Spitzer Avoids Prosecution

Former New York Gov. Eliot Spitzer has avoided criminal charges for his well-publicized escapades with sex workers while in office. Largely responsible for the development was a decision by federal prosecutors to investigate Spitzer on questionable financial transactions—where they found no evidence of misuse—rather than the more titillating accusation of “transporting prostitutes across state lines.”

The Business Review:

The U.S. Attorney in Manhattan won’t file criminal charges against former New York Gov. Eliot Spitzer for his involvement in a prostitution ring.

The state’s 54th chief executive resigned March 17 amid allegations that he was a client in the Emperors Club VIP. He could have been charged with the Mann Act, which prohibits transporting prostitutes across state lines, but federal prosecutors instead investigated him on questionable financial transactions.

An investigation by the FBI and the IRS’ Criminal Investigation Division determined that Spitzer made payments to bank accounts, one named QAT Consulting, that had been used to launder more than $1 million worth of criminal proceeds derived from the Emperors Club VIP’s prostitution business, according to U.S. Attorney Michael Garcia.

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Investigators believe Spitzer paid as much as $80,000 for prostitutes over a period of several years — first while he was New York’s attorney general and later as governor.