Spitzer Not Resigning Today; Lawyers Working on Deal

2008_03_spitzapt.JPG
Top photograph of media outside of Spitzer's apartment building by Luna Park on Flickr; lower photograph of 985 Fifth Avenue from City Review

After expectations/hopes that Governor Eliot Spitzer would step down today, one of his top aides, Lloyd Constantine, denied a resignation was happening any time soon, "I have seen press reports that the governor’s resignation is imminent, and that is not true." Well, as long as he's governor, Spitzer's still super - superdelegate, that is.

His lawyers are reportedly working on a plea deal with prosecutors. Per Newsday, "one serious bargaining chip that Spitzer has to possibly avoid being charged with a serious felony, such as money laundering or avoiding federal currency rules, is to work out a deal in which he would give up the governorship." Paul, Weiss lawyer Michele Hirshman is representing Spitzer; her bio reads, "Ms. Hirshman comes to Paul, Weiss from the New York Office of the Attorney General where she served as first deputy attorney general under then Attorney General Eliot Spitzer."

2008_03_985fifth.jpgAnd, so, the media must continue their vigil outside Spitzer's apartment at 985 Fifth Avenue. An Observer reporter overheard one mother explain the fuss to a toddler, "It's nothing, sweetie. That's just where the soon-to-be ex-governor lives."

The post-war rental building (built on what were four townhouses) is owned by Spitzer's father, real estate developer Bernard Spitzer, and Spitzer's apartment has at least 3 bedrooms, 4 baths, and balcony (rent would be $16,000-20,000 but he's there rent-free). The building, which is not a "Good Building", does have individual storage bins, hides its AC units behind grills and allows pets.

Up in Albany, State Senate minority leader Malcolm Smith says he, State Senate Majority Leader Joe Bruno, and Assembly Speaker Sheldon Silver are working on a budget. He added, "I have not spoken to the governor at all. I have spoken to the Lt Gov. quite a bit." Someone who has spoken to Spitzer is Mayor Bloomberg: "I did talk to Gov. Spitzer this morning and I told him my thoughts were with him and wished him all the best. ... I did wish him all the best and told him I was thinking about him and his family."

And back to Spitzer's own mess, a source tells WNBC that Spitzer spent at least $15,000 on hookers from the Emperor's Club VIP over the course of a year. Newsday reports Spitzer had at least 7 trysts with Emperor's Club prostitutes, some in DC and Florida, over the course of several years.

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It is an outrage that he has not yet stepped down. I hope they impeach him, or at least call a special session. The prostitution angle is the tip of the iceberg in this scandal. The real case is federal money laundering and conspiracy. Spitz engaged in financial transactions concealing the identity, source and destinations of the money he used to pay for the illegal sex.

While the scale of his activities has yet to be fully investigated/examined/or made public, consider that they must be significant if his bank notified the feds. And that three quarters of a year later he was still engaged in the activity the night before Valentine's Day, is also significant. He likely had many many transactions for at least the past year.

How were they financed? Was he on the take? What about the involvement of George Fox, who has contributed $140k to Spitz over the years, the name he used at the hotel, and head of some wall street finance outfit? Do they do business with the state? What other names will surface and what is the extent of this scandal?

This is not about prostitution at all. It should soon play out to be a significant federal racketeering case. It definitely involves public official corruption. And those public RICO cases seemingly always start with a relatively minor and unrelated criminal case (the underlying prostitution case which Gov has not been charged).

That is why he hired Hirschman. She is a whiny beast with RICO experience out of the Southern District.

The fact that he and his attorneys are likely leveraging his position as governor in attempting to settle this with the feds enrages me more than anything. It epitomizes contempt for the taxpayers.

What would happen if you or I were involved in the above? Federal indictment, that's what. The fucking jerk ought to step down immediately.

Spitzer's mess made my day a happy one. I get so much joy from seeing hypocrisy exposed, especially in such a bully. How does it feel to have that bully pulpit land on your head? I'm guessing daddy Bernard's dream of his little boy in the White House is over. Maybe one of your girls? Assuming, of course, that they don't take example from their father and decide being prostitutes is ok. That would be awesome.

"The fact that he and his attorneys are likely leveraging his position as governor in attempting to settle this with the feds enrages me more than anything. It epitomizes contempt for the taxpayers. "

Amen to that you are right on the money

I want to see this clown hang out to dry big time

"It's nothing, sweetie. That's just where the soon-to-be ex-governor lives."

Sounds like a Scott Templeton "quote."

Oh, c'mon now, cut the drama. This situation isn't going away anytime soon, and whether he resigns today or a week from today isn't going to matter. We often wait several months, if not longer, for criminal cases to go forward. Many people feel this is a victimless crime--and while it is a crime and he should resign (and almost certainly will)-- whether that happens now or tomorrow or the day after makes no difference. Speculating that he was doing this with government funds is just that- speculation. Spitzer has plenty of money, and there's no reason to think he was paying for this out of government coffers-- all the reports seem to indicate personal accounts. Guilty of being a hypocrit, and of paying for sex? sounds like it. But let's not act like he's public enemy number one here. Just a stupid self-centered idiot who self-destructed over sex. Happens all the time.

It was just reported on Lou Dobbs tonight that the head of the prostitution ring may have ties to the IRS, either as a former agent or a former investigator. Dobbs speculated on how this connects to Spitzer, being that the investigation comes out of the IRS.

So maybe that Daily Kos diary I mentioned earlier isn't so desperate after all.

BTW, is Spitzer gone yet?

Spitzer's like Ben Linus on Lost...no matter what happens to him, he's still got all the cards...

www.forgotten-ny.com

I am outraged—OUTRAGED that I pay more rent than Spitzer.

Spitzer either has some stugats or is just a stunad.
What is the over/under on him offing himself at a news conference? That was done back in the 80s by some politician guy who was indicted. Saw the tape once the guy had a news conference, pulled the gun out stuck it in his mouth and bam live on the news. That took some real stugats to do.

I am not a punish for the sins of the father type, but he should indicted for what his Dad did to the corner of 5th and 79th and those Brokaw townhouses.

@colleenMM Sounds like a Scott Templeton "quote."

I thought exactly the same thing... so much so that I clicked through to try to find the source in the original article. Maybe McNulty phoned it in.

I just can't fathom this. The highest office in New York. That's gotta be at least top 50 most powerful positions in the world and he blows it all up for a exchange of fluids and that's it. this has got to be one of the biggest downfalls ever. He's trumped Leona Helmsley, Bernard Kerik, Daryl strawberry, Marion Jones, that guy who wasn't lance armstrong who won the tour de france.

A deal? Working out a deal? Here's the deal...resign, get the hell out, and maybe, just maybe we wont arrest you and put you in a holding cell for the FELONY you have committed - apparently numerous times. What kind of deal is he trying? A pension plan? Severance pay? Unemployment? A good job reference? Some more tax dollars going to this criminal in return for him volunteering to step down? Ridiculous. He should go immediately, without pay. You're fired, and don't let the door hit you on the way out.

Why can't these guys just keep it in their pants? What? The seal of the governor of New York state isn't a big enough Codpiece? Dude!

Eliott Spitzer's a rich TRICK.

Goomba,

I have watched that clip and it is total nightmare fuel. He was from PA and it was seriously effed up. It is on YouTube if people have morbid curiousity...unfortunately I did.

Goomba

He's so stunad he not know he is dead in the water

No pity the fool

"I am not a punish for the sins of the father type, but he should indicted for what his Dad did to the corner of 5th and 79th and those Brokaw townhouses."

-Touche. That made my night.

Instead of getting all bent out of shape, why doesn't America move into the 21st Century?

Sex? People have it. With husbands, wives, hookers, dudes in the Macy's bathroom. It's a fact of life.

Drugs? People do them. Even politicians! People are what they are. The sooner we accept that and stop trying to live up to some absurd Puritan ideals entrenched here in the 1600's, the sooner we'll get some honest politicians.

I know that will never happen.

I had always wondered about that building on Fifth Ave. at 79th St.

Now I am really wondering.

Goomba evoking the ghost of R. Budd Dwyer. The fond memories of the 80s.

The plea idea sounds like a scam to buy time to figure out a way not to resign. Why would the Feds care whether he resigns or not? Aren't they interested in cutting a deal when the perp can lead them to more perps? Whether Spitzer is governor or not doesn't help their case in prosecuting others, does it?

Hey, emilydickinson, this isn't about prostitution. I personally think it should be legal, I'm sure many here agree. It's about someone who rode a very high horse and ruined people's lives -- including those involved in a prostitution ring -- all while patronizing prostitutes. He made The Law and ethics his trademark, it's only right that he also die by that sword.

It is too rich that the Governor's spokesman is named "Errol Cockfield:" Positively Dickensian.

the tip of the iceberg!

Nice try, Eldarta. Being connected to otherwise unlikeable IRS does not instantly impugn one's credibility. Same cannot be said of loony Kossacks & their friends.

What took so long to discover that Eliot was Bernard's baby? NYT Magazine did a good investigative work on those two money-bags long time ago.

Elderta, I missed that segment on Lou Dobbs and I can't find anything online yet about this IRS connection. If you find anything, please link it here. But in the intervening time, what does this really mean if the bank was the one that got the ball rolling by flagging the transactions and then notifying the IRS? Excuse me, Spitzer seeing prostitutes and moving money to shell companies is what got this started. Sorry, couldn't resist. Anyway, are we suggesting the bank acted on a tip?

Thanx, westernqueensland!! The irony in that Times article practically drips from the page. I knew that he'd hunted down & prosecuted johns-- just couldn't remember the details. And poor, poor Errol Cockfield.... this scandal's totally gonna haunt him (his name and his days) for quite a while; almost like he's being punished!! Still, there's a sick(o) kinda sweetness to this entire denouement. Unless you're Spitzer's wife &/or daughters, that is.

I think the most enraging thing about about Eliot Spitzer's mess is that he used our money to finance his illegal activities and our money which will keep him in comfort for the rest of his days.....we should hit him in the same way he hit us....In the pocketbook....Public servents should be protectors of the law, not above it!

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