The Spitzer Sting

Beat the Devil

By Alexander Cockburn

This article appeared in the March 31, 2008 edition of The Nation.

March 13, 2008

Was there a medium-sized right-wing conspiracy to nail Eliot Spitzer, above and beyond Spitzer's own diligent efforts in the same cause? It certainly looks like it. It's clear that the feds start ed with Spitzer, whose wire transfers led them to the Emperors Club VIP, a prostitution business efficiently administered by a 23-year-old Blair Academy grad, Cecil "Katie" Suwal, on behalf of her 62-year-old boyfriend, Mark Brener, from a high-rise in Cliffside Park, New Jersey, with fine views of Manhattan.

The official line is that it was Spitzer's efforts to break down a $10,000 transfer to an account fronting for Emperors Club that alerted clerks at his Manhattan branch of Capital One's North Fork bank. A similar transaction at another bank where Spitzer had an account also supposedly twitched a red flag. Banks have to report transactions of $10,000 and up to the Treasury Department. People not wanting to have their bank snitch to the feds about their transactions routinely keep the sums below the red-light figure, so the feds have told the banks to adjust their mandatory snooping to report smaller sums, or sums that add up to $10,000.

Like innumerable other affronts to privacy, this reporting requirement began as a tool in the "war on drugs" and is now part of the furniture of our lives. All the same, it strains credulity to believe that North Fork's "suspicious activity report" on a well-known and presumably valued client immediately aroused the interest of the IRS employee scrutinizing the many SARs churning through his computer on Long Island. The official version has the IRS man noting Spitzer's name, then passing the information up the food chain to the Justice Department and the US Attorney's office in Manhattan.

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About Alexander Cockburn

Alexander Cockburn has been The Nation's "Beat the Devil" columnist since 1984. He is the author or co-author of several books, including the best-selling collection of essays Corruptions of Empire (1987), and a contributor to many publications, from The New York Review of Books, Harper's Magazine, The Atlantic Monthly and the Wall Street Journal to alternative publications such as In These Times and the Anderson Valley Advertiser. With Jeffrey St. Clair, he edits the newsletter and radical website CounterPunch, which have a substantial world audience. more...
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