Spitzer Aftermath; What to Expect

Eliot Spitzer has resigned, with the same aplomb as he demonstrated by going after legitimate businesspeople who did nothing more than their normal job.  It showed a man who didn’t grasp that his “private” conduct was a violation of a public trust.  It showed a man who was still tough and brazen.  He claimed he was “taking responsibility” for his conduct.  That has yet to be seen.

Spitzer’s resignation was not a symbol of “taking responsibility.”  It was a political necessity rammed down his throat.  Holding public office is not a right, but a privilege.  He lost that privilege when he, especially he, placed himself outside the law.  But taking responsibility for the commission of crime means something entirely different.  After any criminal defendant and they’ll tell you all about taking responsibility.

Even though Dan Hull (who it terrific) thought the Spitzer resignation was “pitch perfect” and he’ll be back (presumably after he’s zipped his fly up), what I saw was a horrific display of fear, self-absorption and disingenuity.  Politically, Eliot Spitzer no longer exists, except as a bad New York Joke.

But our departed Governor is not yet out of the woods


Immediately after New York Governor Eliot Spitzer announced his resignation yesterday, U.S. Attorney for the Southern District of New York Michael Garcia issued an unusual statement: “There is no agreement between this office and Gov. Eliot Spitzer, relating to his resignation or any other matter.”

This is obviously intended to dispel any speculation that he resigned as part of a deal.  This is revealing for another reason as well:  The general deterrence aspect of any high-profile criminal defendant is never far from the prosecution’s thoughts.  What they do, and how they do it, impacts both the defense and the prosecution.  The legitimacy of prosecutorial choices is at stake here.  Michael Garcia’s announcement made it clear the he is aware of his responsibility, and that his decisions will be made accordingly.

So what happens next?  The media has been awash with silly and vague speculation.  There have been a few astute comments, but they are drowned out by the chorus of “former prosecutors” with nothing to say.   Much of the speculation is based on the fairness approach (“ordinary johns aren’t prosecuted so why should Spitzer?”) and the paid-his-dues approach (“He resigned, isn’t that enough?”).  Neither approach, in my view, is appropriately applied in this situation.

The latest spin effort is that this is a Republican effort to smear Democratic politicians.  Maybe so, maybe not.  It doesn’t matter, since Spitzer’s commission of a crime, if the case, rises above (falls below?) political considerations.  If it was a matter of partisan attack, then he would have been safe had he not engaged in criminal conduct.  If he did, then it doesn’t matter what motivated his investigators to find out.

With the  complaint and the search warrant affidavit in hand, we are able to put aside some of the rank speculation and focus on what Spitzer is really facing.  This is not a case about arresting the “john”, but about the commission of two federal offenses, money laundering (structuring) and the Mann Act, together with conspiracy to commit both.

The talk about what would happen to ordinary people is off base.  Beyond the fact that “ordinary people” aren’t governors, or self-righteous avengers of morality, the hard fact is that the government regularly prosecutes “little people” for money laundering violations.  It happens all the time, and there’s no reason to think that Spitzer would or should get a pass.

The Mann Act violations are far more rare.  It’s a somewhat archaic law, from the days when the idea of crossing state lines to take advantage of more lenient laws in other locales was more offensive.  But as the warrant affidavit shows, it was in play with regard to the primary defendants, clearly implicated in the way that prostitutes were shipped around to meet the needs of the clients.  It’s not at all surprising that the Mann Act was resurrected, given the Department of Justice policy to charge the highest provable crime.  But since it has been raised with regard to the operators of the escort service, it should be anticipated that clients who sought to have their dates cross state lines will bear the consequences as well.

And of course, there will be the obligatory conspiracy counts relating to Spitzer’s agreement with the primary defendants to engage in the illegal conduct.

The United States Attorneys office will prosecute Eliot Spitzer because it has no choice to do otherwise.  Neither pauper nor Governor can ignore the law, as it should be if the law is to have any integrity.  Given the scrutiny that this case has  and will receive, there can be no other outcome.


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6 thoughts on “Spitzer Aftermath; What to Expect

  1. What About Clients?

    Simple Justice on Spitzer Exit

    At WAC?, we think that politics–the art of controlling your environment–is important every day, and especially important if you’re a business person or a lawyer. Do see Scott Greenfield’s article “Spitzer Aftermath; What to Expect” at Simple Justice. We like…

  2. PointOfLaw Forum

    Money-laundering charges: “It happens all the time”

    The Mann Act, perhaps, is fairly described as “little-enforced”, but, says criminal defense lawyer Scott Greenfield, “the hard fact is that the government regularly prosecutes ‘little people’ for money laundering violations. It happens all the time.” More at Overlawyered here…

  3. Frank Tillery

    My first inclination is to say no, do not prosecute because this is really a victimless crime. However, due to Mr. Spitzer’s “Holier than Thou”, sanctimonious approach to others while he was District Attorney, I feel he should be prosecuted (just ask the guys on Wall Street).

    Also, if nothing else, he should be prosecuted for being stupid. You mean to tell me that the most powerful man in one of the largest state economies could not “stash” a few bucks away here and there to pay for his folly? He gets a paycheck and I am sure no one in his family monitors his spending since he rarely has to spend any money.

    No. Not Laser Brain! He creates a dummy company and plows money into it as if no one would notice. You would think he of all people would be aware of the IRS staffers who just sit around all day drinking cappuccinos and studying these types of transactions. And he was an Attorney General?

    Arrest the bum!

  4. What About Clients?

    Simple Justice on Spitzer Exit

    At WAC?, we think that politics–the art of controlling your environment–is important every day, and especially important if you’re a business person or a lawyer. Do see Scott Greenfield’s article “Spitzer Aftermath; What to Expect” at Simple Justice. We like…

  5. Ian Welsh

    Amazing really. If Wall Street analysts jobs were to talk up stocks publicly that they privately knew were dogs, then yeah, I guess the guys Spitzer went after were “doing their job”. Their job being that of “confidence man”.

    Spitzer at least admitted what he did was wrong. And he resigned. And he isn’t getting millions of dollars of bonusses or a golden parachute for screwing up. And his failure didn’t involve his duties as governor (though I agree with the rank hypocrisy given had prosecuted prostition rings himself.)

    Would that even a few in Wall Street, either in the dotcom era, or in the current era had even half the shame Spitzer showed. But I guess taking millions of dollars and bankrupting your company out of greed is what counts as “doing your job” these days on Wall Street. And if thousands lose their jobs as a result, well, you “were only doing your job”.

    There are many ways to betray trust, and Spitzers was bad, but hardly the worst.

  6. SHG

    You may be confusing Spitzer with the feds, who went after the boiler room outfits.  Spitzer went after guys like Hank Greenberg of AIG for the way commissions were split, and Grasso because he negotiated too good a deal for his parachute.  You can appreciate what Spitzer did, but that doesn’t mean you can credit him for things he had nothing to do with by fudging the details.  

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