Democrats - United States

NY governor caught in sex scandal

Monday 10 March 2008

Democratic New York Governor Eliot Spitzer issued a public apology but stopped short of resigning after the New York Times revealed he was involved in a high-end prostitution ring.

New York Governor Eliot Spitzer, a Democrat known for his moral crusading, issued a public apology but stopped short of resigning Monday amid reports he was involved in a high-end prostitution ring.
   
Spitzer, a father of three who built his career fighting corporate corruption as New York state attorney general, issued only a brief statement after the reports broke, saying he had failed to live up to his own standards.
   
"I have acted in a way that violates my obligations to my family, that violates my or any sense of right and wrong," Spitzer told reporters.
   
"I apologize first and most importantly to my family. I apologize to the public, whom I promised better," he said. "I must now dedicate some time to regain the trust of my family."
   
According to the New York Times, Spitzer was caught on a federal wiretap arranging to meet a high-end prostitute at a Washington hotel last month.
   
The call was believed to have been made to an exclusive ring known as the "Emperor's Club VIP," which was broken up by New York authorities last week.
   
According to prosecutors, the ring operated in cities across the United States and in London and Paris, employing more than 50 prostitutes who charged clients fees ranging from 1,000 dollars to more than 5,500 dollars per hour.
   
The club even offered clients the option of paying with cash, credit card, wire transfer or money order, selling the prostitutes' services through a website that ranked each of them on a system of one to seven diamonds.
   
Spitzer, 48, a former New York state attorney general, became governor in January last year pledging to bring ethics reform.
   
His time in office, however, has been marked notably by a scandal involving the use of state police to keep tabs on Republican state senate majority leader Joseph Bruno.
   
Spitzer, whose crusade against Wall Street wrongdoers earned him a reputation as the country's toughest corporate cop, also prosecuted at least two prostitution rings during his time as attorney general.
   
According to the New York Times, in one such case in 2004 Spitzer spoke with revulsion and anger after announcing the arrest of 16 people for operating a high-end prostitution ring.
   
"This was a sophisticated and lucrative operation with a multi-tiered management structure," Spitzer was reported to have said at the time.
   
At his inauguration as governor in 2007, he used his address to say "we must transform our government so that it is as ethical and wise as all of New York."
   
When he first became attorney general, Spitzer was best known for locking horns with the Gambino Mafia crime family to break their hold on the New York and New Jersey waterfronts.
   
But it was his decision to take on Wall Street that turned him into a crusading celebrity.
   
In May 2002, he led a spectacular victory over the Wall Street titan Merrill Lynch, which paid 100 million dollars to settle charges that it advised clients to buy stocks it secretly believed were "junk."
   
And in December of the same year, he helped wring 1.4 billion dollars out of top Wall Street banks and brokers for stock research abuses. His other targets ranged from the music industry to major insurance carriers.