Eliot Spitzer’s Last Pay-to-Play Scandal?

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The revelation that New York Governor Eliot Spitzer, the Social Justice League's caped crusader, has been involved in a prostitution ring will no doubt come as a shock to all those progressives who have faithfully –often fanatically– boosted him over the years. For years the boy wonder has prattled on about market abuses, both real and imagined, especially during his media-saturated tenure as New York’s attorney general from 1999 to 2006. For years journalists and pundits have hailed Spitzer as the protector of all things good. In a 2005 Time “Heroes & Icons” profile subtitled, “The Tireless Crusader,” John Bogle said Spitzer served with “energy, savvy and distinction” as state attorney general. In 2002 Time hailed him as “Crusader of the Year,” an event Spitzer notes in the bio of his gubernatorial website. The New York Times called him the “Sheriff of Wall Street” in 2006. The Atlantic (admiringly) called him “the scourge of Wall Street” in 2003.  

In 2004 PBS's David Brancaccio called him “a crusader who's taken on investment banks, the mutual fund industry, insurance, pharmaceutical and energy companies on behalf of the little guy.” In a 2004 profile entitled "The Govercutor," New York magazine's Chris Smith called Spitzer the “hottest stock in New York’s Democratic Party.”

The New York Times’s Paul Krugman hailed Spitzer in 2002 as one of the “good guys.” In the same piece, Krugman quotes Alan Dershowitz, a Harvard Law School professor who hired then-law student Spitzer in the 1980s to help with research in the Claus von Bulow defense. "He's the real deal," said Dershowitz, who in his day was himself a wunderkind. "He has a creative and innovative mind, and he always wants to do what's right." Not surprisingly, as Tim Graham noted earlier today, Dershowitz went to bat for Spitzer today, vigorously downplaying the prostitution allegations and lashing out at reporters.

Perhaps all the effusive praise heaped on Spitzer has blinded commentators to his ethical shortcomings in the world of philanthropy.

Never one to overlook the well being of his fellow lawyers, Spitzer insisted (PDF) that Philip Anschutz, former chairman of Qwest, pay $200,000 to six law schools favored by Spitzer, as part of a settlement. Now that’s chutzpah. Spitzer had sued Anschutz alleging that Salomon Smith Barney provided him insider information in return for his business. Anschutz admitted no wrongdoing, but paid out a total of $4.4 million to various charities (without taking tax deductions). Magnanimously, Spitzer allowed Anschutz to choose most of the charities receiving the “donations.”

There are other inglorious philanthropy-related moments in Spitzer’s career. As attorney general Spitzer policed the Empire State’s 60,000 charities and nonprofits, including his family’s philanthropy, the Bernard and Anne Spitzer Charitable Trust. That trust invested almost all of its nearly $26 million in assets in hedge funds and equity funds whose executives made generous donations in the hundreds of thousands of dollars to Spitzer’s gubernatorial campaign. (A related New York Times story may be found here.) Marcy Murninghan, a consultant to foundations and a former ethics professor at Harvard Divinity School, said the actions raised red flags. “It raises ethical questions — and suggests a level of self-dealing — when financial investments are placed with investors who happen to be his biggest contributors.”

Spitzer helped (PDF) Princeton in its posterior-covering launch of a scholarship program to distract from the school’s flagrant violation of donor intent. He was on hand for the press conference when the $10 million Woodrow Wilson School fellowship for the “Charles and Marie Robertson Scholars in the Nation’s Service” was unveiled. The Robertson heirs have been involved in a lawsuit for years, Robertson v. Princeton, in which they’ve been trying to force the school to honor the donor intent of their late parents.Spitzer did, however, defend (PDF) donor intent at least once, but it was regarding a cause many more people had heard about. When American Red Cross president Dr. Bernadine Healy wanted to spend funds donated to the group in the wake of the September 11 terrorist attacks on programs unrelated to 9-11 victims, Spitzer said the proposal was ”anathema” for the Red Cross. He vowed litigation to deprive the charity of its state and federal tax deduction if it failed to hand over the “reserve” to victims: “We will not be satisfied until every penny of that $564 million goes to the victims of the September 11 attack. That was clearly the intent of those who gave so generously.” In the end the Red Cross relented and Healy resigned.

(Acknowledgement: Capital Research Center staffer James Dellinger came up with the phrase “Social Justice League” a few months ago. Another version of this post appears on the CRC website. -Matthew Vadum)

(Note: Pay-to-play, which I used in the headline, is a term used in politics and in the world of public finance. Sorry: I was a financial reporter for so long I just assumed everybody would get it. -MV)

—Matthew Vadum is Editor of Organization Trends and Foundation Watch at the Capital Research Center.


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that's a good one

"Pay to play." I'll have to remember that one. lol

BTW, anyone else think

BTW, anyone else think "involved in a prostitution ring" sounds like Spitzer was running the ring or keeping its books or something?  

"Involved"?

I agree, Bal. The initial reports made Spitzer sound like a pimp.

When you put the clowns in charge, don't be surprised when a circus breaks out.

Just warming up

This is just a warning shot to HRC. The Vast Right Wing Conspiracy is back big time!

Just a Question here, And hope you folks can keep it clean?

55 hundred dollars here spent..five thousand five hundred...dollars...as has been reported elsewhere.. allegedly spent on hookers. Or a hooker...#9. etc.  What do you buy for that kind of  money?  Drugs? The reputation of doing it? What is it?   You could fly to nevada, have your fill of whatever, still be legal with the law, and fly back home in time to pick up the pizza, and kids from day care, and not worry that your name would be all over america in the same day, for less mulaah.  Unless, it was NY taxpayers money your'e spending. then.. well...ummm....?

what's the mayors salary? 

what's the mayors salary?  and was it a one time only thing?  percentages, i'm thinking what percentage of yearly salary was used at that, uh, deli?

"Man created god(s) Anything believed was created by man"----Syrius  

JN,

Perhaps Spitzer didn't like flying?

Theme for Election '08: I want my mommy!

Dont know about the flying issue..But..

You could drive a gas guzzling hummer, or some such, for less money, all the way from NYC to nevada, and back.. for less than  2500. 00 , Which gives you plenty of cash left over for hookers! Considering you dont want any more than say 2500.00 for hookers, that is.

Keeping in my 5500.00 budget..allways..ps

500.00 left over. not counted in hookers  gas etc, but as long as were'e at it,  Great Food!

JN,

LOL, yeah, but by driving, he would have been gone from home way too long.

Much better to get the "quickie" close to home. :-)

Theme for Election '08: I want my mommy!

R.D. yep and lol over this!

looking for a new quote here, must be short, truthfull, and looking for a new place to shine in the light on occasion. send resume. thanks.

Even Carrot Top knew to get

Even Carrot Top knew to get his hookers in Nevada.  Maybe the prop comedian is smarter than a Princeton and Harvard Law educated, former New York State Attorney General - cum - Governor.

RRAM Tough! 

Maybe

He got a hummer as well...

Well, he is running a $4

Well, he is running a $4 Billion deficit.  I wonder how many hookers Schwarzenegger has been visiting lately.

The GOVFORNICATOR

It seems that the GOVFORNICATOR even managed to get the Governor's Discount for his whoring.

Feds have him on tape bargaining down the nighty charge from $5000 to $4300!

Wow.

Vote 4 change. Vote 4 anything. See Jack & Mr Shy's first campaign ad for the ONLY viable 3rd party candidate.

Plus he put the poor girl on the local train

Not the "Acella Express," which is faster & nicer. Such a nice, generous Democrat billionaire's kid.

This brings to mind a story I've told here before about a late '80s news article I distinctly recall reading but can not find on the web to save my life (much like McGovern's late '90s WSJ column!). A journalist talked to hookers who'd worked both the Democrat and Republican conventions and asked them about the difference. Democrats just wanted sex, but were invariably cheap and constantly trying to bargain them down. Republicans were generous, but wanted the more odd, exotic services best left to the imagination... So both realities were the exact opposite of how they paint themselves publicly. The "man of the people" is really cheap. The "moralist" really likes 2 girls at once.
JMR

A corruption-story the TV media will-not cover.

Chris Matthews

I saw him on Morning Joe and the first thing he said was something like.. enough of this Elliot Spitzer stuff. This from a man who spent almost entire episodes of his shows on Vitter, Foley, etc. Unbelievable!! I also heard someone on the Today Show (I didn't catch the name) say "everyone has their personal hell. I hope his is hotter than anyone else's".

The fix is in. I would be

The fix is in. I would be very surprised if he resigns over this. Impeachment probably wouldn't work as I am sure that the state government is overwhelmingly Democratic. I am really pi$$ed. AOL news has the story. The story is read through 12 panels which you click in progression. There is absolutely no mention of his party affiliation. Three other scandals involving Republicans all have R next to their name. They get to McGreevey poof no D next to his name either. This is absolutely shameless. According to the biased news story only Republicans want him to resign.