CLIENT 9 - Former Governor Eliot Spitzer
The former Governor of New York, Eliot Spitzer was referred to as "Client–9" in documents filed in US Federal Court, to prosecute the owners of the Emperors Club elite escort agency.
On February 13 2008, Spitzer arranged a booking with the agency to meet an escort called “Kristen at the Mayflower Hotel in Washington DC.
Before the original Emperors Club Website was taken down, Kristen was described as an "American, petite, very pretty brunette, 5 feet 5 inches and 105 pounds" (165 cm, 47 kg).”
After the bust, "Kristen" was identified as the 22 year old Ashley Dupre travelled from New York for the liaison with Spitzer. He agreed in advance that he "would be paying for everything — train tickets, cab fare from the hotel and back, mini-bar or room service, travel time and hotel". When they met Spitzer gave Dupre $4,300 in cash. It was alleged that this amount included $1,100 as a deposit with the agency toward future bookings.
Spitzer booked room 871 at the Mayflower under the name of George Fox. This was a pseudonym he used which was the name of a hedge fund trader who was a close friend. These details emerged in court from a federal wiretap.
It also emerged that Spitzer had at least eight liaisons with escorts from Emperors Club over a six-month period and that he paid in excess of $15,000 for these services. He had been under surveillance twice in 2008 by the FBI and based on published reports, agents estimated that Spitzer spent over $80,000 on escorts over several years — This behaviour started when he was the Attorney General of New York and then continued after he became Governor.
The investigation was not originally aimed at uncovering prostitution offences but was initiated after a bank reported suspicious transactions to the IRS. Newsday reported that Spitzer wanted to transfer more than $10,000 to the company that fronted for the Emperors Club escort agency. However, he made the transactions in smaller amounts due to reporting requirements involving any transfer over $10,000. He then attempted to have his name removed from the wire transfers but the bank declined as the funds had already been sent. The Criminal Investigation Division of the IRS then started enquiries based on the assumption that Spitzer could have been a victim of identity theft or extortion.
A separate major bank, HSBC, then filed a report that the transactions were being sent to QAT International and QAT Consulting Group, which were offshore companies operating as a front for the escort agency.
The IRS then contacted the FBI to investigate potential corruption. The transactions were then linked to the operators of the Emperors Club escort agency and the four people operating the agency were arrested and charged with violations of the Mann Act. One week later Spitzer’s involvement became public.
On March 12 Spitzer resigned as Governor after he was threatened with impeachment.
"I cannot allow for my private failings to disrupt the people's work," Spitzer said at a news conference in New York City. "Over the course of my public life, I have insisted — I believe correctly — that people take responsibility for their conduct. I can and will ask no less of myself. For this reason, I am resigning rom the office of governor."