Federal investigators will pore over resigning New York Gov. Eliot Spitzer’s financial records – dating to his earliest days as New York’s attorney general – before they decide whether, or how, to prosecute him, reports the New York Post. The feds’ desire to thoroughly examine Spitzer’s bank, credit-card and other records dating as far back as 1999 is a key reason prosecutors are not rushing to cut a plea deal with him. That inquiry could take months, a source said.
Spitzer was believed to be seeking a deal to avoid prosecution -or at least prison time – if he agreed to quit as governor. H. James Pickerstein, a former top Connecticut federal prosecutor, said that even if Spitzer had sought such a deal, “it’s against very, very firm government policy, especially when dealing with a high elected official,” for prosecutors to make such a deal. “That’s because the government doesn’t want to appear that it is in any way interfering with the electoral process,” he said. Spitzer faces possible criminal charges because of his alleged structuring of payments to sham corporations set up by international brothel Emperors Club VIP. Spitzer reportedly made a series of wire transfers – each in themselves totaling less than $10,000 – from a bank account 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.