By JODI SOKOLOWSKI
Buffalo Law Journal

The U.S. Attorney in Manhattan announced Thursday that no criminal charges will be filed against former state Gov. Eliot Spitzer over his involvement in a prostitution ring.

The state's 54th chief executive resigned March 17 amid allegations that he was a client in the Emperors Club VIP. He could have been charged with the Mann Act, which prohibits transporting prostitutes across state lines, but federal prosecutors chose to investigate him on questionable financial transactions.

An investigation by the FBI and the IRS' criminal investigation division determined that Spitzer made payments to bank accounts, one named QAT Consulting, that had been used to launder more than $1 million worth of criminal proceeds derived from the Emperors Club VIP's prostitution business, according to U.S. Attorney Michael Garcia.

The Southern District of New York office said March 6 that it would be filing criminal charges related to those transactions, but last week announced that there was no evidence of misuse of public or campaign funds.

"We have determined that there is insufficient evidence to bring charges against Spitzer for any offense relating to the withdrawal of funds for, and his payments to, the Emperors Club VIP," Garcia said. "We have concluded that the public interest would not be further advanced by filing criminal charges in this matter."

A first-term Democrat, Spitzer took office in January 2007 after serving as New York's attorney general, and was known for his hard-lined approach to fraud and reform.