Eliot Spitzer

The fall of ethics man

A shocking descent from grace for Eliot Spitzer, New York state’s governor

ELIOT SPITZER made his mark as the “sheriff of Wall Street” and then as the steam-rolling governor of New York state. As the state’s attorney-general he came to prominence by holding New York’s powerful financiers to the highest of ethical standards and earned a reputation for zealously unearthing wrong-doers. So the revelations on Monday March 10th of his alleged connection to a prostitution ring caused jaws to drop and in some circles—mostly on Wall Street—cheers for Mr Spitzer’s come-uppance.

Mr Spitzer was reportedly caught arranging a rendezvous last month at a swanky hotel in Washington, DC, with a prostitute from Emperors Club VIP, a high-end call-girl business. Reports indicate that the FBI initially suspected that Mr Spitzer was involved in a case of public corruption that included a money-laundering scheme. This led federal agents to investigate the prostitution ring and begin electronic surveillance of his phone calls, texts and e-mails.

Federal prosecutors filed conspiracy charges on March 6th against four people who managed the up-market prostitution club. A 47-page affidavit outlining the evidence revealed that “clients” paid up to $5,500 an hour and as much as $31,000 a night for the club's services. But interest centred on one particular customer of the Emperor Club.

“Client 9” (reportedly Mr Spitzer) arranged to transport “Kristen…a petite, very pretty brunette” from New York to Washington, DC. In doing so, the governor apparently would have violated the Mann Act, which makes it a federal crime to transport a person across state lines to pay them for sex. The affidavit makes clear this was not the governor’s first “encounter”. After several calls to determine his existing credit with the club and whether or not his deposit had arrived, Mr Spitzer handed over $4,300 to “Kristen”. That sum included a down-payment for a future meeting.

What makes the allegations so extraordinary is that Mr Spitzer had forged a reputation as the epitome of the incorruptible lawman. He made his name nationally for his dogged targeting of Wall Street in search of legal and ethical wrong-doing. Time even anointed him “Crusader of the Year” in 2002, after his landmark settlement with securities firms accused of misleading investors.

It was this image that convinced voters to elect Mr Spitzer as governor of New York in 2006 with a sweeping mandate to clean up state affairs. He promised to battle corruption and to usher in a new era of ethical standards. The exposure of his hypocrisy is all the more poignant given that he busted at least two prostitution rings during his time as attorney-general.

Even before his latest, probably terminal, setback Mr Spitzer’s 14 months as governor had been tumultuous and marked by scandal and turmoil. He tried in vain to make good on a campaign promise to allow undocumented immigrants to apply for driver’s licences. Last summer, a feud between Mr Spitzer and the state legislature contributed to political gridlock. Even by New York state’s standards the feuding caused new lows of dysfunction. Mr Spitzer was accused of using state police to spy on political rivals. But now the man who was elected to shake up state politics is likely to lose his job and may face prosecution.

As if New York state needed more problems, the latest scandal will distract from, if not halt, state business. Mr Spitzer had been preparing for a fight to get his contentious budget passed by the state legislature later this month. The budget, as well as many of his other reforms, is now in serious jeopardy. Mr Spitzer’s self-destructive behaviour has shocked not only his closest advisers but even the most cynical of political commentators.

Mr Spitzer used a brief news conference on Monday to apologise to his family and the public but did not address his political future. But it is hard to see how he can remain in office. David Paterson, Mr Spitzer’s lieutenant-governor, is said to be preparing to assume his boss’s duties.