3/14/2008

What Spitzer got out of his demands on firms

This is the first that I heard that Spitzer would extort firms into giving Spitzer's friends important jobs.

Companies almost always agreed to Mr. Spitzer's demands that they pay stiff fines and change the way they operated -- all without any trials or judicial determinations that they had done anything wrong. "It became a kind of blackmail," Mr. Siegel says, "in which he said to companies, if you don't put my friends in high positions in your company I'll drag you through the mud." . . .

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3/12/2008

Media Bias on Coverage of Spitzer

The Media Research Center has found some more interesting information on media bias:

"For Second Night, ABC and NBC Refuse to Utter Spitzer's Party ID. Today Spends 4 Hours Ignoring the 'D' Next to Spitzer's Name. CBS's Early Show Makes No Mention of Spitzer Being a Democrat ... CNN's Costello Channels Larry Flynt's List of GOP Hypocrisy ... In 1,760 words, Tuesday's front page USA Today article on New York Governor Eliot Spitzer never identified him as a Democrat, not even in photo captions, though the online version was updated with his party affiliation, yet described Senators Larry Craig and David Vitter as Republicans in the first mentions of their names in the story."

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Spitzer broke law that he signed, I can't figure out what he was thinking

One would think that if Spitzer was going to a prostitute, he would be somewhat more circumspect in attacking others who were caught going to prostitutes.

From the NY Times on Spitzer:

And with his typical zeal, he embraced their push for new legislation, including a novel idea at its heart: Go after the men who seek out prostitutes.

It was a question of supply and demand, they all agreed. And one effective way to suppress the demand was to raise the penalties for patronizing a prostitute. In his first months as governor last year, Mr. Spitzer signed the bill into law.

Now the human rights groups, which credit him with what they call the toughest and most comprehensive anti-sex-trade law in the nation, are in shock. Mr. Spitzer stands accused of being one of the very men his law was designed to catch and punish.

“It leaves those of us who worked with his office absolutely feeling betrayed,” said Dorchen Leidholdt, director of Sanctuary for Families Legal Services, one of the leaders of the coalition that drafted the legislation.

The law, which went into effect Nov. 1, mainly deals with redefining and prosecuting forms of human trafficking, which Governor Spitzer called “modern-day slavery.” It offers help to the women who are victims of the practice, rather than treating them as participants in crime. . . .


From an editorial in the NY Times (emphasis added):

While few clients of prostitutes face criminal charges, law-enforcement affidavits raise at least the possibility of criminal charges based on transporting a woman across state lines for prostitution. Mr. Spitzer’s own record of prosecuting such cases gives him scant breathing room. As state attorney general, he prosecuted prostitution rings with enthusiasm — pointing out that they are often involved in human trafficking, drug trafficking and money laundering. In 2004 on Staten Island, Mr. Spitzer was vehement in his outrage over 16 people arrested in a high-end prostitution ring. . . .


Here is something from the WSJ about his tactics as a prosecutor:

He routinely used the extraordinary threat of indicting entire firms, a financial death sentence, to force the dismissal of executives, such as AIG's Maurice "Hank" Greenberg. He routinely leaked to the press emails obtained with subpoena power to build public animosity against companies and executives. In the case of Mr. Greenberg, he went on national television to accuse the AIG founder of "illegal" behavior. Within the confines of the law itself, though, he never indicted Mr. Greenberg. Nor did he apologize.

In perhaps the incident most suggestive of Mr. Spitzer's lack of self-restraint, the then-Attorney General personally threatened John Whitehead after the former Goldman Sachs chief published an article on this page defending Mr. Greenberg. "I will be coming after you," Mr. Spitzer said, according to Mr. Whitehead's account. "You will pay the price. This is only the beginning, and you will pay dearly for what you have done."

Jack Welch, the former head of GE, said he was told to tell Ken Langone -- embroiled in Mr. Spitzer's investigation of former NYSE chairman Dick Grasso -- that the AG would "put a spike through Langone's heart." New York Congresswoman Sue Kelly, who clashed with Mr. Spitzer in 2003, had her office put out a statement that "the attorney general acted like a thug."

These are not merely acts of routine political rough-and-tumble. They were threats -- some rhetorical, some acted upon -- by one man with virtually unchecked legal powers.

Eliot Spitzer's self-destructive inability to recognize any limit on his compulsions was never more evident than his staff's enlistment of the New York State Police in a campaign to discredit the state's Senate Majority Leader, Joseph Bruno. On any level, it was nuts. Somehow, Team Spitzer thought they could get by with it. In the wake of that abusive fiasco, his public approval rating plunged. . . .


Here is something more from the WSJ:

Then again, Mr. Spitzer himself is intimately familiar with the prosecutorial tactic of dusting off old laws and repurposing them. When he became New York's Attorney General in 1999, he seized on the 1921 Martin Act and wielded it as a club against some of the biggest firms on Wall Street. The Martin Act was originally passed to facilitate the prosecution of "bucket shops" that took advantage of small-time investors, but its use became relatively rare decades ago. It should have been repealed.

However, the Martin Act was convenient for Mr. Spitzer's purposes because of the low bar it sets for bringing cases and the ability it afforded him to bring preliminary injunctions without even having to file a complaint first. Violations bring stiff civil and criminal penalties and, most important, do not require prosecutors to prove criminal intent. The law had been used primarily to pursue pyramid schemers, pump-and-dump operations and other unambiguous frauds, but Mr. Spitzer saw in it a way to exert enormous leverage over the Wall Street firms whose research practices he wanted changed. By using the Martin Act, Mr. Spitzer could more easily coerce settlements from his targets, who feared the law's low bar in court. . . .

As Mr. Spitzer knows all too well, the government has many weapons for pursuing its targets. The Governor now has to hope that federal prosecutors show more restraint than he ever did as Attorney General. . . .


What Spitzer was caught doing and how he was caught doing it is just like that how he caught others.

Spitzer of all people should have known that, said Miami-based lawyer Gregory Baldwin, credited with coining the term "smurfing" in the as a federal prosecutor.

"I think he's done enough cases where he's charged money laundering that he would know exactly what kind of information you get from the banks. It's such a perfect example of what goes around, comes around," he said.

By the time the scandal broke this week, Spitzer's financial transactions had been monitored, his phone calls had been caught on tape, and his actions had been scrutinized by federal prosecutors. It could have been straight out of the Spitzer prosecution playbook.


Minor note: Bill Clinton signed a sexual harassment law that eventually forced him to testify in the Paula Jones case. Of course, the response then was that it was all about sex (hint, surprise, that is actually what sexual harassment is about). The hypocrisy in Clinton's case didn't seem to matter. Possibly it won't matter in Spitzer's case. My own guess is that Spitzer is going to try to hang on and tough it out.

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3/11/2008

Media Bias in Coverage of Governor Eliot Spitzer Problems

Quote from today's WSJ's Political Diary:

"In lead stories Monday night about New York Governor Eliot Spitzer being linked to a prostitution ring, neither ABC's World News nor the NBC Nightly News verbally identified Spitzer's political party. Must mean he's a liberal Democrat -- and he is. CBS anchor Katie Couric, however, managed to squeeze in a mention of his party. On ABC, the only hints as to Spitzer's party were a few seconds of video of Spitzer beside Hillary Clinton as they walked down some steps and a (D) on screen by Spitzer's name over part of one soundbite. NBC didn't even do that. While ABC and NBC failed to cite Spitzer's political affiliation in the four minutes or so each network dedicated to the revelations, both managed to find time to applaud his reputation and effectiveness as the Empire State's Attorney General before becoming Governor" -- Brent Baker of the conservative Media Research Institute.

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3/10/2008

Eliot Spitzer caught in Prostitution Ring

By now many have heard about Governor Elliot Spitzer's involvement with a prostitution ring. There are surely worse things for a person to do, but what is interesting is the "revulsion and anger" that he has shown to others involved in this type of case before. The problem is how the press having gone after Republicans because of their hypocrisy over these family issues and forcing them to resign will now go after Spitzer:

Mr. Spitzer gained national attention when he served as attorney general with his relentless pursuit of Wall Street wrongdoing. As attorney general, he also had prosecuted at least two prostitution rings as head of the state’s organized crime task force.

In one such case in 2004, Mr. Spitzer spoke with revulsion and anger after announcing the arrest of 16 people for operating a high-end prostitution ring out of Staten Island. . . .


$5,500 per hour prostitution service sure makes these Democrats appear to have a lot in common with everyday middle class people.

Governor Spitzer's public statement can be seen here, though he wouldn't take any questions and had it take place before most of the press could get there.

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7/25/2007

The WSJ Nails New York Governor Eliot Spitzer

When Eliot Spitzer as the New York Attorney General he was known as having weak legal cases when he went after companies, but that he uses the reputational damage that he can try inflicting on them to blackmail them into settling. The damage often seemed to occur from well timed and placed information leaks. Apparently, Spitzer was caught using the same tactic against one of his political opponents. Given this was Spitzer's standard tactic for years, the vast majority of the press coverage that Spitzer is getting is very disappointing.

The media are doing their best Claude Rains act over the revelation that the office of New York Governor Eliot Spitzer orchestrated a smear campaign against State Senate Majority Leader Joe Bruno. But far from being a unique, out of character event, the episode is a classic example of the Spitzer political method: nasty and exaggerated accusations fed by selective, politically motivated news leaks. The difference is that this time his targets could fight back.

On Monday, the office of Democratic Attorney General Andrew Cuomo released a 54-page report on Mr. Bruno's use of state helicopters, allegedly for personal political purposes. The investigation had been prompted by the Governor's office after Mr. Spitzer's communications aide and hatchet man, Darren Dopp, saw to it that allegations of impropriety against Mr. Bruno had found their way into the hands of gullible, pliant reporters. . . . .

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