The data system that nailed Spitzer and prostitution ring

By at 4:52 pm Tuesday, Mar 11

Over at ZDNet, Larry Dignan has an interesting piece up today about an information-sharing network that exposed New York governor (presumably soon-to-be ex-governor) Eliot Spitzer's alleged ties to a prostitution ring:
On the surface, Spitzer’s downfall is a New York tabloid’s dream. Headlines like “Ho No!” scream on the New York Post. Wall Street is downright gleeful about Spitzer’s downfall (although Henry Blodget has shown an amazing amount of restraint).

[W]hat 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).

Link (thanks, Paul Boutin!)

Xeni Jardin

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