Washington Babylon — March 13, 2008, 2:17 pm

Spitzer Set Up?

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.

Share
Single Page

More from Ken Silverstein:

From the November 2013 issue

Dirty South

The foul legacy of Louisiana oil

Perspective October 23, 2013, 8:00 am

On Brining and Dining

How pro-oil Louisiana politicians have shaped American environmental policy

Postcard October 16, 2013, 8:00 am

The Most Cajun Place on Earth

A trip to one of the properties at issue in Louisiana’s oil-pollution lawsuits 

Get access to 164 years of
Harper’s for only $39.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

September 2014

Israel and Palestine

= Subscribers only.
Sign in here.
Subscribe here.

Washington Is Burning

= Subscribers only.
Sign in here.
Subscribe here.

On Free Will

= Subscribers only.
Sign in here.
Subscribe here.

They Were Awake

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

Post
 
Where Israel and Palestine can go from here, Washington D.C.’s enduring legacy of racial strife, Edward O. Wilson on free will, and more
Criticism
"Policymakers, recognizing the growing influence of civil disobedience and riots on the direction of the nation, had already begun turning to science for a response."
Illustration by Richard Mia
Article
Israel and Palestine·

= Subscribers only.
Sign in here.
Subscribe here.

“If Israel believes it needs to make a wall eight meters high between us and them, let them have it eighty meters high. Under one condition: It has to be on the international border.”
Photograph (detail) © Ali Jadallah / APA Images / ZUMA Wire
Article
On Free Will·

= Subscribers only.
Sign in here.
Subscribe here.

“Philosophers have labored for more than two thousand years to explain consciousness. Innocent of biology, however, they have for the most part gotten nowhere.”
Collage (detail) by Frederick Sommer
Post
Astra Taylor on The People’s Platform·

= Subscribers only.
Sign in here.
Subscribe here.

Taking back power and culture in the digital age
“There’s a pervasive and ill-advised faith that technology will promote competition if left to its own devices.”
Photograph © Deborah Degraffenried

Chances that an applicant to a U.S. police force in 1992 was found to be “overly aggressive” on psychological tests:

1 in 2

Engineers funded by the United States military were working on electrical brain implants that will enable the creation of remote-controlled sharks.

Malaysian police were seeking fifteen people who appeared in an online video of the Malaysia-International Nude Sports Games 2014 Extravaganza, and Spanish police fined six Swiss tourists conducting an orgy in the back of a moving van for not wearing their seatbelts.

Subscribe to the Weekly Review newsletter. Don’t worry, we won’t sell your email address!

HARPER’S FINEST

In Praise of Idleness

By

I hope that after reading the following pages the leaders of the Y. M. C. A. will start a campaign to induce good young men to do nothing. If so, I shall not have lived in vain.

Subscribe Today