Who says IT ain't sexy? Not Eliot Spitzer

Spitzer: Now I know why I always hated IT.

(Credit: New York State)

I was sure that Henry Blodget's comment on the Eliot Spitzer prostitution scandal would come with a heavy dollop of schadenfreude.

After all, Spitzer as New York Attorney General forced Blodget to eat humble pie en route to an ignominious exodus from the securities industry. But in his new role as tech industry commentator, we're seeing a kinder, gentler side from the one-time Wall Street stock pumper.

On this blog at Silicon Alley Insider, Blodget opted for a "just the facts, ma'am," approach and reposted The New York Times' coverage as well as an excerpt from Spitzer's apology.

Bummer.

No matter. The more interesting angle in this affair is the role IT played in Spitzer's downfall. As my ZDNet compadre Larry Dignan writes, Spitzer's name got flagged during the course of a regular computerized activity report financial institutions now must regularly file.

"...what really snared Spitzer was a money laundering investigation that was flagged by suspicious activity reports (SARs) that banks have to file with the Treasury to surface everything from money laundering to terrorist activity. This network has been around for a while, but its importance escalated following the Sept. 11, 2001 terrorist attacks. According to the FBI's charges the prostitution ring that counted Spitzer as a customer was investigated due to some shady bank accounts, checks and wire transfers with big totals ($39,000, $400,000 and others).

You can also find out more about the Treasury Department's Financial Crimes Enforcement Network, or FinCEN, as it's more commonly known, by clicking on this resource guide on our sister site BNET, which tracks suspicious activity reports and currency transaction reports.

[Harlan879]

Were the "shady bank accounts, checks and wire transfers" belonging to Spitzer? Or to the ring? Did the SARs flag Spitzer, or someone else? Dignan's article is not clear on this matter. Could you please clear that up for us?

[ldignan]

Hi there, the details are still emerging, but overall the SARS flagged the ring, which appears to led the feds to Spitzer. More details are likely to emerge. In either case these transactions were picked up.

[bishop1641]

It is highly doubtful that that Spitzer's name came up because of a mandatory financial filing. There seems to have been an informant or something else at work here. It was just reported that one of the ring leaders from the "Emperor's Club" was an actual IRS agent. As more details surface I am sure this cover story will slowly evaporate and people will discover there is more at work here.

As per Spitzer, he is a prime example of a hypocrite.

[mikele11111]

Who cares who Spitzer was in bed with or if he paid for it? Aren't there real issues out there that actually affect our lives rather than an opportunity for the Republicans to get a Democrat?