It Wasn't the Sex; Suspicious $$ Transfers Led to Spitzer

[Purveyor]

By BRIAN ROSS
March 10, 2008

The federal investigation of a New York prostitution ring was triggered by Gov. Eliot Spitzer's suspicious money transfers, initially leading agents to believe Spitzer was hiding bribes, according to federal officials.

It was only months later that the IRS and the FBI determined that Spitzer wasn't hiding bribes but payments to a company called QAT, what prosecutors say is a prostitution operation operating under the name of the Emperors Club.

As recently as this past Valentine's Day, Feb. 13, Spitzer, who officials say is identified in a federal complaint as "Client 9," arranged for a prostitute "Kristen" to meet him in Washington, D.C.

The woman met Client 9 at the Mayflower Hotel, room 871, "for her tryst," according to the complaint. Client 9 also is alleged to have paid for the woman's train tickets, cab fare, mini bar and room service, travel time and hotel.

The suspicious financial activity was initially reported by a bank to the IRS which, under direction from the Justice Department, brought in the FBI's Public Corruption Squad.

"We had no interest at all in the prostitution ring until the thing with Spitzer led us to learn about it," said one Justice Department official.

Spitzer, who made his name by bringing high-profile cases against many of New York's financial giants, is likely to be prosecuted under a relatively obscure statute called "structuring," according to a Justice Department official.

Structuring involves creating a series of financial movements designed to obscure the true purpose of the payments.

---eoe---

http://abcnews.go.com/Blotter/story?id=4424507&page=1

[EVDebs]

1. Meanwhile, another 'investigation' is buried. Deep.

http://www.msnbc.msn.com/id/12634250

It's such an old case now, the files (on computer no less) are growing mold !

[malaise]

3. Bingo n/t

[bluerum]

2. Right. Federal wire taps. Get the voice. Look for the goods. No wonder

congress is stonewalling the bastards. I would too.

[madrchsod]

4. what a dumb fuck....

was he that stupid that he thought no one would notice?

[JI7]

5. many men seem to get stupid when it comes to that

didn't Jerry Springer pay his prostitute with a check ?

[madrchsod]

6. i forgot about that--yes he did!

[peacetalksforall]

7. I first heard the news on the Ed Schultz show and he said 'prostitution ring' which is which

was the way he heard it, I suppose. I immedately assumed he was involved in OPERATING a ring. If he is only a USER - no Dems should be saying ring - or don't I understand the vernacular?

[RB TexLa]

8. Stupid premise, no one puts bribe money in a bank. If he had taken bribes they would have been in

cash and never touched a bank after he had accepted them. They come to you either in person or Fedex.

[KoKo]

9. The best thing to be said...is Spitzer behaved as what we used to call "A Gentleman" paying for her

"travel, etc." There are many today...who wouldn't bother with that.

The woman met Client 9 at the Mayflower Hotel, room 871, "for her tryst," according to the complaint. Client 9 also is alleged to have paid for the woman's train tickets, cab fare, mini bar and room service, travel time and hotel.