Top Stories

Feds Investigate Spitzer's Use Of Campaign Funds

Mysterious Reservations At Luxury Hotels During 'Official Business' Sparks IRS Investigation

NEW YORK (CBS) ― Investigators are taking a closer look at a list of hotels Gov. Eliot Spitzer stayed in while on official business, and whether the former prosecutor hooked up with call girls while supposedly conducting business.

On the list of possible leads is a hotel right here in Manhattan.

Did Spitzer use campaign funds to pay for his trysts with high-class prostitutes? According to sources close to CBS 2 HD, federal prosecutors have initiated an investigation into his campaign expenditures for hotels and ground transportation.

Published reports indicate that in addition to an alleged Washington tryst with the prostitute known as 'Kristen,' Spitzer may have also met with prostitutes in Dallas and Florida in recent months.

"IRS is conducting a complete and thorough investigation to determine where the funds came from," said Ronald Fischetti.

CBS 2 HD looked at Spitzer's campaign filings, and while it is not immediately clear whether he met with prostitutes, it is clear that the campaign paid for hotel rooms in various places last year:

*The 'Hay Adams' in Washington D.C. on March 6.

*The 'Hotel Monaco' in Seattle on July 25 and July 30.

*The 'Hyatt Denver' on Sept. 20.

*The 'Peninsula Beverly Hills' for two rooms each on May 18 and June 1.

*The 'Grand Hyatt' in New York City on Feb. 21 and March 30 of last year.

Prosecutors may find it odd that Spitzer needed rooms at the 'Hyatt' when his residence is in New York City.

"It comes as no surprise the prosecutor's office is carefully weighing all the facts," said noted attorney Gerald Shargel.

It comes as no surprise that the prosecutor's office is carefully weighing all the facts.

If he used his personal funds for hiring call girls than he could possibly escape charges, but if he's using campaign funds or if he's using taxpayer funds, that's quite another matter and they're not going to negotiate any kind of deal unless they trace the source of the money," said Fischetti.

According to a member of the governor's inner circle, Spitzer is crushed by what has happened and is hoping his crack legal team can get him off without any criminal charges.

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)

---