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On March 10, 2008, ''
The New York Times ''The New York Times'' (''NYT'') is an American daily newspaper based in New York City. ''The New York Times'' covers domestic, national, and international news, and publishes opinion pieces, investigative reports, and reviews. As one of ...
'' reported that
Eliot Spitzer Eliot Laurence Spitzer (born June 10, 1959) is an American politician and attorney who served as the 54th governor of New York from 2007 until his resignation in 2008 after a prostitution scandal. A member of the Democratic Party, he was also ...
,
Governor of New York The governor of New York is the head of government of the U.S. state of New York. The governor is the head of the executive branch of New York's state government and the commander-in-chief of the state's military forces. The governor ...
, had patronized a prostitution ring run by an
escort agency An escort agency is a company that provides escorts for clients, usually for sexual services. The agency typically arranges a meeting between one of its escorts and the client at the customer's house or hotel room (outcall), or at the escort' ...
known as Emperors Club VIP. During the course of an investigation into the escort agency, the federal government became aware of Spitzer's involvement with prostitutes due to a wiretap. Following the public disclosure of his actions, Spitzer resigned as governor effective March 17, 2008.


Emperors Club VIP

Emperors Club VIP was an international
escort agency An escort agency is a company that provides escorts for clients, usually for sexual services. The agency typically arranges a meeting between one of its escorts and the client at the customer's house or hotel room (outcall), or at the escort' ...
based in
New York City New York, often called New York City (NYC), is the most populous city in the United States, located at the southern tip of New York State on one of the world's largest natural harbors. The city comprises five boroughs, each coextensive w ...
, founded in 2004 by Israeli national Mark Brener and his partner, Cecil Suwal and operated from the bank accounts of QAT Consulting Group, Inc., and QAT International, Inc. Emperors Club VIP offered, via their internet website, the services of fifty escorts rated on a scale from three to seven diamonds for appointments in New York, Washington, Miami,
London London is the Capital city, capital and List of urban areas in the United Kingdom, largest city of both England and the United Kingdom, with a population of in . London metropolitan area, Its wider metropolitan area is the largest in Wester ...
and
Paris Paris () is the Capital city, capital and List of communes in France with over 20,000 inhabitants, largest city of France. With an estimated population of 2,048,472 residents in January 2025 in an area of more than , Paris is the List of ci ...
, with fees commensurate with their rating. Appointments could be made by telephone or online with fees from
US$ The United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introdu ...
1,000 to US$5,500 per hour, payable by cash, credit card,
money order A money order is a directive to pay a pre-specified amount of money from prepaid funds, making it a more trusted method of payment than a cheque. History Systems similar to modern money orders can be traced back centuries. Paper documents known ...
or
wire transfer Wire transfer, bank transfer, or credit transfer, is a method of electronic funds transfer from one person or entity to another. A wire transfer can be made from one bank account to another bank account, or through a transfer of cash at a cash ...
. A top-rated seven-diamond model could cost as much as US$31,000 per day. The agency was shut down in March 2008 following a federal investigation into suspicious money transfers.


Alleged clients

*New York governor Eliot Spitzer was identified as having procured services in excess of US$80,000 from Emperors Club VIP over a period of two years. After campaigning on promises of ethics and integrity, and himself having prosecuted prostitution rings in his career, Spitzer was forced to resign as governor amid charges of hypocrisy and threats of
impeachment Impeachment is a process by which a legislative body or other legally constituted tribunal initiates charges against a public official for misconduct. It may be understood as a unique process involving both political and legal elements. In Eur ...
. *The United Kingdom's then 3rd wealthiest man, the
Gerald Grosvenor, 6th Duke of Westminster Major General Gerald Cavendish Grosvenor, 6th Duke of Westminster (22 December 1951 – 9 August 2016) was a British landowner, businessman, aristocrat, Territorial Army general, and peer. He was the son of Robert Grosvenor, 5th Duke of West ...
, was alleged by former Emperors Club VIP escort Zana Brazdek to have engaged her services through the company. Attorneys responding on his behalf hold that the Duke was not in London on the dates she reports.


Investigations

The investigation of Spitzer was initiated after
North Fork Bank North Fork Bank was an American bank that operated from 1950 until 2008 when it was acquired by Capital One Bank and was merged into that bank. In November 2007, it had 365 branches in the New York metropolitan area. History North Fork early h ...
reported suspicious transactions to the Treasury Department's
Financial Crimes Enforcement Network The Financial Crimes Enforcement Network (FinCEN) is a bureau within the United States Department of the Treasury that collects and analyzes information about financial transactions to combat domestic and international money laundering, terrori ...
as required by the
Bank Secrecy Act The Bank Secrecy Act of 1970 (BSA), also known as the Currency and Foreign Transactions Reporting Act, is a U.S. law requiring financial institutions in the United States to assist U.S. government agencies in detecting and preventing money laun ...
, which was enhanced by Patriot Act provisions, enacted to combat terrorist activity such as money laundering. Spitzer had at least seven liaisons with prostitutes from the Emperors Club over six months, and paid more than $15,000 for their services. Federal agents had him under surveillance twice in 2008. According to published reports, investigators believe Spitzer paid up to $80,000 for prostitutes over a period of several years – first while he was attorney general, and later as governor. Governor Spitzer, referred to as "Client 9" in an
affidavit An ( ; Medieval Latin for "he has declared under oath") is a written statement voluntarily made by an ''affiant'' or ''deposition (law), deponent'' under an oath or affirmation which is administered by a person who is authorized to do so by la ...
filed in US Federal Court, arranged to meet at the
Mayflower Hotel The Mayflower Hotel is a historic hotel in downtown Washington, D.C., located on Connecticut Avenue NW. It is two blocks north of Farragut Square and one block north of the Farragut North (Washington Metro), Farragut North Washington Metro, Me ...
in
Washington Washington most commonly refers to: * George Washington (1732–1799), the first president of the United States * Washington (state), a state in the Pacific Northwest of the United States * Washington, D.C., the capital of the United States ** A ...
on February 13, 2008, with a prostitute named "Kristen". "Kristen" was later identified as 22-year-old Ashley Dupré. She intended to travel from New York City for the planned tryst and Spitzer agreed in advance that he "would be paying for everything—train tickets, cab fare from the hotel and back,
mini-bar A minibar is a small refrigerator, typically an absorption refrigerator, in a hotel room or cruise ship stateroom. The hotel staff fill it with drinks and snacks for the guest to purchase during their stay. It is stocked with a precise inventor ...
or room service, travel time and hotel". After the meeting on February 13, 2008, Spitzer paid her $4,300 in cash. The payment included $1,100 as a deposit toward future services to be provided by the Emperors Club. Room 871 at the
Mayflower Hotel The Mayflower Hotel is a historic hotel in downtown Washington, D.C., located on Connecticut Avenue NW. It is two blocks north of Farragut Square and one block north of the Farragut North (Washington Metro), Farragut North Washington Metro, Me ...
was booked under the name George Fox, a pseudonym that was allegedly the name of his close friend, a
hedge fund A hedge fund is a Pooling (resource management), pooled investment fund that holds Market liquidity, liquid assets and that makes use of complex trader (finance), trading and risk management techniques to aim to improve investment performance and ...
investor. Some of this information came to light from a
United States Department of Justice The United States Department of Justice (DOJ), also known as the Justice Department, is a United States federal executive departments, federal executive department of the U.S. government that oversees the domestic enforcement of Law of the Unite ...
wiretap Wiretapping, also known as wire tapping or telephone tapping, is the monitoring of telephone and Internet-based conversations by a third party, often by covert means. The wire tap received its name because, historically, the monitoring connecti ...
. According to ''
Newsday ''Newsday'' is a daily newspaper in the United States primarily serving Nassau and Suffolk counties on Long Island, although it is also sold throughout the New York metropolitan area. The slogan of the newspaper is "Newsday, Your Eye on LI" ...
'', Spitzer wanted to transfer more than $10,000 to a front company for the prostitution ring. However, he broke up the transactions into smaller slices due to federal law requiring the reporting of any transfer of $10,000 or more. When he tried to get his name taken off the wires, the bank refused, saying that the money had already been wired out and that it would be improper to do so in any case. The
IRS Criminal Investigation Division Internal Revenue Service, Criminal Investigation (IRS-CI) is the United States federal law enforcement agency responsible for investigating potential criminal violations of the U.S. Internal Revenue Code and related financial crimes, such as mone ...
then began a probe, initially fearing that Spitzer was the victim of either
extortion Extortion is the practice of obtaining benefit (e.g., money or goods) through coercion. In most jurisdictions it is likely to constitute a criminal offence. Robbery is the simplest and most common form of extortion, although making unfounded ...
or
identity theft Identity theft, identity piracy or identity infringement occurs when someone uses another's personal identifying information, like their name, identifying number, or credit card number, without their permission, to commit fraud or other crimes. ...
. North Fork's report in July 2007 went largely unnoticed until
HSBC HSBC Holdings plc ( zh, t_hk=滙豐; initialism from its founding member The Hongkong and Shanghai Banking Corporation) is a British universal bank and financial services group headquartered in London, England, with historical and business li ...
filed a report in the fall that the transactions were going to QAT International and QAT Consulting Group, which were offshore
shell companies A shell corporation is a company or corporation with no significant assets or operations often formed to obtain financing before beginning business. Shell companies were primarily vehicles for lawfully hiding the identity of their beneficial ...
operating as a front for the Emperors Club VIP. Later, the IRS contacted the
FBI The Federal Bureau of Investigation (FBI) is the domestic Intelligence agency, intelligence and Security agency, security service of the United States and Federal law enforcement in the United States, its principal federal law enforcement ag ...
to investigate possible political corruption. The investigation led federal authorities to link the money transfers to the Emperors Club. Prosecutors charged the four people operating the
escort service An escort agency is a company that provides escorts for clients, usually for sexual services. The agency typically arranges a meeting between one of its escorts and the client at the customer's house or hotel room (outcall), or at the escort' ...
with violations of the
Mann Act The Mann Act, previously called the White-Slave Traffic Act of 1910, is a United States federal law, passed June 25, 1910 (ch. 395, ; ''codified as amended at'' ). It is named after Congressman James Robert Mann (Illinois politician), James Rob ...
several days prior to the revelations of Spitzer's involvement. In November 2008, the Department of Justice declined to prosecute Spitzer for violating the Mann Act.


Public disclosure and resignation

On March 7, 2008, ''
The New York Times ''The New York Times'' (''NYT'') is an American daily newspaper based in New York City. ''The New York Times'' covers domestic, national, and international news, and publishes opinion pieces, investigative reports, and reviews. As one of ...
'' reported that the federal government had arrested four people in connection with an international online prostitution ring run by Emperors Club VIP. On March 10, the ''Times'' reported that Spitzer had been "caught on a federal wiretap arranging to meet with a high-priced prostitute at a Washington hotel". Spitzer was identified as "Client 9", and the ''Times'' stated that he had met with a prostitute from Emperors Club VIP at a Washington, D.C. hotel. Later on March 10, Spitzer held a press conference. At that time, he said:
I have acted in a way that violates my obligation to my family and violates my or any sense of right and wrong. I apologize first and most importantly to my family. I apologize to the public to whom I promised better. I have disappointed and failed to live up to the standard I expected of myself. I must now dedicate some time to regain the trust of my family.
Following Spitzer's March 10 press conference,
New York State Assembly The New York State Assembly is the lower house of the New York State Legislature, with the New York State Senate being the upper house. There are 150 seats in the Assembly. Assembly members serve two-year terms without term limits. The Ass ...
Republican Minority Leader James Tedisco and Republican New York Congressman Peter King separately called for his resignation. Tedisco later announced that he would initiate
impeachment Impeachment is a process by which a legislative body or other legally constituted tribunal initiates charges against a public official for misconduct. It may be understood as a unique process involving both political and legal elements. In Eur ...
proceedings in the State Assembly if Spitzer did not resign. Spitzer's office and the
U.S. Attorney United States attorneys are officials of the U.S. Department of Justice who serve as the chief federal law enforcement officers in each of the 94 U.S. federal judicial districts. Each U.S. attorney serves as the United States' chief federal ...
for the
Southern District of New York The Southern District of New York is a federal judicial district that encompasses the counties of New York (Manhattan), Bronx, Westchester, Rockland, Putnam, Orange, Dutchess, and Sullivan. Federal offices or agencies operating in the distri ...
declined to comment, except to say that "There is no agreement between this office and Gov. Eliot Spitzer, relating to his resignation or any other matter." In the wake of the revelations, and amid threats of impeachment, Spitzer announced on March 12, 2008, that he would resign his post as governor at noon on March 17, 2008. Spitzer said at a news conference in Manhattan: Spitzer's lieutenant governor,
David Paterson David Alexander Paterson (born May 20, 1954) is an American politician and attorney who served as the 55th governor of New York, succeeding Eliot Spitzer, who resigned, and serving out nearly three years of Spitzer's term from March 2008 to ...
, succeeded him as Governor of New York and served the remaining three years of Spitzer's four-year term.


Reactions

Spitzer's prostitution scandal became international news. The real George Fox, who is a close friend and campaign donor of Spitzer, issued a statement denying any connection to the scandal beyond the unauthorized use of his name. He said that he was "disappointed and distressed" that Spitzer had used his name as an alias, and confirmed that Spitzer privately apologized to him. According to
Nell Minow Nell Minow is an American movie critic and corporate governance scholar and expert who writes and speaks frequently on film, media, corporate governance, and investing. Minow was named one of the 20 most influential people in corporate governance ...
, a corporate-governance expert,
Wall Street Wall Street is a street in the Financial District, Manhattan, Financial District of Lower Manhattan in New York City. It runs eight city blocks between Broadway (Manhattan), Broadway in the west and South Street (Manhattan), South Str ...
reaction to the scandal was largely positive, due to a general dislike of Spitzer amongst investment professionals. Governor Spitzer made his rise to victory in New York City politics promising "ethics and integrity to be the hallmarks of isadministration." He had prosecuted several prostitution rings in his career, and his connection with a prostitution ring was felt as a betrayal by some women's rights and anti-human trafficking groups that had previously worked with him. In an editorial reflecting on the scandal, philosopher
Martha Nussbaum Martha Nussbaum (; Craven; born May 6, 1947) is an American philosopher and the current Ernst Freund Distinguished Service Professor of Law and Ethics at the University of Chicago, where she is jointly appointed in the law school and the philos ...
wrote "Spitzer's offense was an offense against his family. It was not an offense against the public. If he broke any laws, these are laws that never should have existed and that have been repudiated by sensible nations." In 2011, ''
The Guardian ''The Guardian'' is a British daily newspaper. It was founded in Manchester in 1821 as ''The Manchester Guardian'' and changed its name in 1959, followed by a move to London. Along with its sister paper, ''The Guardian Weekly'', ''The Guardi ...
'' summarized Spitzer's history as follows:
Long before there was Barack Obama there was Spitzer. While Obama toiled unknown in Illinois, the Bronx-born Spitzer won himself a national reputation as the "Sheriff of Wall Street". He was New York's tough-talking attorney-general, who fought banking corruption, enforced environment law and won rights for low-paid workers. He used that fame to enter politics and in 2006 became governor of New York: a perfect springboard for the White House. Before America fell in love with its first black president, people wondered if it was willing to embrace its first Jewish one. Spitzer could have made history.
Instead he left office in disgrace three years ago amid a flood of tabloid headlines that recounted salacious details from his repeated use of a high-end escort service. Spitzer was dubbed the "Luv Guv" and forced into a political wilderness. Rarely in American politics was a fall from grace so spectacular, so complete and so clearly down to a self-inflicted human flaw.


"Kristen"

"Kristen", 22, was an aspiring pop recording artist living in Manhattan whose professional stage name is Ashley Dupré. She was just one of the escorts that Spitzer had liaisons with, but she gained significant media attention following the scandal. After the news broke, she responded that she didn't "want to be thought of as a monster", and that it had been a "difficult" and "complicated" time for her. As a result of the media attention following the scandal, Dupré was offered $1 million by '' Hustler'' to pose nude for the magazine, and received unofficial offers from ''Penthouse'', among others. She eventually agreed to pose for ''
Playboy ''Playboy'' (stylized in all caps) is an American men's Lifestyle journalism, lifestyle and entertainment magazine, available both online and in print. It was founded in Chicago in 1953 by Hugh Hefner and his associates, funded in part by a $ ...
'' in the May 2010 issue.


Political impact

Overseas, Gerald Cavendish Grosvenor, 6th Duke of Westminster was a high-profile casualty of the scandal when Emperors Club prostitutes alleged that he had been a client. The allegations were followed by Grosvenor stepping down as Assistant Chief of the Defence Staff (Reserves and Cadets) in the British Ministry of Defence.


2013 New York City Comptroller election

Both Spitzer and Kristin M. Davis, another madam caught in the prostitution scandal but unaffiliated with the Emperors Club VIP, ran for
New York City Comptroller The Office of Comptroller of New York City, a position established in 1801, is the chief financial officer and chief auditor of the city agencies and their performance and spending. The comptroller also reviews all city contracts, handles the s ...
in
2013 2013 was the first year since 1987 to contain four unique digits (a span of 26 years). 2013 was designated as: *International Year of Water Cooperation *International Year of Quinoa Events January * January 5 – 2013 Craig, Alask ...
. Davis won the Libertarian Party nomination, but later withdrew from the race following a drug arrest. There was some debate as to whether or not Spitzer's name recognition would help him in the election. Spitzer lost the Democratic primary to
Scott Stringer Scott M. Stringer (born April 29, 1960) is an American politician who served as the 44th New York City Comptroller. A Democrat, Stringer also previously served as a New York State Assemblyman, and as the 26th borough president of Manhattan. I ...
, 52.1–47.9%.


Depictions in media

* The scandal was the subject of
Alex Gibney Philip Alexander Gibney (; born October 23, 1953) is an American documentary film director and producer. In 2010, ''Esquire'' magazine said Gibney "is becoming the most important documentarian of our time." Gibney's works as director include ''T ...
's 2010 documentary '' Client 9: The Rise and Fall of Eliot Spitzer''. A rough cut of the film was first shown on April 24, 2010, at the
Tribeca Film Festival The Tribeca Festival is an annual film festival organized by Tribeca Enterprises. It takes place each spring in New York City, showcasing a diverse selection of film, episodic, talks, music, games, art, and immersive programming. The festival ...
and the final version was screened at the
2010 Toronto International Film Festival The 35th annual Toronto International Film Festival, (TIFF) was held in Toronto, Ontario, Canada between September 9 and September 19, 2010. The opening night gala presented '' Score: A Hockey Musical'', a Canadian comedy-drama musical film. '' L ...
. * "
Major Boobage "Major Boobage" is the third episode in season 12 of the American animated television series ''South Park''. The 170th episode of the series overall, it originally aired on Comedy Central in the United States on March 26, 2008. The episode was ...
", the March 26, 2008 episode of the animated sitcom ''
South Park ''South Park'' is an American animated sitcom created by Trey Parker and Matt Stone, and developed by Brian Graden for Comedy Central. The series revolves around four boysStan Marsh, Kyle Broflovski, Eric Cartman, and Kenny McCormickand the ...
'', parodies the Eliot Spitzer prostitution scandal. * The law drama ''
The Good Wife ''The Good Wife'' is an American legal political drama television series that aired on CBS from September 22, 2009, to May 8, 2016. It focuses on Alicia Florrick, the wife of the Cook County State's Attorney, who returns to her career in law ...
'', which premiered in September 2009, was inspired in part by the scandal.


See also

*
Escort agency An escort agency is a company that provides escorts for clients, usually for sexual services. The agency typically arranges a meeting between one of its escorts and the client at the customer's house or hotel room (outcall), or at the escort' ...


References


Further reading

*


External links


Spitzer's Resignation LetterEmperor's Contemporary ArtEmperors Club VIP Escorts Website Pictures
{{DEFAULTSORT:Spitzer, Eliot, prostitution scandal 2008 in American politics 2008 in New York (state) 2008 scandals Eliot Spitzer Political scandals in New York (state) Prostitution in New York (state) Sexual fidelity in the United States State and local political sex scandals in the United States