Don't drink the spin. Eliot Spitzer is not in a sex scandal. This is not our former president Bill Clinton again, though we will paraphrase Bill Clinton. Our point is that the perverted adulterous acts of Spitzer are not the issue: It's the Organized Crime, Stupid! The significance of Eliot Spitzer's association with the Prostitution Ring has to do with the fact that such a ring is, by definition, Organized Crime.
Eliot Spitzer knew he was dealing with organized crime, and the Organized Crime families knew they had dirt on Eliot Spitzer.
Spitzer was an expert in organized crime law. In fact, Spitzer himself conducted prosecutions against certain other Prostitution Rings - competitors of his associates. Spitzer held official law enforcment positions both as a former Federal lawyer U.S. Attorney, and the chief law enforcement of the State Of New York as the Attorney General, during which he paid his associated organized crime associates via wire transfers through multiple shell companies.
Spitzer was obligated to report crime he witnessed, but clearly he did not report the crime family that he dealt with. Thus, Spitzer protected the organized crime families with which he had is decade, or longer, association. Not very surprising, because if Spitzer had prosecuted his associates in the Prostitution Ring, they would have countered by exposing Spitzer and ending his career. Eliot Spitzer was "owned" by the crime family associated with the Prostitution Ring. The crime family associated with the Prostitution Ring held "career ending" dirt on Eliot Spitzer: They had the power to end his career, possibly end his marriage, and tarnish the Spitzer name for at least the next 50 years.
Organized Crime Families are Diversified just like other Corporations
We all know how the Sopranos had many different business ventures, and whenever they could they would support and enhance each others operations. Just like subsidiaries of other corporations. What other businesses did the crime families which held the juicy dirt on Spitzer engage in? Perhaps they were involved in some of the well known havens for organized crime such as the garbage business, the asbestos racket, gambling rackets, bankruptcy rings, and corrupt hedge funds. The simple truth is that Spitzer was unable to prosecute any crime that traced its way back to the crime family which controlled the prostitution ring.
What crimes did Spitzer choose to ignore? Now it all makes Sense.
Wouldn't you think that an Attorney General as prosecution and litigation happy as King Eliot would have jumped at the chance of prosecuting a ring of lawyers and hedge funds after he received an actual recording of a death threat made against a whistle-blower? Now it all makes sence that he couldn't prosecute them if there was a tie between the people associated with the prostitution ring.
Long after the wire tap was in place, only a month before Spitzer's indictment, he finally wrote an editorial about the misconduct and fraud in the mortgage industry. But why didn't King Eliot do anything about this unprecedented and far reaching consortium of fraud when he was the Attorney General? The "sub prime fraud" in reality includes corrupt appraisers, sub-prime origination fraud, CDO valuation and structuring fraud, and mark to market fraud. Instead of halting what may cause the worst financial crisis since the Great Depression, Eliot Spitzer chose to draw the nation's attention away from this brewing element of Organized Crime by chasing after a few highly paid Wall Street executives. Now it all makes sence that Spitzer couldn't stop the sub prime fraud business if they were connected with the people associated with the prostitution ring.
Why didn't Eliot Spitzer do anything about the WorldCom fraud, collusion, and conflict of interest? Now it all makes sence that Spitzer couldn't investigate any of the accounting firms, law firms, and hedge funds if they had a connection with the people associated with the prostitution ring.
Only a Federal Special Prosecutor would have the authority to get to the bottom of things. There is enough proven fact on Spitzer already exposed to the public to put him behind bars for 10 years or more. What we need is a prosecutor who is not corrupt, and wants to build himself into the next Rudy Giuliani. What odds do you suppose the bookies in Vegas are placing on rich boy Spitzer staying silent for 10 years in order to protect some law firms, accounting firms, and hedge funds?