Routine IRS Work Led To Spitzer Prostitution Allegations

(New York, NY) -- A routine IRS review of bank transactions in a non-discrete Long Island office building led to yesterday's lurid allegations of New York Governor Eliot Spitzer's involvement in the Emperor's Club prostitution ring.

The "New York Times" is reporting Internal Revenue Service agents looking at suspicious transactions reported by banks spotted several questionable ones involving the governor. Officials who spoke to the "Times" said they first thought the transactions suggested possible financial crimes like bribery or campaign finance violations.

They were not expecting to find evidence about prostitution.

The "Times" says the agents found evidence that the money was being moved to pay for sex and that the transactions were being manipulated to conceal Spitzer's involvement.  After realizing the delicacy of the case involving a high-ranking public official, agents secured the permission of the U.S. Attorney General to move forward.

Agents were then able to get the okay to wiretap Spitzer using information from a confidential informant who worked previously as a prostitute for the ring.

(Copyright 2008 by Newsroom Solutions)