The New York Timesis reporting that federal prosecutors are trying to figure out if Eliot Spitzer used campaign funds for any part of his liasons with call girls.
Federal prosecutors are investigating whether Gov. Eliot Spitzer used campaign funds in connection with his meetings with prostitutes, including payments for hotels or ground transportation, three people with knowledge of the investigation said.
Prosecutors have asked the governor's lawyers about the travel arrangements for three trips, including his Feb. 13 rendezvous with a prostitute at the Mayflower Hotel in Washington. The United States attorney's office in Manhattan has also asked about the governor's use of car services during trips to Washington.
The governor's lawyers have begun consulting with a campaign finance expert who has long worked for Mr. Spitzer's political organization to see whether campaign money was spent on the trips, including some as recently as last month, a person briefed on the investigation said.
Eliot has denied this to his aides and attorneys. That said, if this concern by the feds is worthy of an inquiry so is the acknowledged fact that Joe Bruno used campaign funds for a trip to Florida that only became "private vacation" after a trip to "Rachel's", a Florida Strip bar was revealed.
Senate Majority Leader Joseph L. Bruno used state-regulated campaign funds to pay for his stay at an exclusive south Florida hotel last year, during a three-day trip he has described as "a vacation."
His staff, too, initially insisted the trip was private.
However, state law makes "the personal use of contributions received by a candidate or political committee" a crime "if such personal use is unrelated to a political campaign or the holding of a public office or party position."
Bruno's claim that the trip was a private vacation raises questions about his use of campaign money to help pay for it. Last week, Bruno and his staff refused to answer additional questions or discuss details of the senator's visit to Florida.
Here's how the Albany Times Uniondescribed it at the time of the trip:
Senate Majority Leader Joseph Bruno heads to Florida tomorrow for a two-day stay that will culminate in a $3,000-a-couple ($2,000-per-single, so two attendees is a regular bargain) fundraiser hosted by The Donald at his Mar-a-Lago Club in Palm Beach.
The fundraiser will benefit the Senate Republican Campaign Committee, not Bruno's own re-election effort, I'm told. Bruno will not be staying at Mar-a-Lago, and his campaign committee will be picking up the tab for his trip.
Yeah, it was a "campaign trip", one of his yearly high dollar fundraisers at Donald Trump's place until we learned about this:
New York's legislative leaders had been in session only a few days last year when Senate Majority Leader Joseph L. Bruno quietly left town for a vacation in Florida.
It was Jan. 11, a Wednesday, and a bitter political debate over sexual offender laws was unfolding as Bruno boarded the private jet of his friend, Jared E. Abbruzzese, a Loudonville multimillionaire.
...
On the drive back from the golf course, the men pulled into Rachel's, a high-class strip club and steakhouse in the heart of West Palm Beach. There, patrons are greeted by overly polite valets who spend much of their time parking Range Rovers and customized BMWs driven by an almost exclusively male clientele.
...
Inside, $40 steaks and $90 bottles of wine are delivered by bow-tied waiters in a darkened four-star atmosphere. On two stages in the center of the club, female performers, some fully nude, move fluidly under pulsing strobe lights while tunes from rockers such as Tom Petty and Jimi Hendrix pierce the air.
For those seeking a closer encounter, the women, many resembling Playboy centerfolds, offer private lap dances -- at a $20 minimum -- on a leather-covered bench near a secluded spot in the back.
This revelation brought this from public servant extraordinaire, John McArdle:
Then, on Jan. 18, when pressed about Bruno's use of campaign funds at the hotel, and his activities while there, Bruno's office responded: "... a fundraiser was scheduled in Florida the following month, (and) a portion of the trip did involve meetings and talks with potential campaign contributors about supporting the Senate majority."
Bruno apparently gets to have it all ways, not just both.
Oh, and if you hard working federal prosecutors tire of investigating the purely tawdry, you could always look into this:
In 2001, the Board of Elections declined to investigate Bruno's use of more than $4,300 in campaign funds for extermination services, landscaping, and to buy a swimming pool cover at his property in Brunswick. Bruno said he has used the area for political events.
So, am I to assume that the feds are grilling Bruno's attorney's about this subject as well?
Soon to be Governor David Paterson holds his first press conference since this awful week began today at 2pm. He'll be speaking in the Red Room at the Capitol, the same room where Eliot Spitzer used to hold his pressers.
I thought it might worth digging out the video I shot at Reform Day in Albany last April. It shows an extremely bright, talented and very funny Lt. Governor, a man with an impressive grasp of reform issues and a man willing to level criticism at the very Executive branch of which he is a part. Paterson is a genuine reformer and it shows.
Garden State Equality's Legends Dinner is Saturday night and we had almost booked Eliot Spitzer, but a schedule conflict proved to be a snag. Among the other names we considered was Geraldine Ferraro, who today made such a reprehensible comment about Barack Obama. Oh my. Nearly 500 people attending Saturday night and all I can say is, whew.
The governor's resignation is appropriate. Eliot Spitzer has to take care of his family now and we must move forward and continue to govern and serve the 19 million people of this state. I have already been in continuous dialogue with Lt. Governor David Paterson, Speaker Sheldon Silver and Majority Leader Joe Bruno. We all remain focused on the business of government, including passing a fair, on-time budget.
The Senate Democratic Conference remains committed to finding ways to lower property taxes, create jobs in our communities and secure health care for all New Yorkers. Lt. Governor David Paterson, who will take the governorship on Monday, is a dear friend, former senate colleague and former leader of our conference, I have the utmost confidence in his ability to run state government. He has my full support during this transition. I look forward to working with him and New Yorkers will quickly learn that the state is in good hands.
Again, we must all keep the Spitzer family in our prayers.
Andrew Cuomo:
My thoughts and prayers are with the entire Spitzer family as they cope with this personal tragedy. Obviously, this is an extraordinarily difficult time for the family and for the entire state of New York. David Paterson, who has years of experience in state government, is a talented leader, a wonderful man, and a great friend. I look forward to working closely with Governor Paterson as he leads us forward. New York State faces many challenges and we have much work to do. Let us all work together, with a shared purpose, to make New York better for all its citizens.
More below (Bruno, Tedisco, O'Neill, DiNapoli, Clinton, Mondello).
This state is bigger than just one person. Eliot Spitzer's resignation was the only choice that would ensure that the needs of all residents are not lost as this scandal continues to unfold.
Gov. Spitzer's shocking and disturbing actions, for which he alone bears responsibility, has simply eliminated his ability to govern.
The budget is still due April 1 and this state simply could not afford to have the governing process continue to be hampered by Gov. Spitzer's legal and personal entanglements.
My thoughts and prayers are with the Spitzer family during this trying ordeal.
And I look forward to working with soon-to-be Governor David Paterson, a person with deep roots in Long Island, who appreciates the needs of our region and will help restore a sense of civility to the State Capitol.
Not anything that wasn't expected. He apologized to his family and to the people of New York for not living up to expectations.
Now, we must move on. This has hogged the attention over the last few days and rightfully so. We must continue working for the betterment of New York. Let's put this behind and forge ahead.
Well, this is awesome. With Eliot Spitzer's resignation expected today and effective Monday, we have a new governor: David Paterson.
We also have a new lieutenant governor: Joe Bruno.
The lieutenant governor fulfills the duties of the office of the governor whenever the governor is incapacitated or outside the state, per Article IV, paragraph 5 of the state constitution.
In case the governor is impeached, is absent from the state or is otherwise unable to discharge the powers and duties of the office of governor, the lieutenant-governor shall act as governor until the inability shall cease or until the term of the governor shall expire.
Joe Bruno is now the lieutenant governor. And that means that a man currently under Federal investigation for corruption will be, at various points over the next few years, the acting governor of the state of New York, whenever David Paterson leaves the state, say, to give testimony to Congress.
We just wasted the biggest electoral victory in the history of the state of New York. It's totally okay to begin throwing up right about now.
WNYC is reporting that Eliot Spitzer will indeed resign his office later today. David Paterson's father Basil is on his way to Albany to be present for the swearing in of his son.
More soon.
UPDATE: WNYC reports that while Eliot Spitzer will resign later today, that resignation will take effect on Monday, allowing David Paterson to build a transition staff.
Yesterday was beautiful, bright and crisp in Albany, with just the earliest hint of spring. But before I could even make my way to the Capitol to gather up a new pile of reaction statements, my cell phone was ringing from a place even nicer than this.
The call-back number said 202, for Washington. But the sunny voice on the other end could only be in Miami.
Yes, it was Roger Stone. And the exuberance in his voice made high-fiving Albanians sound almost morose.
"I didn't make him go to a prostitution ring," said the most famous and ruthless Republican dirty trickster who still walks the earth. "He did that all on his own."
Stone said that even before I asked if his hand was somehow in Spitzer's latest trouble. I figured, somehow or another, it had to be.
"No comment on that," Stone said. "I will say I knew it was coming. That's why I wasn't too upset about the results of the special election," where a Democrat grabbed a supposedly safe Republican State Senate seat, leaving Democrats just one vote shy of control.
Conversations with Stone often go like that. Always cocky. A little cryptic. Leaving you wondering about more.
Stone added later:
He set up a 527 political-hit committee. He's been shopping anti-Spitzer stories for months. He's been warning darkly about some "really ugly" stuff to come.
Even though there's no evidence he sent the governor to a hooker or made the Bush Justice Department follow up on a banking tip, he's been energetically working to undermine the governor.
And he may not be done.
"Everything's about to change," Stone said.
Well, sure.
Of course it is. Spitzer, mortally wounded, will almost certainly have to resign. Standing ready to take his place and make double-big history, too, Lt. Gov. David Paterson would be the first black governor of New York - and the first nearly blind one.
That wasn't what Stone meant.
"My work isn't done there," he said.
"Just watch."
Anyone else not surprised by this? He's trying to act like he knew all along. That's a little worrisome to say the least.
Gov. Eliot Spitzer on Tuesday holed up in his Manhattan apartment and prepared to resign Wednesday over a prostitution scandal that has rocked the state, according to a high-ranking aide.
In a strategy used to give his lawyers time to negotiate with federal officials, the aide said, Spitzer needed to hold onto the governorship as leverage to work out a deal involving criminal charges.
Another well-placed source in the Capitol also said Spitzer will likely step down Wednesday.
As some Republicans talked of impeachment and some Democrats were studying the process, too, the scandal-scarred Spitzer essentially remained executive an extra day before what most considered to be the inevitable end of his relatively brief tenure. Expectations were that he would leave it to Lt. Gov. David Paterson to serve out the nearly three years left in his term.
Paterson kept a low profile and prepared for the prospect of succeeding Spitzer, according to people close to the governor.
Spitzer's lawyer spent most of the day conferring with prosecutors with the U.S. Attorney's Office in a scandal that was still reverberating throughout a media-encircled Capitol a day after it exploded.
This kind of explains the easily arrived at perception of the continuing ineptitude of the Spitzer shop today. I mean, if you aren't going to pack it in, you need to get out in front and say so. They didn't and instead handed off to poor Lloyd Constantine to go run interference. It was hard to tell exactly what was happening, as an ineffectual performance by Spitzer's communications folks has sadly become something of par for the course. Those folks just never learned to shoot straight. Are they full of it, or incompetent? Today, as with many days before, it was hard to tell.
That said, it appears the "Steamroller" era in New York State, a mere 15 months after it began, is indeed almost over.
My command of the English language is not sufficient to properly describe the disappointment I feel at this moment. It just flat out didn't have to be this way.
That said, I want to wish all the best and to pledge my support to the man who will be New York State's chief executive by this time tomorrow, Lt. Governor David Paterson. You've got a hell of a job in front of you, Mr. Paterson. I feel I speak for many Democrats, for many of us interested in and committed to reforming our sad joke of state government, when I say, "let's get to work."
(Note: I had video of this, but it's not working for some reason. I'll try and get it up ASAP.)
On MSNBC today, Norah O'Donnell spoke with Alan Dershowitz, who knows Eliot Spitzer very well. Here's what he had to say.
"Because when men think with an organ other than their brain, no matter how smart you are, they tend to do very, very, very stupid things. Whether it's Bill Clinton or Thomas Jefferson or Franklin Roosevelt or John Kennedy or Lyndon Johnson. These are all people who greatly governed during the day and at night, behaved like adolescent boys. The point is sophisticated people in mature countries understand that you distinguish between personal problems that are family matters and matters of governance..."
In addition, this is what Dershowitz said about the case.
"I don't believe that story. I know it was in the New York Times but I will bet you anything when this becomes more investigated, we will find that this is a cover story. I know a lot about banking laws. I have represented a lot of people who have been involved in money laundering and structuring. This case smells. I believe that somebody must have dropped a dime on him and they started looking at his records..."
He continued:
"But I do not believe the cover story that appeared in the New York Times. I think that's a story that was put out by federal officials to cover what really went on here. The banks simply don't go around accidentally finding transactions of $15,000. What banks look for are $25 million being sent to the Caymans or structured deposits, money laundered money. This just didn't happen by happenstance. Somebody was looking at Eliot Spitzer."
That is an interesting assessment. I hope we hear more of this kind of talk in the future. This is too suspicious. Why Spitzer, and why now?
It should be today, I think, unless it could have been yesterday, but it looks like it won't be today:
Gov. Eliot Spitzer, who spent much of the day considering his options with close advisers, will not resign his office on Tuesday, according to a person involved in the discussions.
A top aide to Governor Spitzer said today Mr. Spitzer has not made up his mind about whether to step down from office despite mounting calls for his resignation amid allegations that he arranged to meet with a $4,300-a-night prostitute in the nation's capital on the eve of Valentine's Day.
"He has not made up his mind," a senior adviser to Mr. Spitzer, Lloyd Constantine, said. "It is more correct to say that he is not resigning."
The assessment of the governor's frame of mind by one of his closest associates conflicted with the general consensus in Albany, which is bracing for the downfall of New York's top Democrat and the assumption of power by the state's first African-American governor, David Paterson, who is in Albany.
A spokeswoman for the governor said Mr. Spitzer, who is secluded today with his family in his Upper East Side home, said he hadn't informed his staff of his decision.
Before I begin, I'd like to say that what Spitzer did was wrong and embarrassing. However, the way the prosecutors have conducted themselves seems highly questionable. I say in the title that it "stinks," and I based on what I know so far, I think that is a defensible comment.
Apparently, the investigation was launched when the IRS noticed that Spitzer was withdrawing large amounts of money from what appeared to be his personal bank accounts.
[I]n 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.
It is perfectly appropriate to launch an investigation of a high-level government official based on this information. Suspicious cash transactions could be the sign of criminal wrongdoing. However, it's what happened next that I have a problem with. First, the investigation was taken up by:
F.B.I. agents and federal prosecutors from Manhattan who specialize in political corruption.
These type of prosecutors are traditionally "very important people" who focus on very important cases involving breaches of the public trust. Their time is precious, and is typically not wasted on matters best left to State prosecutors or prosecutions not involving public corruption.
Credible sources have been saying since last night that the Governor would resign today and now it appears as if they were correct. Word has it that Lt. Governor Paterson is en route to Albany and that the "transition" we've been hearing about for almost 24 hours will begin shortly after his arrival.
The Eliot Spitzer era is over, or shall be very shortly.
Top aides to Gov. Eliot Spitzer said Tuesday morning that they expect the governor to resign his office, although the timing of the resignation remains uncertain.
Lt. Gov. David A. Paterson and his staff have begun laying the groundwork for him to take over as governor and are reaching out to members of the Legislature, the aides said.
The developments came a day after law enforcement officials said the governor was a client of a high-priced prostitution ring broken up last week by federal authorities.
At about noon, Mr. Paterson left his residence in Schenectady to travel to Albany. In Manhattan, security barriers were set up in front of Mr. Spitzer's Fifth Avenue residence, where more than 70 reporters crowded outside.
