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New York Governor Eliot Spitzer Allegedly Involved in Prostitution Ring.

Aired March 10, 2008 - 15:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


DON LEMON, CNN ANCHOR: He's known as a crime-fighter, a reformer. Today, startling news about New York Governor and former New York Attorney General Eliot Spitzer, and it involves a prostitution ring.
BETTY NGUYEN, CNN ANCHOR: Yes, we are waiting for the governor to take to the microphone any minute now.

Meantime, though, good afternoon, everybody. From the CNN World Headquarters in Atlanta, I'm Betty Nguyen, in for Kyra Phillips.

LEMON: And I'm Don Lemon.

We're following breaking news right here in the CNN NEWSROOM. Following that breaking news for us from New York, Allan Chernoff, our correspondent there.

Allan, we're awaiting this press conference. Any word on what's going on?

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Well, we're still waiting to hear. We have not heard exactly when this is going to begin. "The New York Times" had initially reported that the press conference would begin at 2:15 in the afternoon. Obviously, we're 45 minutes from that time period.

But the stunning news coming on the Web site of "The New York Times" -- "The Times" reporting that Eliot Spitzer had some involvement with a prostitution ring, that he is going to make that announcement, and also "The Times" quoting one unnamed source as saying apparently the governor of New York had been a customer of this prostitution ring, and this apparently related to some arrests made last week.

The governor apparently, according to this report, wants to be preemptive, make the announcement himself, instead of having the announcement come from elsewhere. But it's a total shock. Obviously, it would be a shock in any event, but particularly Eliot Spitzer, because this man won a landslide victory to become governor after being essentially Mr. Clean when he was the attorney general of New York State. He had been since 1998.

And he really had a record of enforcing a lot of ethics cleanups, fighting Wall Street, fighting the insurance industry and organized crime, and even some prostitution rings as well. So, this really just an incredible, incredible stunner here in New York State. And this, if it is true, clearly could -- could possibly end the political career of Governor Eliot Spitzer.

LEMON: Yes, definitely derail that career.

The interesting thing is, though, Allan, that we're trying to all figure out here is what was investigated --

CHERNOFF: I'm sorry. I'm having a little bit of trouble hearing you.

LEMON: Allan, can you hear me?

Allan can't hear us.

So we will let you go.

But, again, if you're just joining us, want to tell you, the New York governor, Eliot Spitzer, has called his staff together this morning, according to "The New York Times," and informed them that he had links to a prostitution ring, again, according to "The New York Times." And we're awaiting a press conference from Eliot Spitzer at any moment now, so that he can respond to these allegations -- Betty.

NGUYEN: Yes, this is a man who is married with three children. This is a man known to bring ethics reform to a politics there in New York and also a man that Jeffrey Toobin, CNN senior legal analyst, went to law school with, and we spoke with Jeffrey just a little bit earlier.

And this was his reaction.

(BEGIN VIDEO CLIP)

VOICE OF JEFFREY TOOBIN, CNN SENIOR ANALYST: It's a shock is an understatement. All he ever wears is white shirts. And he has made moral rectitude the hallmark of his public persona. He has been -- you know, he was best known and most successful as the attorney general of New York, where he took on Wall Street, and, you know, he is known for being very moralistic.

And I think his many enemies, and he has plenty of them, will seize on the issue of hypocrisy, of someone who at the same time as, you know, criticizing the ethics and morals of others, if this is true, is a client of a prostitution ring. Now, what that means for his political career, whether he resigns, whether he runs for reelection, whether he -- you know, what the future is, if he's prosecuted, if he's not, I don't know any of those things. But, certainly, it's a big, big shock.

(END VIDEO CLIP)

NGUYEN: It's definitely a shock. And a lot of people still trying to get some information into the details of this link to a prostitution ring.

We just want to let you know, according to "The New York Times," this is where we're getting the bulk of our information here right now as we wait for that news conference, just last week, federal prosecutors arrested four people in connection with an extensive prostitution investigation. But administration officials would not say that this was the ring with which the governor may be involved.

So, we're still waiting to determine the exact details of this and find out exactly how the governor was involved or linked to this prostitution ring. But, nonetheless, this obviously is sending shockwaves through the political realm there in New York and, in fact, around the nation, as Eliot Spitzer, not only the governor, but was attorney general, and, in fact, prosecuted at least two prostitution rings as head of the state's organized crime task force.

LEMON: Yes, at least. And we have been telling you what "The New York Times" has been reporting. And also there's some other information that's according to the Associated Press.

The Associated Press is saying, "The Times" reported that a person with knowledge of the governor's role believes the governor is identified as a client in court papers, again, all this information according to the Associated Press. Four people allegedly connected to a high-end prostitution ring called Emperors Club VIP were arrested last week.

The Web site on Emperors Club VIP displays photographs of the scantily-clad women. Obviously, if -- anyone in that business would have that on their Web site, with their faces hidden along with hourly rates depending on whether the prostitutes were rated with one diamond or higher the lowest ranking. Seven diamonds was the highest.

Mostly high-ranked, they say on this site, prostitutes cost about $5,500 an hour. And that is according to the case. That was last week. But, again, "The New York Times" reporting, also, the Associated Press is saying, that the person with knowledge of the governor's role believes the governor is identified as a client in court papers.

So, very interesting information coming out of this. But the group that I just mentioned has been widely reported in "The New York Times." It is the one that was reported last week, when "The New York Times" charged four -- four with running an online prostitution ring and that online prostitution ring is the one that I mentioned earlier.

But, again, the governor, according to "The New York Times," has called in his senior aides and has said, you know, that he was linked to this prostitution ring. And we're waiting to hear from him in a press conference at any moment, Betty.

NGUYEN: And CNN's Allan Chernoff has been following the story, just as we have, as soon as news broke of it according to "The New York Times" saying that Eliot Spitzer is linked to a prostitution ring.

Allan joins us live.

Allan, I mean, as we're waiting for this news conference, obviously, it's been delayed a little because shockwaves have been sent through not only the media, but through the political realm, in dealing with the news of a governor being linked to a prostitution ring. What are you hearing about the details of it? Have you been able to scratch that surface?

CHERNOFF: Thus far, we haven't been able to confirm what "The New York Times" has, which as you have been saying and the AP, which is basically that he has been linked to a prostitution ring, that -- reportedly that he supposedly was one of the clients of a very exclusive prostitution ring, an expensive one.

But, frankly, everybody around here is stunned. And I should point out, too, the fact that this press conference hasn't started on time, that should not be a shock at all. We don't really know exactly when it will begin. It could be delayed.

I mean, the governor may be trying to figure out, with his aides, exactly what to do beyond revealing this absolutely stunning information. Does he actually step down, if all of this is true? If that were to be the case, the lieutenant governor, David Paterson, would take over. He is the former minority leader of the Senate here, an African-American from Harlem.

And that also would be would be news, would be huge news, to have an African-American leading New York State, after this incredible scandal. So, we are all waiting to hear from the governor himself.

NGUYEN: Going back to this prostitution ring, the one that Don was mentioning a little bit earlier and the one that's been in the news lately for four people being charged with running this online prostitution ring, was there some sort of news out of that that was going to be made this week or some time soon that may have been prompted the governor to go ahead and say, you know what, I'm going to step out in front of this and make this announcement myself?

CHERNOFF: Clearly. That could be the only reason that he would come forward with this sort of stunning news, that he perhaps was identified.

According to "The Times," they are saying that a person with knowledge of the governor's role said that they believe the governor is actually one of the persons identified in court papers as a client of this ring, the Emperors Club VIP.

NGUYEN: Well, Allan, we are just under two minutes from hearing from Eliot Spitzer in this live news conference. We do have microphones set up there. And it's obviously going to be something of keen interest to a lot of people across the nation today. But, very quickly, this is a man who is known for ethics. This is a man who is married with children.

CHERNOFF: Three children. He's often spoken of his wife, Silda. She's often seen in public with him. I mean, this is a guy who had just an A-plus resume throughout, Harvard Law, perfect score on the LSATs, the entrance exam for law school, then worked under the legendary Robert Morgenthau at the Manhattan DA's office, prosecuted organized crime cases there, went on to become the state attorney general, very, very successful and hard-hitting attorney general.

Many cases won against Wall Street, forced Wall Street firms to pay hundreds of millions of dollars in fines. He was pretty much the guy who was perceived to be the one cleaning up Wall Street, cleaning up also scandals in other areas as well. And here he is, with just a shocking revelation that we are anticipating hearing shortly.

NGUYEN: And you had not heard any time in the near past that there was any problems with his marriage, that there was anything that may have led to -- I don't even know what would lead you to go to such a thing as a prostitution ring -- but that maybe they were on the outs in some way, he and his wife?

CHERNOFF: You know, the attention surrounding Eliot Spitzer recently has been more around just political scandals. I mean, he was -- he was just an incredible hit as attorney general. And he did win the election to become governor by a record landslide. He got 69 percent of the vote, most ever in a New York state gubernatorial race.

But, as governor, he hasn't really been quite the hit. He came in trying to steamroll his way through. And he has not been able to do that. Indeed, his biggest scandal to date was the revelation that his aides had been trying to tarnish the reputation of Joseph Bruno, the Senate leader, the top Republican in the state. That really has hurt him politically. So, he's had some real problems.

NGUYEN: Allan, I'm going to interrupt you here, because we understand that New York Governor Eliot Spitzer is walking in right now. He will walking up to the mics.

And we will take a listen.

(JOINED IN PROGRESS)

GOV. ELIOT SPITZER (D), NEW YORK: We sought to bring real change to New York. And that will continue. Today, I want to briefly address a private matter. I have acted in a way that violates my obligations to my family, that violates my or any sense of right and wrong.

I apologize first and most importantly to my family. I apologize to the public, whom I promised better. I do not believe that politics in the long run is about individuals. It is about ideas, the public good, and doing what is best for the state of New York.

But I have disappointed and failed to live up to the standard I expected of myself. I must now dedicate some time to regain the trust of my family. I will not be taking questions. Thank you very much. I will report back to you in short order. Thank you very much.

LEMON: He didn't say, Betty, whether or not he would be stepping down as governor of New York. But he said that he acted in a way that violated his obligation to his family, apologized to his family and to the public, and that he would get back to us and let us know. But he said that he failed the standards of himself.

NGUYEN: That he's expecting.

LEMON: So, it's very interesting.

(CROSSTALK)

NGUYEN: There was no there was no terminology in there, there was no wording that linked him or that he says linked him to this prostitution ring that we have been reporting, according to "The New York Times." So, it's very interesting that he chose those words, but left them very vague.

LEMON: Well, obviously not denying it. So, you know, and it's very obvious from his words what is going on. And we don't have to put words in his mouth, because he absolutely said it.

Allan Chernoff, I don't know if you're still standing by, if you were listening to that press conference there in New York at City Hall. Did you hear the governor's statements?

CHERNOFF: I did hear that. And he basically just offered the apology, and you also heard him say that he believes politics is not about individuals; it's about policies and the public good.

That sounded to me like an effort -- an effort by the governor to remain in place. Obviously, he did not announce any resignation there -- here. But it really sounds like he's hoping to survive all of this.

But he really did not give anything in that press conference other than an apology. And he also said, I will be reporting back to you.

LEMON: Yes.

CHERNOFF: So, apparently, he hopefully will be providing further detail. But...

LEMON: Well, yes, he said he would report back, but he said -- this is a key -- "I have acted in a way that violates my obligation to my family."

And, Allan, we are going to listen to it and then we will talk about it. Let's listen to his statement given just moments ago.

(BEGIN AUDIO CLIP)

SPITZER: I have acted in a way that violates my obligations to my family, that violates my or any sense of right and wrong. I apologize first and most importantly to my family.

I apologize to the public, whom I promised better. I do not believe that politics in the long run is about individuals. It is about ideas, the public good, and doing what is best for the state of New York.

But I have disappointed and failed to live up to the standard I expected of myself. I must now dedicate some time to regain the trust of my family. I will not be taking questions. Thank you very much. I will report back to you in short order. Thank you very much.

(END AUDIO CLIP)

LEMON: The governor of New York, Eliot Spitzer, at City Hall in Manhattan -- he has an office there -- just moments ago speaking out about this prostitution ring-link scandal that was reported by "The New York Times," not saying that he's going to resign, but only saying that he needs some time to work this matter out with his family and to think .

And the first words out of his mouth was, "I have acted in a way that violates my obligation to my family" and that he would get back to us on how he would continue.

NGUYEN: Well, CNN's Jason Carroll is outside the governor's office there in New York. And he joins us now by phone.

Jason, we just learned what the governor said, and just those brief statements there saying that he has acted in a way that violates his obligation to his family. But there was no direct wordage that mentioned a prostitution ring in any form or fashion.

JASON CARROLL, CNN CORRESPONDENT: No mention of that at all. And what was interesting about that, I don't know if you could hear it there in the press room, but when the governor came out and made his statement and started speaking, he had indicated how this -- how he had violated his family, violated his sense of right and wrong, and that he wanted to apologize.

And, at that moment, there were several reporters that screamed out, well, then, do it. Apologize. You could actually hear some of that anger in the room. And, at that point, he did say, I want to apologize to the public, pointing out that -- how badly he had disappointed not only himself, but also you got a clear indication that he was not going to resign, that he was going to use this opportunity to try to rebuild the public trust.

How he is going to do that -- according to a lot of people who follow the governor very closely, it's going to be very, very difficult for him. He's already been involved in one scandal before this, how one of his aides allegedly was investigating the majority leader, the Republican majority leader, Joseph Bruno. He's the state's top Republican.

His approval ratings are...

NGUYEN: Jason, are you still there?

Obviously, we're having some technical difficulties, and we have lost CNN's Jason Carroll, who is outside that news conference where we just heard Governor Eliot Spitzer apologize to the public and tell his family that he's violated the obligation that he has to it; also saying that he's failed to live up to the standards that he has expected. But, he went on to say that politics is not about individuals, it's about the public, which is an indication that he's going to fight this and going to try to continue to save his political career in light of the news today, according to "The New York Times," that Eliot Spitzer is linked to a prostitution ring.

Obviously, we're going to gather more information about the details of that, what kind of link are we talking about here. Well, that's what we're trying to figure out at this hour.

LEMON: And, Betty, if you were listening, you heard Jason say the reporters there were saying, well, why don't you just apologize?

NGUYEN: Apologize.

LEMON: But when he said, "I'm sorry," I could hear the gasps there from people there going, oh, you know, because it's -- we have been talking to reporters and people who have covered Eliot Spitzer about his character. And this is really the last thing that many of those who thought they knew him thought would happen.

Our Justice Department correspondent, Kelli Arena, joins us now. She joins us now from Washington.

And, as I understand, Kelli, there was a case involving the Justice Department and prostitution last week, correct?

KELLI ARENA, CNN JUSTICE CORRESPONDENT: That's right, Don.

Prosecutors in the Southern District of New York charged four individuals with allegedly participating, leading a prostitution ring that was known as the Emperors Club VIP.

Now, that ring provided prostitutes that cost as much as $3,100 an hour. They actually priced from $1,000 to $3,000 an hour. Authorities said that the defendants basically arranged connections between very wealthy men, obviously, and more than 50 prostitutes in New York, Washington, D.C., Los Angeles, Miami, London, and Paris.

Now, this criminal complaint didn't name any customers at all. But authorities did intercept, according to the complaint, text e- mails, cell phone calls, telephone calls. And the complaint does refer to other individuals known and unknown.

One would assume that the investigation is ongoing at this time. We have tried repeatedly to try to get anyone to budge on whether there's a connection here. No one is talking. No one wants any part of this at this point. Obviously, there have not been any other charges that we know of filed in this case. And, as I said, if this investigation is ongoing, people are going to be really hesitant to talk about that -- Don.

LEMON: Hey, Kelli, I don't want to catch you off guard here because I know this is unfolding. And this is really...

(CROSSTALK)

ARENA: It's OK. Happens all the time. (LAUGHTER)

LEMON: This is "The New York Times"' bailiwick, because they broke the story. But I'm just getting the latest information from "The New York Times." And if you don't know now, perhaps you can respond to it and find out.

What they are saying now is that he has been caught up in a federal wiretap arranging to meet with a high-priced prostitute. Again, I want to make this clear, Kelli. This is according to "The New York Times."

ARENA: Right.

LEMON: That there was some sort of wiretap at the Washington hotel last month. And that was according to a person briefed on the federal investigation. So, this is all really turning out to be a bit more sordid than we thought.

ARENA: If "The New York Times" is right, that would parallel what we know about the investigation into the prostitution ring that was announced last week. As I said, a judge did approve wiretaps. So, they do have copies of text messages.

LEMON: Right.

ARENA: They have copies of e-mail accounts and so on, so, lots of information, you know, with this criminal complaint that I'm looking at, you know, pretty thick.

LEMON: Right.

ARENA: So, it would -- it would parallel.

(CROSSTALK)

LEMON: Let's take a look at this right now.

(BEGIN VIDEO CLIP)

SPITZER: Over the past nine years, eight years as attorney general, and one as governor, I have tried to uphold a vision of progressive politics that would rebuild New York and create opportunity for all. We sought to bring real change to New York, and that will continue.

Today, I want to briefly address a private matter. I have acted in a way that violates my obligations to my family and that violates my, or any, sense of right and wrong. I apologize first, and most importantly, to my family. I apologize to the public, whom I promised better.

I do not believe that politics in the long run is about individuals. It is about ideas, the public good, and doing what is best for the state of New York. But I have disappointed and failed to live up to the standard I expected of myself. I must now dedicate some time to regain the trust of my family.

I will not be taking questions. Thank you very much. I will report back to you in short order. Thank you very much.

(END VIDEO CLIP)

LEMON: All right. That is the Governor of New York, Eliot Spitzer, just moments ago speaking at City Hall -- he has an office there -- not speaking from Albany today.

His wife, Silda Wall Spitzer, standing by his side.

We were in the middle of this conversation, Kelli Arena, where we were talking about wiretapping. And just again, I want to report that "The New York Times" is reporting this, saying that they have -- that the governor had been caught on a federal wiretap arranging to meet with a high-priced prostitute at a Washington hotel last month. That's according to a person briefed on the federal investigation.

And, Kelli, I know you're standing by, but just hear me out here. The wiretap recording made during an investigation of a prostitution ring, and we know that prostitution captured a man, again, according to "The New York Times," identified as "client nine' on a telephone call confirming plans to have a woman travel from New York to Washington, where he had reserved a room. The person briefed on the case identified Mr. Spitzer, Kelli, as client nine.

ARENA: Well, you know, if they are right, as I said, I mean, it certainly jibes with what we know from the criminal complaint, that there were wiretaps, federal wiretaps, that were approved.

We know that there were e-mail accounts that were set up for people to pay and to make it look like it was a legitimate business transaction. And we do know, according to the criminal complaint, that one of the cities that -- that was targeted in this investigation is Washington, D.C., as well as New York.

So, you know, you can sort of make your own inference here. I mean, we don't unfortunately have anybody going that extra step and saying absolutely there is a connection. But the folks that I have spoken to have really been very hesitant to say anything at all on this, because, one, even of the original complaint, this is an ongoing investigation, two, and it does involve someone who is not facing any charges that we know of.

This is a man who looks like was trying to issue a preemptive strike here. It could be that he was advised not to go as far as he originally told his staff that he would go because there is this ongoing investigation. We just don't know at that point. But we do know that the coincidence is certainly a strong one, Don.

LEMON: All right, yes. Thank you very much for that, Kelli Arena, our Justice Department correspondent, joining us from Washington.

NGUYEN: And we have been trying to get at, Don, exactly why was this preemptive strike taking place as it is now.

And here's what we're learning from that "New York Times" article. It went on to say that the governor learned that he had been implicated in that prostitution probe when a federal official contacted his staff last Friday. And then the governor informed his top aides on Sunday night and this morning of his involvement.

And, today, obviously, we have the news conference that we want to play to you right now, so, you can see it for yourself.

Take a listen.

(BEGIN VIDEO CLIP)

SPITZER: Good afternoon. Over the past nine years, eight years as attorney general, and one as governor, I have tried to uphold a vision of progressive politics that would rebuild New York and create opportunity for all. We sought to bring real change to New York, and that will continue.

Today, I want to briefly address a private matter. I have acted in a way that violates my obligations to my family and that violates my, or any, sense of right and wrong. I apologize first and most importantly to my family. I apologize to the public, whom I promised better.

I do not believe that politics in the long run is about individuals. It is about ideas, the public good, and doing what is best for the state of New York.

But I have disappointed and failed to live up to the standard I expected of myself. I must now dedicate some time to regain the trust of my family.

I will not be taking questions. Thank you very much. I will report back to you in short order. Thank you very much.

(END VIDEO CLIP)

NGUYEN: So, without addressing the prostitution ring specifically and his possible link to it, the governor says that he has acted in a way that violated his obligation to his family. He also apologized to the public.

But he went on to say, politics are about -- are not about individuals. It's about the public good. So, it sounds like he is going to continue to try to survive this politically.

And, of course, we're going to continue to follow this for you and bring you any developments as they come in to the CNN NEWSROOM.

We will be right back.

(COMMERCIAL BREAK)

LEMON: All right, our developing news here in the CNN NEWSROOM, the governor of New York, Eliot Spitzer, according to "The New York Times" involved in a prostitution ring. The governor speaking out moments ago to those accusations.

Only apologizing for what he's saying not living up to the obligations to himself and to his family as well as to the people of New York City. The governor speaking out at his office in front of just a phalanx of reporters just moments ago.

(BEGIN VIDEO CLIP)

SPITZER: Good afternoon. Over the past nine years, eight years as attorney general and one as governor, I've tried to uphold a vision of progressive politics that would rebuild New York and create opportunity for all. We sought to bring real change to New York, and that will continue.

Today, I want to briefly address a private matter. I have acted in a way that violates my obligation to my family, that violates my or any sense of right and wrong. I apologize first and most importantly to my family. I apologize to the public, whom I promised better.

I do not believe that politics in the long run is about individuals. It is about ideas, the public good, and doing what is best for the state of New York. But I have disappointed and failed to live up to this standard I expected of myself.

I must now dedicate some time to regain the trust of my family. I will not be taking questions. Thank you very much. I will report back to you in short order. Thank you very much.

(END VIDEO CLIP)

LEMON: All right, that happening in New York City. Not very long ago, from Governor Eliot Spitzer's office and his wife, standing right next to him. The last time we saw anything like that was Governor Jim McGreevy of New Jersey when his wife stood by him when he came out, when he came out.

So, it's very interesting to see what's going to happen from this, because Eliot Spitzer did not, did not, at all say he was going to resign, but only that he needed some time and that he would get back to the public.

We have heard some of the sordid details according to "The New York Times" about exactly how this transpired, possibly through wiretaps.

Joining us on the phone now, Fred Dicker from "The New York Post," and, Fred, I'm sure you've read some of the details about client nine meeting at a hotel in Washington, they even have the room number.

FRED DICKER, "NEW YORK POST": Right. LEMON: How much he paid for it and what have you. Please elaborate on that.

DICKER: Well, obviously, federal authorities are leaking some extremely damaging information in the governor's people have put that out now. We've been on the phone with the governor's people. They are basically confirming all that you describe and now with the governor's making the statement that he himself made, certainly that confirmation was implicit in his remarks.

LEMON: That confirmation was implicit in his remarks, that he's admitting some wrongdoing.

DICKER: Of course.

LEMON: Yes. After he said it, I said we don't want to put words in his mouth, but he didn't deny it. And the first words that he was I've acted in a way that violates my obligation to my family.

DICKER: He also, by the way, acted in a way that violates his obligation as a lawyer, he is sworn to uphold the law. And the last time I knew in New York, soliciting, paying for a prostitute is a crime.

LEMON: So, Fred Dicker, from "The New York Post," we've been talking about Eliot Spitzer. Everyone has called him the sort of crime crusader that was supposed to save New York State from corruption, from malfeasance and wrongdoing.

And all of a sudden this comes out. We hear from time to time that things leak out about their personal lives and what have you, but most of the people we're speaking to were saying nothing like this when it comes to Eliot Spitzer.

DICKER: He has had a couple of what could be called brushes with the law. Recently he was involved and was involved in what became known as the Troopergate scandal in Albany where he was alleged that his top aides used state police in an effort to try to destroy his leading Republican opponent. He's also been accused and he's basically admitted this of improperly and perhaps illegally using moneys from his father when he sought to run for attorney general.

He got monies in excess of the New York State campaign contribution limits. That said, he's also though been a guy widely identified nationally and international, the sheriff of Wall Street, Eliot Ness of modern times. A guy of great public integrity, who had the money certainly, because he's a very wealthy man, to avoid being involved in political corruption.

LEMON: When you heard about this, really quickly, what was your reaction?

DICKER: Along with everyone else in state government and around state government, I'm at the State Capitol right now, totally stunned. It was something that nobody could have imagined. LEMON: What do you think happens next? Obviously if he is, indeed, involved or admits some sort of wrongdoing in this, the lieutenant governor takes over, which is a very interesting, interesting story. David Paterson.

DICKER: Well, Paterson would only take over if the governor resigns.

LEMON: Right.

DICKER: Or asks him to act as governor by stepping aside. That happens, then Paterson is going to have to step up on the plate. He's never been thought of somebody who is going to be a strong leader.

He's been hoping to succeed frankly Hillary Clinton as our next U.S. senator should she become president. But it's a challenge the likes of what David Paterson has never had before.

LEMON: I know you don't have a crystal ball, but you work for "The New York Post" and have been doing a lot of reporting and seen these situations over the years not only with people with New York but also new jersey and the tri-state area in which you cover. What do you see happening next?

DICKER: Well, very few people here believe that the governor can survive if, in fact, he's involved in a -- any kind of a prostitution ring, so the expectation is that he'll do the kind of a political temperature testing, decide what best direction to go with, speak to his family and probably resign, but we don't know that for sure.

LEMON: All right, thank you very much.

DICKER: Take care, then.

LEMON: All right, thank you, sir.

NGUYEN: Let's take you now to CNN's Jason Carroll who is standing outside Governor Spitzer's office in Manhattan.

Jason, I want to read this to you. We are just getting this across the wires. The Governor's Association is calling on Spitzer to resign. "The governor of New York should immediately resign from office and allow the people of New York to pursue honest leadership. The American people are tired of corrupt and hypocritical politicians. The governor of New York is just another in a long list of politicians that have failed their constituents."

Obviously the governor and his aides are expecting, at least have to have been, in light of the news that come out today, you know what, maybe he should step down. Have they had any reaction to the possibility?

JASON CARROLL, CNN CORRESPONDENT: Well, first of all, i can tell you without question, I'm sure you're going to hear that call for resignation and many, many more. Quite frankly it was surprising to those of us in the newsroom as the governor was giving his press conference that he did not submit his resignation effective immediately, especially after admitting to being involved in this prostitution ring.

You know, this is -- this is the man who built a career as I'm sure you've heard people say over and over, again, about bringing ethics back to politics. You know, getting rid of those who were involved in wrongdoing. And now he's admitted to being involved in this.

He ended his statement not taking any questions from any of the reporters in the room saying, I will be back in short order. It makes you wonder, back in short order to say what? Why didn't he need to say what he needed to say when he was there? A lot of people were expecting him, once again, expected him to resign.

Something interesting Betty, I was sitting there and some of the people were saying apologize, apologize, some people were saying for him to apologize and he apologized to his family first. And saying that he need to regain the trust of his family. And he failed himself, living up to some of the standards that he had set for himself. Also saying that he had acted in a way that violates the obligation to his family and to his own sense of right and wrong.

And you also, Betty, have to think what it was like for Silda, his wife of 21 years, to stand there next to this man, as he admitted to being involved in this prostitution ring. The two of them, again, married for 21 years. Met back at Harvard Law School. You heard from this one calling for Governor Spitzer's resignation. I'm sure you're going to hear many more -- Betty.

NGUYEN: No doubt that must be difficult in light of all the news that's come out today. Let me ask you something just very quickly, though. According to "The New York Times," and they lay out all the information they have regarding the link to the prosecution ring, but it also involves Eliot Spitzer being caught on a federal wiretap and that the governor learned of this on Friday but then notified his staff on Sunday and this morning. Are you getting more, an indication of exactly how this played out, what that timeline is?

CARROLL: Well, obviously, we're trying to get more of that information, Betty. Again, the governor did not take any questions. Neither did anyone who was there representing the governor office. He came in and read a brief statement and said he needed time to sort things out. He answered no questions. So we're actually having to go with what "The Times" is reporting. And we're going to be working the next several hours to get the information verified -- Betty.

NGUYEN: Understandable, and we're going off of what "The Times" is reporting as well and that report indicating that Governor Eliot Spitzer has been caught on a federal wiretap arranging to meet with a high-priced prostitute at a Washington hotel last month and we will continue to follow this story -- Don.

LEMON: Betty and Jason, not so fast. Because we've obtained documents, documents from this case. And our Allan Chernoff in our New York bureau has them and we'll look at them and go through the documents right after the break.

(COMMERCIAL BREAK)

LEMON: The governor of New York State, Eliot spider, involved in a prostitution ring. That's according to "The New York Times." The governor speaking out just moments ago. Not admitting but saying he apologizes for not living up to his personal obligations and his obligations to himself and to the public. We heard a reporter from "The New York Post" saying obligation as a person who is supposed to carry out the law, to follow the law.

Just a short time ago the governor spoke out at his office in Manhattan, with his wife Silda of more than 20 years, by his side. This is the latest in what we've seen in women having to stand by their husbands after they have admitted or at least being implicated in something of wrongdoing.

The last time we saw something of this magnitude of course was Governor Jim McGreevey. And remember Larry Craig and his wife, Senator Larry Craig and his wife stood by his side, also Louisiana Senator David Vitter, his wife standing by his side when he was implicated in a prostitution ring.

We have been pinning a lot of this on "The New York Times" and now we've got documents when it comes to this case. Our Allan Chernoff combing through those documents in New York.

What are you finding?

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: That's right, Don. What we have here is a 46-page affidavit, this is the case that the U.S. attorney for the Southern District here in New York brought.

Again, four individuals involved with a prostitution ring. Only last week. And "The Times" had reported that Mr. Spitzer was mentioned as one of the clients of this prostitution ring, according to "The Times." He had actually been wiretapped.

Now, we can read to you information in this affidavit, reportedly Mr. Spitzer is Client number nine. So, let me read a little bit over here.

There's a reference to a Tamika Rochelle Lewis (ph) who is one of the persons who have been charged as being part of this prosecution ring and her name is also -- her name is, also known as Rochelle, "she received," I'm quoting here, "an incoming call from client number nine. During the call Rochelle told client number nine that his package arrived today. Client nine said good. Lewis asked client nine what time he was expecting to have the appointment? Client nine told Lewis, maybe 10:00 p.m. or so and asked who it was. Lewis said it was Kristen. And client nine said, great. OK. Wonderful."

"Then Lewis told client nine that she would give him a final price later and asked client nine whether he would give Kristen extra funds. Apparently referring to a tip." Later in this -- in this affidavit, client nine then says that he would pay about $3,600, and then Rochelle said she suggested making it $1,500 more. Client nine said that he would look for a bank and see about this. Later in this affidavit, he then, they make arrangements to meet at Room 871, and this is in the Mayflower Hotel in Washington, we understand.

"Client nine," and I'm quoting again, "client nine asked Lewis, that is Rochelle, to remind him what Kristen looked like. And Lewis said that she was an American, petite, very pretty, brunette, 5'5" and 105 pounds. Client nine said that he should go straight to Room 871 and if for any reason it did not work out, she should call Lewis, Rochelle, the person who was involved with this prostitution ring."

So, apparently, you know, a clear reference to the governor, apparently we believe he is the client number nine in this case. And this apparently is what prompted Governor Spitzer to make his announcement just a few moments ago.

LEMON: So client nine, whoever client nine is, on this, obviously, they have the information and it has been some sort of recording or at least know that this client nine is involved with some sort of prostitution ring. And according to this, this is the affidavit that you have, right, Allan?

CHERNOFF: That is exactly correct.

LEMON: According to the affidavit, client nine, New York Governor Eliot Spitzer.

CHERNOFF: That's right. We believe that client nine is indeed New York Governor Eliot Spitzer. And this, the information, that apparently is tying him to a prostitution ring.

LEMON: It would be tough, Allan, to think that if there's an implication here and if there's any wrongdoing whatsoever, that the governor would be hard-pressed to survive this.

CHERNOFF: One of my first thoughts, absolutely. Tough enough for any politician to actually survive this. But Eliot Spitzer really built his career on being Mr. Clean. And this is just so -- so in the face, it's just so, so contrary to what he has stood for, and he is, frankly, a very self-righteous person.

I mean, any press conference you attend, you really sense that sense, that feeling that a wrong has been done and I'm here to correct it. So, for the governor to survive this would -- would be exceptional. There's no doubt about that.

LEMON: Our correspondent Allan Chernoff has gotten his hands on the affidavit involved in this case, involved with Governor Eliot Spitzer and possible links to a prostitution ring. Allan is going to continue to go through those documents and pull out any information that we find interesting and we'll bring it to you here right here in the CNN NEWSROOM.

We're back in a moment.

(COMMERCIAL BREAK) LEMON: All right, breaking news in to the CNN NEWSROOM. We have been reporting much of the day a story that "The New York Times" first broke here earlier. Implicating the governor of New York, Eliot Spitzer, with a prostitution ring.

Here's what CNN has learned and can confirm as of now. One senior source with knowledge of the investigation tells CNN that Eliot Spitzer is under investigation, is under investigation, for allegedly meeting with a prostitute in a Washington hotel. The source says there is no indictment under seal in Washington right now.

But, again, not sure, but they believe that client nine in this affidavit that Allan Chernoff has been reading to us, they believe that that client was New York Governor Eliot Spitzer. He is under investigation now according to CNN for allegedly meeting with a prostitute in a Washington hotel -- Betty.

NGUYEN: And in light of this news, the Republican Governors' Association is calling on Eliot Spitzer to resign. There's no reaction to that just yet. Aside from the news conference that we heard a little bit earlier, where the governor said politics, it's not about individuals, it's about the public good.

Let's take you now to CNN's Allan Chernoff who has been watching this. And it's no doubt, Allan, that we're starting to hear calls from resignation.

CHERNOFF: Not surprising and we will certainly hear many more. We were saying before that obviously for any high-level politician to be alleged to be involved and then to apparently admit to being involved with prostitutes or with at least one prostitute, would be a major ethical violation.

But in the case of New York Governor Eliot Spitzer, the background is essential here. Because New York Governor Eliot Spitzer, the background is important because Eliot Spitzer was elected in a landslide to become governor back in 2006 based upon his image as Mr. Clean.

He had been the New York attorney general. He had been an extremely aggressive attorney general, scored many victories in trying to clean up the state in many arenas, Will Street, organized crime, insurance companies, the list goes on and on, health care, and here he is, admitting to a major ethical lapse.

Now, we do have over here an affidavit that does give details of this case that was brought just last week by the U.S. attorney of the Southern District of New York here in Manhattan. And this apparently involving several clients, but client number nine we believe is a reference to Governor Spitzer.

He was staying at a hotel in Washington, D.C., and it does talk here about client number nine, making arrangements for a prostitute to come down from New York to Washington and to spend at least part of the evening with that prostitute. Earlier we did read to you, and let me read again, a portion here. This is client number nine speaking with one of the persons indicted who was involved with the prostitution ring, a Tamika Rochelle Lewis.

And, "Client nine told Lewis maybe 10:00 p.m. or so and asked who it was." This, of course, a reference to the meeting at the hotel, and we believe it is the Mayfair Hotel in Washington. "Lewis said," and I'm quoting again, "it was Kristen. And client nine said, that she asked exactly what she looked like. And was then told that she was an American, petite, very pretty, brunette, 5'5", 105 pounds, and client nine said, she should go straight to room 871."

And he also said that he was very pleased about that. A little bit more talks about the prostitute herself calling back to the ring and reporting that the evening had been concluded.

NGUYEN: We are going to get so many more details as this news continues to break. Allan Chernoff joining us live. We do appreciate that, Allan.

And we also want to bring you, the viewer, words from the governor himself as he held a press conference today. That will be on the other side of this break.

(COMMERCIAL BREAK)

LEMON: All right, breaking news in to the CNN NEWSROOM. We want to get the latest information coming across the wires now and also according to CNN.

This is the official, this is what's officially happening. Federal authorities are investigating allegations that New York Governor Eliot Spitzer met with a prostitute in a Washington hotel, that's according to a senior source with knowledge of the investigation. Apparently the governor found out about it a couple days ago and informed his staff over the weekend, and this morning he canceled all of his public appearances because he was meeting with his staff to tell them about this implication.

And here's what he said just moments ago -- he didn't admit it, but he apologized for wrongdoing.

(BEGIN VIDEO CLIP)

SPITZER: Good afternoon. Over the past nine years, eight years as attorney general, and one as governor, I've tried to uphold a vision of progressive politics that would rebuild New York and create opportunity for all. We sought to bring real change to New York, and that will continue.

Today, I want to briefly address a private matter. I have acted in a way that violates my obligations to my family and that violates my or any sense of right and wrong. I apologize first and most importantly to my family. I apologize to the public whom I promised better. I do not believe that politics in the long run is about individuals. It is about ideas, the public good, and doing what is best for the State of New York.

But I have disappointed and failed to live up to the standard I expected of myself. I must now dedicate some time to regain the trust of my family. I will not be taking questions. Thank you very much.

(END VIDEO CLIP)

LEMON: Eliot Spitzer not that long ago at his office in New York City with his wife, Silda, by his side. He also has three children and the interesting thing in all of this, Betty, which is if there is indeed some wrongdoing, which he admits to wrongdoing, not necessarily admitting to being part of a prostitution ...

NGUYEN: Linked to a prostitution ...

LEMON: Yes. But then the lieutenant governor will take over. And there is no special election. If he resigned, the lieutenant governor takes over and serves out the rest of his term.

NGUYEN: And there are calls for his resignation this hour, according to the Republican Governors' Association and we here at CNN are going to continue to follow this story.

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