Eliot Spitzer

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Eliot Spitzer
Eliot Spitzer
Incumbent
Assumed office 
January 1, 2007
Lieutenant(s) David Paterson
Preceded by George Pataki
Born June 10, 1959 (age 47)
Bronx, New York
Political party Democratic
Spouse Silda Wall Spitzer
Profession Attorney
Religion Judaism

Eliot Laurence Spitzer (born June 10, 1959) is an American lawyer, politician and the current Governor of New York. Spitzer was elected governor in the November 2006 election. He is the former New York State Attorney General, a member of the Democratic Party and is married to Silda Wall Spitzer, the founder and chair of Children for Children, a non-profit organization. The Spitzers have three daughters.

Contents

[edit] Early life

Spitzer was born and raised in the affluent Riverdale section of The Bronx in New York City, by Austrian Jewish parents. His family was not particularly religious and Spitzer did not have a bar mitzvah[1] He is a graduate of Horace Mann School. With a score of 1590 on the SAT exam,[2] Spitzer attended Princeton University, where he was elected chairman of the undergraduate student government, graduating in 1981. He scored a perfect score on the LSAT,[3] and went on to Harvard Law School, where he met and married Silda Wall. Spitzer was an editor of the Harvard Law Review.

Upon receiving his Juris Doctor (J.D.) degree, Spitzer clerked for Judge Robert W. Sweet in Manhattan, then joined the law firm of Paul, Weiss, Rifkind, Wharton & Garrison. He stayed there for less than two years before leaving to join the Manhattan district attorney's office.

[edit] Manhattan district attorney's office

Spitzer joined the staff of Manhattan District Attorney Robert M. Morgenthau, where he became chief of the labor-racketeering unit, spending six years pursuing organized crime. His biggest case came in 1992, when Spitzer led the investigation that ended the Gambino organized crime family's control of Manhattan's trucking and garment industries.

Spitzer devised a plan to set up his own sweatshop in the city's garment district, turning out shirts, pants and sweaters, and hiring 30 laborers. The shop manager eventually got close to the Gambinos, and officials were able to plant a bug in their office. The Gambinos, rather than being charged with extortion, which was hard to prove, were charged with antitrust violations. Thomas and Joseph Gambino and two other defendants took the deal and avoided jail by pleading guilty, paying $12 million in fines and agreeing to stay out of the business.[4]

Spitzer left the DA's office in 1992 to work at the law firm of Skadden, Arps, Slate, Meagher & Flom, where he stayed until 1994. From 1994 to 1998 he worked at the law firm Constantine and Partners on a number of consumer rights and antitrust cases that were widely considered innovative and/or aggressive.

[edit] Political career

In 1994, Spitzer put aside his private practice to concentrate on attaining the elected office of New York Attorney General. He failed in the 1994 election, but was successfully elected in the next election in 1998. He has since become one of New York's most recognizable Democratic politicians. On November 7th, 2006 he was elected Governor of New York.

[edit] Campaigns for Attorney General

In 1994, long-serving Democratic New York State Attorney General Robert Abrams decided to leave office after having unsuccessfully challenged Al D'Amato for the seat of U.S. Senator from New York in 1992. When several Democrats saw weakness in Abrams's replacement as Attorney General, G. Oliver Koppel, they ran for the party's nomination, Spitzer among them. At the time, he was young and unknown, and, despite his being funded heavily by his own family, his campaign ended when he placed last among four candidates for the nomination. Judge Karen Burstein won. But Burstein subsequently lost to Republican Dennis Vacco in the general election, part of a Republican sweep that also included George Pataki.

That election of a Republican in 1994 allowed Spitzer to run again in 1998. Now more experienced in party politics, while again relying on family financing, he won the Democratic primary, defeating Koppell, State. Sen. Catherine Abbate, and former Governor's Counsel Charles Davis. He went on to defeat the incumbent Vacco, winning narrowly by 48.2% of the vote to Vacco's 47.6%. He ran for re-election in 2002, facing only token opposition from Republican Judge Dora Irizarry. Spitzer won with 66% of the vote.

[edit] Work as Attorney General

As Attorney General, Spitzer stepped up the profile of the office, taking on cases that an Attorney General would normally avoid. Traditionally, state attorneys general have pursued consumer rights cases, concentrating on fraud that is local and unique, while deferring national issues to the federal government, which traditionally holds jurisdiction over them. Breaking with this traditional deference, Spitzer took up civil actions and criminal prosecutions of white-collar crime, securities fraud, internet fraud, and environmental protection.

A number of experts, including economists, lawyers, and political analysts have offered explanations for Spitzer's active role in public policy debates. The New York Attorney General's office has Wall Street (and thus many leading corporate and financial institutions) within its jurisdiction. Also, the New York Attorney General wields greater than usual powers of investigation and prosecution with regard to corporations under New York State's General Business Law. In particular, under Article 23-A, § 352 (more commonly known as the Martin Act of 1921) the New York Attorney General has the power to subpoena witnesses and company documents pertaining to investigations of fraud or illegal activity by a corporation.

Spitzer used this authority in his civil actions against corporations and criminal prosecutions against their officers. It proved its usefulness in the wake of several American corporate scandals that began with the collapse of Enron in 2001. In these scandals, several corporations, as well as the brokerage houses that sold their stock, were accused of having inflated stock values by unethical means throughout the 1990s. When inquiries into the allegations by the SEC and the Congress failed to gain traction, Spitzer's office used its subpoena power to obtain corporate documents, building cases against the firms both in courtrooms and in public opinion.

Spitzer used a New York statute to allow his office to prosecute cases which have been described as within federal jurisdiction.[5][6] In January 2005, the president of the U.S. Chamber of Commerce described Spitzer's approach as "the most egregious and unacceptable form of intimidation we've seen in this country in modern times."[7]

[edit] Notable cases

In addition to prosecutions and civil actions in the financial sector, Spitzer has pursued cases in both state and federal courts involving pollution, entertainment, technology, occupational safety and health and other fields in which New York plays a part in setting and maintaining national standards of conduct.

[edit] Computer manufacturing

[edit] Securities

  • Late Trading & Market Timing Investigations (2003): Investigations by the office of Eliot Spitzer beginning in 2003 uncovered mutual fund brokers allowing select clients privileges deprived to ordinary customers. Spitzer targeted two practices in particular: "late trading" which allows hedge fund investors to file trades at the previous day's price after the market close, something ordinary customers cannot do; and "market timing" which allows privileged investors to buy and sell shares in funds more frequently than allowed under the fund's rules. The implications of these practices are that the brokerages and a small number of investors profit at the expense of other fund shareholders. In essence, by placing winning trades the privileged investors diluted the profit pool available to all fund shareholders while they sidestepped their share of the pool's losses. Their trading also increased administrative fees borne by ordinary customers and caused fund managers to increase the cash they held to meet liquidity needs. Through a number of prosecutions and lawsuits, Spitzer secured more than one billion dollars in fines and remuneration for investors as well as forcing reforms to eliminate the practice.

[edit] Insurance

  • Contingent commissions (2004): In the commercial insurance business "contingent commissions" or "overriders" are fees paid based on the volume and profitability of insurance business generated by brokers. They provide incentive for agents and brokers to underwrite carefully as contingent commissions often serve as rewards for good loss ratios. Without contingency commissions, there is little incentive for agents or brokers to be selective in the risks that they submit to companies. However, some argue that contingent commissions may provide an incentive for insurance brokers to recommend more costly insurance to their clients, presenting a conflict of interest. While many large brokerages such as Marsh & McLennan Companies (against whom Spitzer filed his original suit), Aon and Willis announced plans to stop the practice of contingent commissions, many argued that the practice was not to blame for the rigged bids uncovered by Spitzer. Indeed, the practice accounted for about only five to seven percent of total revenues for brokers and did address a traditional misalignment of interests in insurance between the carrier and the producer. Under a traditional flat commission structure the latter has less incentive to submit risks with an eye for long-term loss potential in mind. So-called finite insurance products, which may more closely resemble a loan than insurance, were also investigated, even if there was "transference of risk" involved.[citation needed]
  • American International Group (2005): On May 26, 2005, Spitzer filed a civil complaint against Maurice R. "Hank" Greenberg, (Chairman and CEO), and Howard I. Smith, (ex-CFO of AIG), alleging fraudulent business practice, securities fraud, common law fraud, and other violations of insurance and securities laws. Despite tough talk on a television news show, Spitzer declined to bring any criminal charges against Greenberg, and two of the civil charges were dropped in September 2006.[8]
On December 22, 2005, John C. Whitehead, chairman of the Lower Manhattan Development Corporation, alleged that Spitzer had threatened him during a telephone call that took place in April 2005. In a letter to the The Wall Street Journal, Whitehead alleged that Spitzer called him regarding a Wall Street Journal opinion piece that he wrote about Spitzer's public comments regarding Maurice R. Greenberg. According to the allegation, Spitzer threatened, "Mr. Whitehead, it's now a war between us and you've fired the first shot. I will be coming after you. You will pay the price. This is only the beginning and you will pay dearly for what you have done. You will wish you had never written that letter."[9] Spitzer has denied the allegation.[10]
  • The insurance investigation started by Spitzer spread to other states. Illinois Attorney General Lisa Madigan announced a parallel investigation of insurance brokerages headquartered in Chicago, which led to substantial out-of-court settlements from AJ Gallagher and Willis. Although the practices of these insurance brokerages did not violate criminal law, they violated the code of professional ethics required by the state to obtain licenses. One of the practices alleged by Madigan was "steering" insurance clients to purchase insurance policies that would produce higher commissions for the brokerage.[citation needed]

[edit] Entertainment

  • Music Royalty Settlement (2004): Through an investigation of music industry practices, Spitzer's office uncovered $50 million in royalties owed to musicians whose record labels had failed to keep in contact with them. Under New York State's Abandoned Property Law, those royalties not being sent to their rightful owners would have to be surrendered to the state. Under a settlement, the labels were required to take measures to contact artists owed royalties.[citation needed]
  • Payola Settlement: The office of Eliot Spitzer served subpoenas against record labels in an investigation into "payola," the illegal compensation of radio stations for playing certain songs. These subpoenas uncovered deals for disc jockeys to receive gifts from promoters in exchange for playing the songs a certain number of times during the day. On July 25, 2005, Spitzer announced an agreement with Sony BMG Music Entertainment to halt the practice. In November 2005, a similar settlement was announced with Warner Music Group.[11]

[edit] Abortion

  • In 2002, Spitzer's office issued subpoenas to 24 non-profit crisis pregnancy centers that sought to dissuade women from having abortions. Pro-life groups criticized Spitzer, charging that he was harassing the centers on behalf of a political ally, NARAL Pro-Choice America. Spitzer's office contended that the centers used deceptive advertising and were practicing medicine without a license.[12] However, the subpoenas were subsequently withdrawn.

[edit] Campaign for Governor of New York

Main article: New York gubernatorial election, 2006

Spitzer was elected Governor on November 7, 2006, with 69% of the vote. He faced Republican John Faso and John Clifton of the Libertarian Party of New York among others.

On December 8, 2004 Spitzer announced his intention to seek the Democratic nomination for Governor of New York in 2006. While long rumored, Spitzer's announcement was unusually early—nearly two years before the election. Some opined that Spitzer's early announcement was motivated by a desire to learn if Senator Charles Schumer, a more senior Democrat, would run. But Schumer, largely favored in opinion polls in a hypothetical matchup against Spitzer, had announced in November that he would not run for Governor, but would, rather, accept an offer to sit on the powerful Finance Committee and head the Democratic Senatorial Campaign Committee. After Schumer's announcement, Democrat Andrew Cuomo announced his plans to run for the Attorney General's seat vacated by Spitzer. Spitzer won early endorsements, including, on January 22, the endorsement of the Working Families Party, which has purported to act as kingmaker of Democratic nominees. The party has been heavily backed by figures from community groups, e.g., ACORN and labor unions, particularly those that once broke from the AFL-CIO to form the Change to Win Federation. In the months after the WFP endorsement, several Change to Win unions announced that they were endorsing Spitzer under their own name, e.g., UNITE HERE, the Teamsters, and the United Food and Commercial Workers.

In the latter half of 2005, Spitzer sought to further solidify support for his campaign by touring the state, seeking and giving political endorsements. These included cross-endorsements with former Bronx Borough President Fernando Ferrer in the 2005 New York City mayoral election, 2005; Matthew Driscoll in the Syracuse, New York, Mayoral election; and State Senator Byron Brown in the Buffalo, New York, Mayoral election. The benefits to Spitzer in these deals was the valuable media attention which accompanied his stumping for those candidates, as well as gaining local endorsements to help win the party primary.

As a result of Spitzer's relative speed in bringing state Democrats to his side, he gained the respect of Democratic leaders nationwide. Such a leader, Bill Richardson, dubbed Spitzer the "future of the Democratic Party" at a fundraiser held in June 2005 for Spitzer's gubernatorial campaign.[13] A June 2006 Quinnipiac poll[14] showed him leading Nassau county executive Thomas Suozzi 76-13 percent, indicating that he had all but secured the nomination.

Much of the attention of watchers of New York politics then turned to the state Republican Party, especially the future of three-term governor, George Pataki. Polling throughout 2004 and into 2005 consistently showed Spitzer defeating Pataki in theoretical matchups. Such a scenario might have proved unappealing to Pataki. In July 2006 Pataki was rumored to be making overtures toward seeking the Republican nomination for the U.S. presidency in 2008. Whether or not these rumors were true, Pataki announced on July 27, 2005 that he would not seek reelection.

The open-seat nature of the election, along with Spitzer's positive poll numbers, and the advantage Democrats have in New York State fueled the Republican leadership's discussions of the active pursuit of candidates to run against Spitzer. By June, 2006 two people had announced their intent to run for the nomination: former New York Assemblyman John Faso, who was officially endorsed at the 2006 New York State Republican Party Convention and former Masschusetts Governor William Weld, who is a native New Yorker. Shortly after the convention Weld dropped out of the race for the Republican nomination.

An additional consideration for Spitzer was the status of billionaire businessman Tom Golisano, a three-time Independence Party candidate. It was rumored that Golisano might run again, and that Republican Party insiders would seek to nominate him as a Republican, thus fusing the Republican and Independence tickets for the first time in a gubernatorial election. Golisano recently switched his party affiliation to the GOP. However, on February 1, 2006 Golisano announced that he would not run for governor.[15]

In January, 2006 Spitzer selected New York State Senate minority leader David Paterson as his choice for Lieutenant Governor and running mate. In New York gubernatorial elections the most important consideration in a gubernatorial candidate's choice of a lieutenant governor is often said to be the need to "balance the ticket", thereby widening the candidate's appeal, by, e.g., choosing someone from a different geographic area, ethnic background, or with a different political base. Such a practice is common in other states, as well as in Presidential elections.

After announcing his candidacy, Spitzer was endorsed by numerous New Yorkers including state Comptroller Alan Hevesi and two former New York City Mayors: David Dinkins and Ed Koch (who had endorsed President Bush in 2004). In February, 2006 Spitzer got the endorsement of businessman Donald Trump, who had been courted by the Republicans to run against him.

On May 30, 2006, Spitzer and Paterson won the endorsement of the New York State Democratic party.[16] He still, however, had to face Suozzi in the Democratic primary.

On July 25, 2006 he faced Suozzi in a gubernatorial debate held at Pace University in Manhattan, discussing issues such as public authorities and Medicaid.[17]

Spitzer surprised many New Yorkers when, upon being asked about marijuana, he stated that he disagrees with medical use of marijuana since other medicines are more effective.[18]

On the week of August 24, he and Suozzi participated in a cable TV "town hall" forum at Pace University. Spitzer actually participated from Rochester, where he was visiting as part of a campaign tour across the state.

In the Democratic primary, held on September 12, 2006 Spitzer handily defeated Suozzi, securing his party's nomination with 81% of the vote.

On October 5 Spitzer, addressing the Empire State Pride Agenda, declared that as governor he would work to legalize gay marriage in New York.[19]

Spitzer won a landslide victory in the election with 69% of the vote. It was the largest margin of victory in a gubernatorial race in New York history, and the second-largest for any statewide race in New York history. The only larger victory was Chuck Schumer's 71% victory in his successful reelection bid for the U.S. Senate two years earlier. Spitzer carried all but three counties in the state.

[edit] Governor of New York

At the traditional midnight ceremony, Spitzer was sworn in as governor of New York on January 1. A public ceremony was held at 1 PM on the same day which featured brass and percussion players from the Empire State Youth Orchestra[20] Bucking tradition, the ceremony was held outdoors—the first outdoor inauguration ceremony in New York for over a century.[21] He publicly took the oath at 1:24 PM on that "grey but glorious January day." Afterwards he attended a concert at the Times Union Center in his honor, headlined by James Taylor.

[edit] Reform

Spitzer's reform-based platforms hit an early roadblock when his pledge "to change the ethics of Albany" was defeated in state legislature. According to the New York State Constitution it is the duty of the state legislature to fill executive vacancies. The Governor was criticized as unreasonable for admonishing the legislature when it took constitutional actions. The appointment of state assemblyman Thomas DiNapoli to succeed disgraced Alan Hevesi was a serious blow to the new governor. Spitzer had backed an outside panel to draft a list of qualified candidates. The legislature revolted when the panel failed to select one of its own.[22]

Since the "steamroller" comment, Spitzer has traveled to the home districts of various Democratic assembly members to publicly criticize them for their vote on DiNapoli. He visited the region of Syracuse Assemblyman William B. Magnarelli, and George S. Latimer of Westchester County and has plans to continue his pressure.[23][24]

[edit] Statewide tickets Spitzer has run on

[edit] 1998 Democratic ticket

[edit] 1998 Liberal Party ticket

  • Governor: Betsy McCaughey Ross
  • Lieutenant Governor: Jonathan Reiter
  • Comptroller: Carl McCall
  • Attorney General: Eliot Spitzer
  • U.S. Senate: Charles Schumer

[edit] 2002 Democratic ticket

[edit] 2002 Independence Party ticket

[edit] 2006 Democratic Party ticket

[edit] 2006 Independence Party ticket

[edit] 2006 Working Families Party ticket

[edit] Electoral history

  • 2006 Race for Governor - General Election
  • 2006 Race for Governor - Democratic Primary
  • 2002 Race for Attorney General
    • Eliot Spitzer (D, I,L, WFP), 66%
    • Dora Irizarry (R, C), 29%
    • John J. Broderick (RTL), 2%
    • Mary Jo Long (Green), 1%
  • 1998 Race for Attorney General
    • Eliot Spitzer (D, L), 48.2%
    • Dennis Vacco (R, C), 47.6%
    • Catherine Abate (I), 2%
    • Robert W. Dapelo (RTL), 1%

[edit] See also

[edit] References

  1. ^ Hakim, Danny, New York Times, A Gilded Path to Political Stardom, With Detours, October 12, 2006. Abstract retrieved January 1, 2007.
  2. ^ Hakim, Danny, New York Times, A Gilded Path to Political Stardom, With Detours, October 12, 2006. Retrieved February 1, 2007.
  3. ^ Healy, Patrick, New York Times, An Ill-Timed Candidate Believes His Time Is Now, October 18, 2006. Retrieved January 1, 2007.
  4. ^ Ignatius, Adi. "Wall Street's Top Cop", Time, Dec. 30, 2002. Retrieved on November 4, 2006.
  5. ^ Kroft, Steve. "The Sheriff Of Wall Street", CBS News, May 25, 2003. Retrieved on November 4, 2006.
  6. ^ Keating, Raymond J.. "Spitzer's 'federalist papers' are onerous", Newsday, August 21, 2006. Retrieved on November 4, 2006.
  7. ^ "U.S. group is taking on Spitzer", International Herald Tribune, January 6, 2005. Retrieved on November 4, 2006.
  8. ^ "Two charges against AIG’s Greenberg dropped", Associated Press, September 6, 2006. Retrieved on November 4, 2006.
  9. ^ Whitehead, John C. "Scary", The Wall Street Journal, December 22, 2005. Retrieved on November 4, 2006.
  10. ^ Newsday story
  11. ^ Ulaby, Neda. "Warner Agrees to Settlement in Payola Investigation", NPR, November 23, 2005. Retrieved on November 4, 2006.
  12. ^ Cooperman, Alan. "Abortion Battle: Prenatal Care or Pressure Tactics?", The Washington Post, February 21, 2002. Retrieved on November 4, 2006.
  13. ^ "Richardson praises Eliot Spitzer as "future" of Democratic Party", Associated Press, June 2, 2005. Retrieved on November 4, 2006.
  14. ^ "Faso Convention Bubble Goes Flat In Gov Race, Quinnipiac University New York State Poll Finds; Spitzer Still Has 40-Point Lead Over Faso, Suozzi", Associated Press, June 21, 2006. Retrieved on November 4, 2006.
  15. ^ Mahoney, Joe. "Golly, Golisano won't run for gov", New York Daily News, February 1, 2006. Retrieved on November 4, 2006.
  16. ^ Hakim, Danny. "Convention Notebook; Controversy Over Ground Zero's Fate Is Front and Center in Buffalo", The New York Times, May 30, 2006. Retrieved on November 4, 2006.
  17. ^ Robin, Josh. "Spitzer, Suozzi Face-Off In Sole Gubernatorial Debate", NY 1 News, July 25, 2006. Retrieved on November 4, 2006.
  18. ^ Gray, Geoffrey. "Spitzer Chokes on Pot Deal", New York Magazine, August 14, 2006. Retrieved on November 4, 2006.
  19. ^ Hakim, Danny. "Spitzer Vows to Push for Gay Marriage", The New York Times, 7 October 2006. Retrieved on November 4, 2006.
  20. ^ Cooper, Michael. "Amid Champagne and Cheers, Spitzer Is Sworn in as Governor", New York Times, 2007-01-01.
  21. ^ Bloomberg, Spitzer, Sworn in as New York Governor, Vows Historic "Reform", January 1, 2007.
  22. ^ Cooper, Michael. "Legislators Pick a Comptroller, Defying Spitzer.", New York Times, 2007-02-08. Retrieved on February 12, 2007.
  23. ^ New York Daily News, Bulldog Spitzer rips pol, BY AUSTIN FENNER and JOE MAHONEY, Monday, February 12th, 2007
  24. ^ New York Times, On Tour to Talk Up Budget Plan, Spitzer Stays on Attack, By DANNY HAKIM, Published: February 13, 2007

[edit] External links

[edit] Official sites

[edit] Nonpartisan

[edit] Biographies and profiles

[edit] Interviews

[edit] Media coverage

[edit] Critics

Preceded by
Dennis Vacco		 New York State Attorney General
1999 - 2007		 Succeeded by
Andrew Cuomo
Preceded by
George Pataki		 Governor of New York
2007 -		 Succeeded by
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Persondata
NAME Spitzer, Eliot Laurence
ALTERNATIVE NAMES
SHORT DESCRIPTION New York State Attorney General and Governor of New York
DATE OF BIRTH June 10, 1959
PLACE OF BIRTH Riverdale, Bronx, New York City, NY
DATE OF DEATH
PLACE OF DEATH
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