New York Gov. Spitzer resigns amid sex scandal

By Daniel Trotta

NEW YORK (Reuters) - New York Gov. Eliot Spitzer resigned on Wednesday amid a scandal over a $1,000-an-hour prostitute, ending a career built on pugnacious investigations of Wall Street crimes and an image of moral rectitude.

His resignation completed a fast and spectacular downfall for the former New York state chief prosecutor who rose to prominence by probing financial crime with a publicity-conscious vigor that earned him the nickname Sheriff of Wall Street.

Lt. Gov. David Paterson will replace him next Monday, Spitzer announced in a brief statement that dwelt on his remorse for "private failings" but did not detail what they were. Spitzer, 48, is married with three children.

Spitzer, a Democrat, had faced intense pressure to resign and impeachment threats from Republicans since Monday, when The New York Times reported he was caught on a federal wiretap arranging to meet a prostitute in a Washington hotel room.

Court documents in a federal investigation said a repeat customer identified only as "Client 9" paid $4,300 to a pretty and petite prostitute known as "Kristen." The Times, citing unnamed law enforcement sources, said Spitzer was Client 9.

New York City's tabloids, citing unnamed sources, reported that Spitzer spent up to $80,000 on prostitutes and that investigators were examining whether he used any state money.

The man who once broke up prostitution rings as the state's attorney general faces possible criminal charges related to his use of a prostitution service.

Amid speculation Spitzer was seeking to reach some kind of a deal to avoid or reduce any criminal liability, a federal prosecutor said on Wednesday that no such pact had been reached.  Continued...