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I hate to argue with my colleague Scott Horton, but I’m not sold on the notion that Eliot Spitzer was targeted by the feds. Scott wrote earlier today:
Today’s Times tells us that the North Fork Bank launched the inquiry by submitting a Suspicious Activity Report (SAR) against their client, Governor Spitzer, on the basis that he had made a number of smaller payments in order to avoid a $10,000 threshold for reporting…. Indeed, the suspicion that the bank apparently articulated, that Spitzer was laundering bribes, is and was absurd. But that baseless ‘suspicion’ was enough to launch a massive fishing expedition into the governor’s finances and is now very aggressively invoked by prosecutors as cover for what increasingly looks like a political hit job.
But the Times also said that “for several months, the electronic report [from North Fork] languished unnoticed in a vast Treasury Department database in Detroit. In early fall, however, a separate report was filed by the HSBC bank about suspicious transactions connected to two shell companies, which drew the attention of investigators. That touched off an inquiry that led investigators to discover the July report on Mr. Spitzer, which showed he had made several wire transfers to those companies, according to three people briefed on the inquiry.
I asked Jack Blum, a Democrat and former congressional investigator into the Iran/contra affair, for his opinion about the Spitzer investigation. “This did not look political to me,” said Blum, now with the firm of Baker Hostetler. “It looked like a proper response to a SAR filed by a bank in what could have been an extortion case. The feds were doing their job. This should put the lie to the argument that financial monitoring is useless because there are so few prosecutions. In fact many cases start with SARs but few people realize it.”
I put the same question of political motivation to a former federal prosecutor and money-laundering expert. “More a combination of bad luck and worse judgment,” he replied. “North Fork was being very conservative in filing theirs and wasn’t technically necessary, though in today’s environment, not that unusual. HSBC’s was more typical and once the two married up at FINcen, the rest was predictable. Government wouldn’t normally do Mann Act, especially wiretap, but once it was referred, however much glee the FBI/IRS might have taken is irrelevant. They had to follow the string or risk criticism from the other direction: that they passed up because of who he was. If reported facts are accurate, it followed a logical, predictable, and sad path.”
Of course, it’s possible that more facts will emerge that could suggest that the Spitzer investigation was politically motivated, and it’s certainly true that the investigators were extremely chatty with reporters. But at this point, it seems Spitzer’s own actions were grounds for investigation.
More from Ken Silverstein:
Perspective — October 23, 2013, 8:00 am
How pro-oil Louisiana politicians have shaped American environmental policy
Postcard — October 16, 2013, 8:00 am
A trip to one of the properties at issue in Louisiana’s oil-pollution lawsuits
Fleming awoke in the dark and his room felt loose, sloshing so badly he gripped the bed. From his window there was nothing but a hallway, and if he craned his neck, a blown lightbulb swung into view. The room pitched up and down and for a moment he thought he might be sick. The word “hallway” must have a nautical name. Why didn’t they supply a glossary for this cruise? Probably they had, in the welcome packet he’d failed to read. A glossary. A history of the boat, which would be referred to as a ship. Sunny biographies of the captain and crew, who had always dreamed of this life. Lobotomized histories of the islands they’d visit. Who else had sailed this way. Famous suckwads from the past, slicing through this very water on wooden longships.
A welcome packet, the literary genre most likely to succeed in the new millennium. Why not read about a community you don’t belong to, that doesn’t actually exist, a captain and crew who are, in reality, if that isn’t too much of a downer on your vacation, as indifferent to one another as any set of co-employees at an office or bank? Read doctored personal statements from underpaid crew members — because ocean life pays better than money! — who hate their lives but have been forced to buy into the mythology of working on a boat, separated now from loved ones and friends, growing lonelier by the second, even while they wait on you and follow your every order.
Number of people stopped and frisked by the NYPD in 2011 for “furtive movements”:
The faces of Lego people were growing angrier.
Four people were arrested for using a remote-controlled hexacopter to fly two pounds of tobacco to prisoners inside the yard at Calhoun State Prison in Georgia.
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Our congratulations to Alice Munro, winner of the 2013 Nobel Prize for Literature