How does a top government official… a former crime-fighter… get caught engaging in unsavory, illegal activity? Leave it up to the IRS to be the reason New York Governor Eliot Spitzer has been exposed.
ABC News is reporting that the federal investigation of the prostitution ring that Spitzer was allegedly patronizing was sparked by his transfers of money to a company called QAT. A bank reported the “suspicious” financial activity to the IRS, and the investigation began.
The Feds initially thought that Spitzer was hiding bribes, but learned within a few months of starting their investigation that the payments were for services from the prostitution operation Emperors Club.
Spitzer is allegedly “Client 9,” who paid for train tickets, cab fare, a hotel, room service, travel time for a prostitute called “Kristen” around Valentine’s Day.
The irony here is obvious: Spitzer is known for aggressively prosecuting financial crimes while attorney general of New York. Now he may be prosecuted for financial crimes as a result of his alleged use of the escort service. It’s almost unbelievable how someone so versed in the prosecution of financial crimes would create a financial paper trail for the feds to follow in their investigation of these crimes.