Spitler has a history of flim-flamming using shady campaign funds. Prosecutors have records of Spitzer's transactions, phone records and taped conversations with Emperors Club, and are confident they can nail him on violating prostitution laws and money-laundering..... and are also looking into whether Spitzer used campaign funds to pay for his pleasures.
BACKSTORY During Spitler's 1998 AG campaign, he indignantly denied allegations by his GOP opponent, Dennis Vacco (Vacco is a top-notch pro-life conservative), that Spitler's wealthy father had provided millions in loans to his campaign. Candidate Spitzer insisted he was using only his own money (family members are limited by law to $110,000 in total contributions). Spitler accused Vacco of "smearing" his father.
Not until he'd actually taken office did Spitzer admit that Dennis Vacco had been correct. In fact, it turned out Spitzer, despite earlier denials, had done the exact same thing during his unsuccessful 1994 run for AG.
Spitzer falsely claimed during his 1988 campaign that he secured a $5 million campaign loan by mortgaging eight apartments his billionaire developer-father had given him.
As the end of his campaign neared, Spitzer admitted that his father was actually paying off the loans and, therefore, financing his campaign - a possible election-law violation. "I didn't realize how necessary it was to be transparent about every personal financial transaction," Spitzer was quoted as saying in a magazine article.
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REFERENCE The Bernard & Anne Spitzer Charitable Trust Inc.
(Formerly: The Bernard & Anne Spitzer Foundation Inc.)
730 5th Ave----Suite 2202
New York, NY 10019-4105
Telephone: (212) 765-5170
Bernard Spitzer, President; Anne Spitzer, Treasurer.
Board members--Eliot and his brother Dr Daniel Spitzer.
Type of foundation: Independent
Fiscal Date: 12/31/05
Assets: $35,115,418 Total Giving: $578,663
EIN:137298842
Most Recent IRS Filing:
View 0990 FORM http://72.14.205.104/search?q=cache:l2QSwTcRe2YJ:foundationcenter.org/cgi-bin/ffindershow.cgi%3Fid%3DSPIT004
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Emigre Mark Brener, charged with running the hooker ring, has been held without bail since his arrest on March 6, charged with violations of the Mann Act, money laundering conspiracy and conspiracy to commit interstate transportation in aid of racketeering.
Brener's money-laundering conspiracy, and interstate racketeering could involve one heck of a lot more than johns and whores.
CONNECT THE DOTS Brener's IRS connections, his offshore connections, and far-flung prostitution in New York, Washington, Miami, London and Paris.
Emperor's Club hookers supposedly costing $1,000-$5,500 an hour, were paid for with cash, credit card, wire transfers or money orders. That raises enormous questions about money laundering, IRS fraud and evasion of US banking laws.
On the surface, emigre Brener ran the $5500-an-hour hooker operation and is the alleged mastermind of the high-end Emperors Club.
But Brener was also working another operation---he was certified by the IRS to represent US taxpayers in disputes AND Brener also once worked for the Israeli national tax collection agency.
Brener knew the ropes.
The hooker operation could have facilitated tax evasion through crooked accounting, and/or faking high-priced trysts, then depositing the monies in friendly offshore banks to evade the IRS and US banking laws.......and in Spitzer's case evading the FEC.
Friendly banks might then wire transfer monies on which no taxes were paid to other accounts.
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The beginning of Spitzer’s end can be traced to three banking transfers that left his personal account at the North Fork Bank in New York last spring and summer. For reasons that have not been satisfactorily explained, these payments totaling $15,000 attracted the attention of bank employees who monitor accounts for signs of suspicious activity. (NOTE: After 911, money-laundering laws were significantly tightened, requiring banks to file so-called “suspicious activity reports” whenever there is evidence that clients might be trying to sidestep routine regulations).
Spitzer’s money transfers to a company called QAT International Inc – later revealed to be a front for the Emperors Club – were reportedly considered by the bank to be an attempt to avoid another law that requires all transactions over $10,000 to be reported to the US Treasury.
Breaking down payments with intent to avoid US Treasury reporting is an offense known as “structuring.”
Then-Gov Spitzer’s administration has also been connected to a sophisticated "destroyer program" that erases computer hard drives.
Thanks!