Client-9
Spitzer was caught (and is likely to be prosecuted) under a relatively obscure statute called “structuring,” according to a Justice Department official.
Structuring involves creating a series of financial movements designed to obscure the true purpose of the payments.
Spitzer faces possible criminal charges because of his alleged structuring of payments to sham corporations set up by the international brothel, Emperors Club VIP, located in Cliffside Park, NJ.
Spitzer reportedly made a series of wire transfers - each in themselves totaling less than $10,000 - from an account at a North Fork Bank branch to a “front company” for the hooker outfit. He later asked the bank to remove his name from the transactions, sparking an IRS inquiry that ultimately led to an FBI corruption investigation.
Another source said that in late January, Mr Spitzer went to the Grand Central Station Office on Lexington Avenue, where he purchased two money orders for $1,000 each, and a third for $800.
If Spitzer, as suspected, used those funds to pay for prostitutes, he could be prosecuted under money-laundering statutes for financially supporting a criminal enterprise.