ruditzky, Chesler and
Norman declined to comment. Norman's lawyer Edward Wilford said he
has not been contacted by Brooklyn District Attorney Charles Hynes
about the allegations.
Prosecutors would not file
any new charges against Norman until after his Jan. 23 trial on
extortion charges, a law enforcement source said.
Spitzer's office did not
respond to a request for comment.
With Nicole Bode and Tamer
El-Ghobashy
Spitzer
Pays Big Bonuses to Campaign Staff
New York Lawyer
By The Associated Press
December 6, 2006
ALBANY, N.Y. -- It's payback time for the campaign staff of
Gov.-elect Eliot Spitzer, with select staffers sharing in $1.3
million in bonuses.
Spitzer's longtime senior
adviser, Rich Baum, received $200,000 and campaign spokeswoman
Christine Anderson received $100,000, according to state campaign
finance filings.
Each will have prominent
roles in the Spitzer administration.
"The bonuses reflect the
hard work and determination of a remarkable campaign staff," Spitzer
said in a statement.
Bonuses paid through a
candidate's campaign fund aren't unusual, but Spitzer's were notably
generous. Spitzer still has $5.5 million left in the fund after
raising $40 million for the winning the race against Republican John
Faso.
Nearly 50 campaign aides
received bonuses.
|
Empire of the Son-
Spitzer Reaps Fortune from Dad’s Real Estate Smarts
By Douglas Feiden
New York Daily News
October 29, 2006
EXCLUSIVE - Over half a
century, the father of Democratic gubernatorial candidate Eliot
Spitzer built an empire of glass and steel - and a fortune worth
some $500 million - in the priciest precincts of Manhattan.
Bernard Spitzer, an
82-year-old engineer who changed the New York skyline without
the flash of a Donald Trump, owns or holds a stake in at least
10 properties on or near the East Side, most of which he
developed.
"They are all
magnificent buildings," he told the Daily News. "Five of them
are on Central Park."
Three of them have made
or saved millions of dollars for his 47-year-old son, the
attorney general - through gifts, asset sales and rental income
- during his eight years in public office, a News examination
found.
In one of those
buildings, the politician doubles as a landlord: He's a partner
in a family firm that controls six Madison Ave. shops - and he
gets rent from the likes of Georg Jensen, the Danish jeweler,
and Anne Fontaine, the Parisian designer.
While his state salary
paid him $151,150 last year, sky-high retail rents earned him
$949,581.
Spitzer has lived
rent-free with his family at 985 Fifth Ave. for 13 years. The
25-story tower off 79th St. has just two apartments per floor
and terraces that look down at the Metropolitan Museum of Art.
The history: His father
bought two townhouses on the site in 1967, razed them and put up
the luxury building in 1968. It has been a dependable moneymaker
ever since - generating $5.5 million in rent last year alone.
Thanks to his dad's
generosity, Spitzer, his wife and three daughters have lived in
a home graced with at least three bedrooms, four baths, a
balcony, library and sweeping vistas of Central Park.
In a phone interview,
Bernard Spitzer confirmed certain facts about his property
holdings, but declined to discuss his gifts: "I would ask,
respectfully, that any information about Eliot's finances be
provided by Eliot's office."
Referring to his son
the attorney general and two other children - Daniel, a
neurosurgeon, and Emily, a lawyer - he said, "These are not
children who sit around availing themselves of the benefits of a
comfortable upbringing and lifestyle.
"They all work, and
they work very hard. ...And it gives me great pleasure to see
them fulfilling themselves and their responsibilities."
Vetted by lawyers and
accountants, the living arrangement is both lawful and proper,
said Darren Dopp, Spitzer's communications director: The father
pays an annual gift tax on the present he gives his son.
"These and other
financial matters are handled by professionals who ensure that
everything is done in strict accordance with city, state and
federal law," Dopp said.
The market value of the
gift is reported annually on real estate tax filings and on
Bernard Spitzer's tax returns. But citing privacy, Dopp declined
to disclose the apartment's rent, the gift's value or the amount
of the gift tax paid.
Three real estate
brokers familiar with the building say that a spread of
comparable size could lease for $16,000 to $20,000 a month. That
puts the gift's current value at an estimated $192,000 to
$240,000 a year.
"Landlords on Fifth
Ave. can ask for almost anything they want, and chances are,
they'll get it," said Onik Ovanes, a broker at Prudential
Douglas Elliman.
The home at 985 Fifth
Ave. is one cornerstone of the family fortune. Others are
spelled out in a 2003 letter in which Eliot Spitzer recused
himself from dealings his office may have with firms that could
pose a potential conflict of interest.
Under the Freedom of
Information law, The News sought the document June 8 and
received a version June 15 with the names of 18 family real
estate companies blacked out.
The newspaper's appeal,
on July 14, was denied on Sept. 1 by Spitzer's lawyers, who
cited security and privacy concerns. After requesting an opinion
from the state's Committee on Open Government, The News was
given the names on Oct. 12 by Spitzer's counsel. The 18 firms
represent the elder Spitzer's interest in 10 Manhattan
residential and commercial buildings, two East Side parking
garages and a Washington office building on K St.
Among his properties:
The Retail Strip. The
family holds a master lease on six Madison Ave. storefronts
below 62nd St. - on a block where first-floor rents can top
$1,000 a square foot.
Since 1999, the
attorney general's share of the partnership generated $5.1
million in rental income from such retail tenants as Ghurka, the
luxury leather goods shop.
The Curving Tower.
Bernard Spitzer built 200 Central Park South, famous for its
dramatically curved corner, in 1963 and transferred partial
ownership to his three children.
In 1984, the 35-story
building went co-op, and Eliot Spitzer's stake became eight
apartments, which he rented out. After running up millions in
bank debt in his winning campaign in 1998, he sold them back to
his father for $6.1 million in 1999 to pay off the loans.
The Gargantuan Tower.
Bernard Spitzer built the Corinthian at 330 E. 38th St. in 1988.
The 57-story Murray Hill condo, with 865 units, is one of the
single largest apartment buildings in America. His son lived on
the 49th floor from 1989 to 1993.
The Tower Above the
School. Bernard Spitzer built the 28-story rental at 220 E. 72nd
St. - with a home for Marymount Manhattan College on the lower
six floors. His son lived on the 24th floor from 1984 to 1989.
Bernard Spitzer also
built 210 Central Park South, 1050 Fifth Ave. and 800 Fifth
Ave., all on Central Park. In addition, he built 150 E. 57th
St., a luxury rental, and a Washington building on K St. for
lawyers and lobbyists.
He also holds a stake
in the landmark Crown Building, at 730 Fifth Ave. on 57th St.,
which was once owned by notorious Philippine dictator Ferdinand
Marcos.
Owners of Tony Shops Stunned
to Learn That AG Is Their Landlord
By Douglas Feiden
Daily News Staff Writer
October 29, 2006
The sheriff of
Wall Street is also a landlord on Madison Ave.
For the
past eight years, Attorney General Eliot Spitzer has
been a partner in a family-owned real estate company
that holds the 25-year master lease on six
ground-floor shops on the east side of Madison Ave.
below 62nd St., property records show.
Spitzer
plays no management role in the company, aides say.
He's a passive investor, which may explain why
shopkeepers were flabbergasted to learn of his
involvement.
"I'm
stunned. This is the guy who's going to save New
York! When does he find the time to be a landlord?"
said Costas Liagouris, general manager of Church's,
the British shoe emporium.
Developer
Bernard Spitzer, Eliot's father, confirmed that
Spitzer-Madison holds the lease for the boutique
shops in the Cumberland House, the co-op apartment
building around the corner at 30 E. 62nd St. It runs
until 2015 and dates to 1990.
He referred
questions about his son's finances to the attorney
general's office, which said the elder Spitzer paid
a gift tax when he made his three children partners
in Spitzer-Madison.
Spokesman
Darren Dopp wouldn't disclose the gift's value or
the amount of tax Bernard paid, saying that details
of his finances are private.
Among the
Spitzers' tenants:
Lockes
Diamantaires, where a 21-carat cut diamond ring sold
recently for $1.8 million.
Ghurka,
where a men's leather briefcase retails for $1,895.
Georg
Jensen of Denmark, where a woman's necklace adorned
with silver moonstones goes for $3,800.
The
attorney general's ownership stake in Madison Ave.
retail property provides a footnote to a controversy
that rocked his successful 1998 campaign over
undisclosed loans he received from his father.
In that
race, he incurred millions of dollars in bank debt.
To pay it off, he sold eight co-ops at 200 Central
Park South to his father - who had earlier given
them to his son as a gift - for $6.1 million.
The sale
took place in the first week of February 1999. Days
later, on Feb. 10, Spitzer-Madison was incorporated
in Delaware, and on May 1, the lease for the retail
stores was transferred from another Spitzer company
to the new firm.
The
back-to-back transactions allowed Spitzer to legally
substitute one income stream for another, each
provided by his father.
"These
transactions were handled in strict accordance with
the law," Dopp said. They were also fully disclosed
in city real estate filings, tax returns and
financial disclosure forms, he added.
Still, it
was news to the merchants on the block: "We've been
here four years and I never knew he was the
landlord," Liagouris said.
But
Liagouris was delighted: "Hey, I'm an avid Democrat
- I'm not complaining."
|
Spitzer
Leads Faso by $36m
Associated Press
October 7, 2006
ALBANY - Eliot Spitzer has
raised $39.1 million in his campaign for governor compared to
Republican John Faso's $3.4 million, according to campaign finance
records submitted yesterday.
Spitzer still has $8.6
million left for the final month of the race compared to Faso's
$972,256.
Spitzer and his running
mate, state Sen. David Paterson, who wants to be lieutenant
governor, raised about $693,000 from Sept. 19 to Oct. 3, according
to state Board of Elections records. They spent $701,000 in the
period for which financial-disclosure reports are required for
candidates in September's primary.
Faso had no primary, so his
records reflect contributions and spending since July. He raised
$952,519 during that time and spent $1.4 million.
Spitzer had a 73-21 percent
lead over Faso among likely voters in this week's Quinnipiac
University poll.
2 Sides
of Spitzer
Love-hate Relationship with Civil Libertarians
Editorial
New York Daily News
August 7, 2006
Politicians are known by
their enemies, and when Eliot Spitzer ran for state attorney general
in 1998, the Democrat's best-known enemy may have been the American
Civil Liberties Union.
In private practice,
Spitzer founded the New York branch of the Center for the Community
Interest, a public interest law firm that tangled with civil
libertarians on issues like anti-gang laws and AIDS testing for
infants. He ran a commercial that mocked the liberal lawyers who
opposed searching schoolchildren for guns.
After he was elected, he
backed state financing for parochial schools and "roving" wiretaps
for police. He calls the New York Civil Liberties Union's resistance
to the wiretap law "somewhat ludicrous."
Spitzer is now known as a
crusading populist, the scourge of Wall Street and the darling of
New York's liberal interest groups.
But as his lesser-known
civil liberties fights show, the front-runner to become the next
governor resists easy ideological classification.
"The principles I have been
pursuing have been remarkably consistent since I got into electoral
politics," he said Friday.
Civil libertarians agree.
The NYCLU's Christopher Dunn says Spitzer "has been conspicuously
silent when it comes to civil rights and civil liberties," and that
he is "astonished at what a completely free ride he has gotten."
Spitzer has flirted with
national political movements, writing for the centrist New Republic
and, for a time in the 1990s, participating in an attempt to start a
New York chapter of the Clintonite Democratic Leadership Council.
But he's not plugged into any national Democratic trend, and has no
Washington mentor.
Asked about the DLC, to
whom Sen. Hillary Clinton delivered a recent policy address, he
says, "I don't know what they're doing these days."
Spitzer also declined to
take a side in the Connecticut race that's at the center of the
widening rift between the Democratic Party establishment and
anti-war activists. While Sens. Hillary Clinton and Chuck Schumer
support Sen. Joe Lieberman, Spitzer said he's staying on the
sidelines.
Spitzer, despite his
tangles with Wall Street casts his core value as enthusiastic
capitalism: "What you can see as a common refrain is a belief in the
marketplace," he says. "That is something that is a strain in
everything I've done, with a parallel belief that the market has to
be tamed when there are abuses."
This doesn't fit naturally
into the left-right frame of U.S. politics, and you can almost put
Spitzer's views into two columns. On the right, there's support for
the death penalty, state funding for parochial schools and expanding
nonunion charter schools. On the left there's same-sex marriage and
a delight in clashing with corporations.
If there's a thread running
through his views - critics say there isn't - it's a balancing of
choice, from marriage to education, with a sense of responsibility.
Among his most detailed
policy proposals is for health-care reform, a plan that involves
closing hospitals, making state-financed nursing home care less
common, and expanding the number of people with public health care.
Spitzer's main policy aide,
Paul Francis, said the candidate rejects both the liberal focus on
who pays and the conservative instinct to treat patients as
consumers.
"Eliot would say that the
left is asking the wrong question and the right is coming up with
the wrong answer," he said of health care. ***
One problem that he doesn't
remember facing in eight years as attorney general, Spitzer said, is
the Ku Klux Klan. One of the candidates to replace him, Andrew
Cuomo, surprised observers by using a flaming cross as the dominant
image of his first political advertisement, with the narrator saying
Cuomo "took on the Ku Klux Klan" as federal housing secretary.
But Brian Levin, a lawyer
who represented a white woman who, with her mixed-race daughter, was
harassed by Reading, Pa., racists, said Cuomo had earned the
bragging rights.
"He took a personal
interest in the case and used creative methods to stop the
harassment," he said.
The alleged Klansman in the
case was unrepentant and said at the time that Cuomo could kiss his
"derriPre."
Spitzer
Took 25g from Wrist-slap Firm's Man
By Kenneth Lovett
New York Post
July 21, 2005
ALBANY-
A giant insurer investigated by state Attorney General Eliot Spitzer
got what was widely viewed as a slap on the wrist just days after
Spitzer pocketed a $25,000 campaign donation from a high-ranking
former employee, The Post has learned.
An ex-senior vice president
of Aon Corp. - who sources say still consults for the company and
spends time at its offices - made the contribution to Spitzer's
gubernatorial war chest three days
Former Aon Exec Richard Ferrucci
before
a settlement with the international insurance broker was announced,
records show.
Richard F. Ferrucci, a Long
Island resident who worked for Aon from 1993 through late 2003, made
the donation on March 1, according to Spitzer's latest campaign
fund-raising report. Spitzer's settlement with Aon was announced
March 4.
Under the deal, no Aon
execs were forced to resign and the company admitted no wrongdoing
after being probed for steering business to companies that in turn
paid fees back to Aon. The firm paid a $190 million fine.
At the time, critics
charged that Spitzer went easy on Aon and noted that the deal
differed from a similar case of alleged wrongdoing at insurer Marsh
& McLennan, in which the attorney general forced the chairman out
and three employees were criminally charged.
Though Ferrucci is no
longer with Aon, two Aon employees on Long Island said yesterday he
still spends time at the company and serves as a consultant.
Spitzer also received
$50,000 from attorneys with Constantine Cannon, one of two firms
which represented Aon in the settlement talks with the attorney
general's office, records show.
Spitzer is a longtime
friend of the firm's chairman, Lloyd Constantine, and the two were
partners in private practice.
Constantine, who headed up
Spitzer's transition team in 1998, has donated $36,000 to Spitzer's
campaigns in recent years - including $15,000 since last October
when the Aon investigation was in full swing, records show.
Other attorneys from
Constantine Cannon have donated an additional $35,600 to Spitzer
since October, according to the records. Constantine, who helps
Spitzer raise campaign money, said he believes the attorney
general's office actually treated him more harshly to avoid
allegations of favoritism during the settlement talks.
"I represented Aon with
diligence," he said. "I don't believe I got any favoritism from the
AG's office," he said.
It's the second instance in
which Spitzer has taken large donations from lawyers representing
companies he's investigating.
The Post reported in April
that Spitzer had received $18,500 from members of another of his old
law firms that had been hired by AIG - even as the insurance giant
was under investigation.
Spitzer's campaign has a
policy of not taking donations from employees of companies under
investigation, but that does not apply to lawyers representing the
firms.
Editor's Note: Lloyd
Constantine has done legal work for News Corp., the parent company
of The Post
Complaint
Filed Over Spitzer's Role in Trust
By The Associated Press
New York Lawyer
July 14, 2006
A complaint filed yesterday
with the state Ethics Commission questions whether Attorney General
Eliot Spitzer's role in a family financial trust conflicts with his
job policing charitable organizations.
The complaint was filed by
rival Democratic candidate for governor Tom Suozzi. If a conflict is
found, Mr. Suozzi wants Mr. Spitzer to resign as a trustee of the
Bernard and Anne Spitzer Charitable Trust. The commission is
prevented by law from publicly disclosing whether it is launching an
investigation until it finds there is reasonable cause for charges.
New York Daily News
New York Attorney General
Eliot Spitzer, a Democrat who polices the Empire
State’s 60,000 charities and nonprofits, is helping his family
administer a charity that his office oversees, the New York Daily
News reported July 9. According to the newspaper, the
Bernard and Anne Spitzer Charitable Trust invests almost
all of its nearly $26 million in assets in hedge funds and equity
funds whose executives have made generous donations in the hundreds
of thousands of dollars to Spitzer’s gubernatorial campaign.
Spitzer, a trustee for the nonprofit organization, denied any
wrongdoing, but ethics expert Marcy Murninghan, a
consultant to foundations and a former ethics professor at Harvard
Divinity School, said the actions raised red flags. “It raises
ethical questions -- and suggests a level of self-dealing -- when
financial investments are placed with investors who happen to be his
biggest contributors.”
Eliot on
Charity Role: Couldn't Be Prouder
By Douglas Feiden
New York Daily News
July 12, 2006
|
Attorney General Eliot Spitzer personally defended his role as
trustee of his family's charity - marking the first time he has
responded to the findings of a Daily News investigation.
Responding to a News
story on Sunday that probed the Bernard and Anne Spitzer
Charitable Trust's finances, Spitzer said yesterday, "The
millions we have given have gone to great purposes - and we
couldn't be prouder of what we've done, where it's gone and how
we've done it."
He said the charity
gives away tens of millions of dollars - and never issues a
press release, puts the family name on a building or trumpets
its good works.
The charity is
regulated by his office and had to pay a $51,000 federal tax
penalty.
"Look, we're giving
away money, guys!" he told the Daily News Editorial Board.
"We're taking our own money and we're writing checks to
hospitals, to schools, to museums."
But Nassau County
Executive Tom Suozzi, who is seeking the Democratic primary nod,
said Spitzer had flouted the law, and a state Ethics Commission
opinion, by serving for five years on a board monitored by his
office.
"He's a Harvard Law
School graduate. He should know a textbook conflict of interest
when he sees one - a conflict between his official duties and
his position on the family trust."
But Spitzer said he's
advised by lawyers and ethics experts who say he's done
everything properly and does not need to seek an advisory
opinion from the Ethics Commission.
The Spitzer Trust in
2004 had to pay a $51,768 penalty to the IRS for failing to make
charitable gifts at the level required by U.S. tax law in
previous years.
But charitable experts
pointed out that every tax-exempt dollar sent to the IRS is a
dollar diverted from charity.
"Instead of giving to
soup kitchens or groups inspired by Mother Teresa, they're
giving to the Bush administration," said Marcus Owens, the
ex-chief of the exempt organizations division at the IRS from
1990 to 2000.
http://www.nydailynews.com/07-12-2006/news/politics/story/434383p-365982c.html
Spitzer’s Role in a
Trust Is Questioned by Suozzi
By Jennifer Medina
New York Times
July 11, 2006
Thomas R. Suozzi
sharply criticized his rival for the
Democratic nomination
for governor, Attorney General
Eliot Spitzer, saying
yesterday that Mr. Spitzer was violating state
conflict-of-interest regulations by sitting on the board of his
family’s charitable trust.
The attorney general
oversees more than 60,000 nonprofit and charitable institutions
in New York, including trusts.
The criticism of Mr.
Spitzer came the same day the Suozzi campaign filed signatures
with the state’s Board of Elections to place Mr. Suozzi’s name
on the September primary ballot. Mr. Suozzi needed to collect
15,000 signatures to make it on the ballot, and campaign aides
said they filed 40,000. The campaign did nothing to publicize
the filings, which came after weeks of work by volunteers and
paid staff members.
Mr. Suozzi’s attacks
came after news reports of the activities of the Bernard and
Anne Spitzer Charitable Trust, on whose board Mr. Spitzer sits.
The trust has invested $25.9 million in hedge and equity funds,
and several of those later donated millions of dollars to Mr.
Spitzer’s campaigns. "This raised clear questions about who is
going to look and see if they used the money properly," Mr.
Suozzi said. "It certainly raises the appearance of a conflict,
and there are laws that make it clear."
Mr. Suozzi pointed to a
1990 advisory opinion issued by the State Ethics Commission. In
the opinion, the commission concluded that state officers in
"policymaking positions" should not "serve as director or
members of the board of organizations regulated, overseen or
licensed by the employing state agency."
The opinion was issued
in response to an inquiry by the State Office of Mental
Retardation and Developmental Disabilities, which asked whether
a member of the agency could serve on the board of a nonprofit
agency licensed by the office.
Darren Dopp, a
spokesman for Mr. Spitzer, said that the advisory opinion would
not apply in this case, and that the attorney general’s office
did not have direct oversight of family trusts, which disburse
private money, as it does of nonprofits, which solicit from the
public.
Managers of several of
the hedge funds each donated $50,100, the maximum allowed by
state law, to Mr. Spitzer’s campaign, state records showed. The
donors, including Jeffrey L. Berkowitz of Cramer Berkowitz and
Douglas Hirsch of Seneca Capital, gave almost exclusively to Mr.
Spitzer, according to an analysis by
Common Cause New York.
"The individuals that
have contributed to him are friends; to construe that as somehow
inappropriate or nefarious is something of a stretch," Mr. Dopp
said.
Still, the confluence
of private and public business is enough to raise questions
about Mr. Spitzer’s dual role, said Blair Horner, legislative
director of the
New York Public Interest Research Group.
"The commission’s opinion should act as a spur for the attorney
general to request a formal advisory opinion," Mr. Horner said.
Patrick Healy
contributed reporting for this article.
http://www.nytimes.com/2006/07/11/nyregion/11gov.html?ex=1162270800&en=cb3457da29682dd3&ei=5070
|
[Index to Articles]
|