Routine IRS Checks Exposed Spitzer

Bank transactions made investigators suspicious
By Jason Farago,  Newser Staff
Posted Mar 11, 2008 5:09 AM CDT
Traders watch a statement by New York Gov. Eliot Spitzer on a screen in a booth on the floor of the New York Stock Exchange, Monday March 10, 2008. A law enforcement official has told The Associated Press...   (Associated Press)
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(Newser) – The inquiry that uncovered New York Gov. Eliot Spitzer's alleged assignations with high-priced hookers began in a decidedly unglamorous IRS office in Long Island, reports the New York Times. There, investigators were poring over suspicious bank transactions when they noticed the governor was apparently trying to conceal the transfer of thousands of dollars via what appeared to be shell companies, officials said.

Investigators at first suspected bribery or corruption and called in the FBI, but they soon discovered Spitzer's involvement with prostitutes. With help from an ex-prostitute, the team obtained a judge's permission for a series of wiretaps on the escort service's employees. Those taps uncovered the extent of the prostitution ring, with the Emperor's Club at its center and the disgraced New York governor one of its clients.