N.Y. Gov. Linked To Prostitute

(CBS/AP)  Gov. Eliot Spitzer, the crusading politician who built his career on rooting out corruption, apologized Monday after he was accused of involvement in a prostitution ring. He did not elaborate on the scandal, which drew calls for his resignation.

His stoic wife at his side, Spitzer

told reporters

at a hastily called news conference: "I have acted in a way that violates my obligations to my family."

"I have disappointed and failed to live up to the standard I expected of myself," he said. "I must now dedicate some time to regain the trust of my family."

Spitzer's involvement in the ring was caught on a federal wiretap as part of an investigation opened in recent months, according to a law enforcement official who spoke to The Associated Press on condition of anonymity because of the ongoing inquiry.

The New York Democrat, identified in legal papers as "Client 9," met last month with at least one woman in a Washington hotel, the law enforcement official said.

Law enforcement officials who have been briefed on the case tell CBS News the Washington rendezvous captured by a federal wiretap happened in Room 871 at the Mayflower Hotel in Washington.

CBS News has confirmed that the name "George Fox" was used to book a room at the hotel. Fox is described as a campaign donor to Spitzer.

CBS News reports the case began as an IRS investigation into possible money laundering. The IRS brought the FBI into the case several months ago because one of the money streams involved a high-ranking government official and that suggested possible government corruption.

Spitzer's name first surfaced last summer when IRS agents traced one particular money stream to Spitzer, according to law enforcement officials. The IRS watched as money was taken from Spitzer's accounts and through convoluted transfers made it into the account of the escort service. By the time the deposits were made there, Spitzer's name was not attached to the payments.

Even though he is not currently under indictment, the officials say Spitzer's actions do expose him to possible criminal liability stemming from those transactions involving possible violations of tax laws, banking laws and money laundering. It falls under laws relating to what's called "the structuring of payments."

The prostitution ring, identified in court papers as the Emperors Club VIP, arranged connections between wealthy men and more than 50 prostitutes in New York, Washington, D.C., Los Angeles, Miami, London and Paris, prosecutors said. Four people allegedly connected to the high-end ring were arrested last week.

The club's Web site displays photographs of scantily clad women with their faces hidden. It also shows hourly rates depending on whether the prostitutes were rated with one diamond, the lowest ranking, or seven diamonds, the highest. The most highly ranked prostitutes cost $5,500 an hour, prosecutors said.

"Spitzer is the latest in a long line of politicians caught up in scandal but for a man who made his reputation as a crime-busting attorney general and ethics crusader, allegations such as these are even more damaging for Spitzer," said CBSNews.com senior political editor Vaughn Ververs.

The scandal was first reported on The New York Times' Web site. (Read the report.)

Spitzer spoke hours later. Stunned lawmakers gathered around televisions at the state Capitol in Albany to watch, and a media mob gathered outside the office of Lt. Gov. David Paterson, who would become governor if Spitzer was to resign. It took opponents only minutes to call for his resignation.

"Today's news that Eliot Spitzer was likely involved with a prostitution ring and his refusal to deny it leads to one inescapable conclusion: He has disgraced his office and the entire state of New York," said Assembly Republican leader James Tedisco. "He should resign his office immediately."

Spitzer, 48, built his political reputation on rooting out corruption, including several headline-making battles with Wall Street while serving as attorney general. He stormed into the governor's office in 2006 with a historic share of the vote, vowing to continue his no-nonsense approach to fixing one of the nation's worst governments.

Time magazine had named him "Crusader of the Year" when he was attorney general and the tabloids proclaimed him "Eliot Ness."

But his term as governor has been marred by problems, including an unpopular plan to grant driver's licenses to illegal immigrants and a plot by his aides to smear Spitzer's main Republican nemesis.

Spitzer had been expected to testify to the state Public Integrity Commission he had created to answer for his role in the scandal, in which his aides were accused of misusing state police to compile travel records to embarrass Senate Republican leader Joseph Bruno.

Spitzer had served two terms as attorney general where he pursued criminal and civil cases and cracked down on misconduct and conflicts of interests on Wall Street and in corporate America. He had previously been a prosecutor in the Manhattan District Attorney's Office, handling organized crime and white-collar crime cases.

His cases as state attorney general included a few criminal prosecutions of prostitution rings and into tourism involving prostitutes.

In 2004, he was part of an investigation of an escort service in New York City that resulted in the arrest of 18 people on charges of promoting prostitution and related charges.

[amyblue45]

It took until the fifth paragraph before the article stated that Spitzer was a Democrat, and the only time his affiliation was mentioned in the entire article.So tired to read these!I will go to the EquestrianCupid.com/photo/girl. to have fun!

[nothappyatall]

"(get a life---anyone thats up at 3:55 am posting doesn''''t have a life)
Posted by william19491 "

The time stamp does NOT indicate the posters local time, it is the CBS new site server''s time, its sure not accurate for my time.

[nothappyatall]

have shown themselves to be the do nothing robber barons I said they were. Now this Hypocrite Demonrat Governor proves my point.
Posted by thgdriver"

Hes a hypocrit obviously, but I for one dont view CONSENTUAL prostitution a crime, not when the lady is paid $5,500 AN HOUR!!!!! how many weeks would she have to work as a secretary for that amount?
That type of prostitution should be legalized and TAXED, I have no problem with it.

"When its a Republican - theyre all giddy with finger pointing..

When its a Democrat - totally different reaction

Liberals - hypocrisy squared
Posted by dogsoul"

Only becuase the repubiCONS are the ones advertising themselves as the HIGH AND MIGHTY GOD AND FAMILY VALUES, honest Abe types, morally beyond reproach- the very ones screaming about porn, contraceptives, gezus and the bibull are often the ones CAUGHT with 50,000 images of child porn and diddling little boys.

Its the RepububiCONS who claim a god-like life, Democraps just live their lives and dont make such rediculous claims.

[woodchuck46]

I am real curious to know why Spitzer is the only one being brought up in this matter. I''m sure that if he was involved then there is many more. and also feel that everbody should be treated the same way. If there is anybody else in political office involved then they should be prosecuted as well

[kikhimout]

As I raised my own three beautiful, intelligent daughters in a suburb of D.C., I was told many times by my Republican lobbyist husband that I was crazy to think he was unfaithful. So for years I treated him with love, respect and devotion, hitting the bedroom at first wink, cooking a nice dinner every Friday night before he left for his standing poker game in Vienna, Va, which always wrapped with a visit to his ladies downtown or near the Silver Hill Fire Department in Maryland... depending on the amount of $$ he had won, I guess. I have always prided myself on my intelligence, intuition, foresight, ability to read people... but nothing prepared me for the knowledge that came to me one day -- my supposedly loving, faithful husband had gotten arrested (for the 3rd time, I later learned) for soliciting oral *** from a police officer in Orlando. Until then, our intimate life was perfect. Afterwards, forget it. He begged for forgiveness, so I gave him ONE second chance. He got religion, became a PromiseKeeper, but I found out four years later he''d never given it up -- the drug addicted ****** that threatened the health and well-being of me and my three daughters. No 3rd chance. I kicked him out the night I discovered what a lying loser he was... took the kids and moved south. Now I''m remarried to a man who has opened my eyes to a love and a life I never imagined was attainable. Not all of us stand by our small-minded, emotionally-stunted boy "husbands"

[ebsharp10]

Client 9 Must Resign!

[wshier1]

Something''s never change. For eight years Bill and Hillary Clinton dragged us through a whole cesspool of sleaze. Now Hilary is associated with this mess, she was endorsed by and received finance from Spitzer. This is type of conduct we would have to look forward to with her in the White House. While New Yorkers might find all this acceptable, the rest of America may not.

For once we have a chance to throw the bums out and change the system. With Obama, ''YES WE CAN''.

[neoconrcrazy]

well, at least we know he''s not a pedophile, and he doesn''t seems attracted to other men in rest rooms, so what? he likes s e x with unknown women....what could be more exciting?

[blackyowe]

He makes my skin crawl he sounds like a accident lawyer when he talks. I hope he resigns and I am a Democrat! I was not happy when he was the one running for Gov. -Number 9, calling number 9! Hey Eliot, instead of the Scarlet letter you have a Scarlet number 9 on your forehead! Jerk!

[samthetvcat]

Oh, okay no it was apparently a bank who tipped off the IRS, and banks have a legal obligation to report any suspicious activity to law enforcement. The IRS apparently thought he might have been laundering bribes . . .