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 Official Says NY Gov. Spitzer to Resign
 

New York State Gov. Eliot Spitzer makes a statement to reporters during a news conference Monday, March 10, 2008 in New York where he apologized to his family and the public after a report that he was involved in a prostitution ring. (AP Photo/Mary Altaffer)

By MICHAEL GORMLEY
The Associated Press
Wednesday, March 12, 2008; 10:49 AM

ALBANY, N.Y. -- Gov. Eliot Spitzer has decided to resign, completing a stunning fall from power after he was nationally disgraced by links to a high-priced prostitution ring, a top state official said Wednesday.

Spitzer was scheduled to announce his resignation at 11:30 a.m., according to a second top Spitzer staffer. The officials spoke to The Associated Press on condition of anonymity because the announcement had not yet been made.

Spitzer would be replaced by Lt. Gov. David Paterson, who will become New York's first black governor.

The scandal erupted Monday when allegations surfaced that Spitzer, a 48-year-old married man with three teenage daughters, spent thousands of dollars on a call girl named Kristen at a swanky Washington hotel on the night before Valentine's Day.

"I have acted in a way that violates my obligations to my family and violates my _ or any _ sense of right and wrong," the governor said at a news conference with his wife, Silda, at his side. "I apologize to the public, whom I promised better."

Calls for his resignation came immediately. Republicans began talking impeachment if he didn't step aside. Meanwhile, Spitzer stayed holed up in his Manhattan apartment, where he was reportedly weighing his options, including waiting to use resignation as a bargaining chip with federal prosecutors to avoid indictment.

The case involving Spitzer started when banks noticed frequent cash transfers from several accounts and filed suspicious activity reports with the Internal Revenue Service, a law enforcement official told The Associated Press. The accounts were traced back to Spitzer, leading public corruption investigators to open an inquiry.

A law enforcement official said Tuesday that Spitzer had spent tens of thousands of dollars with the call-girl service Emperors Club VIP. Another official said the amount could be as high as $80,000.

Still another law enforcement official said investigators found that during the tryst with Kristen, Spitzer used two rooms at Washington's Mayflower Hotel _ one for himself, the other for the prostitute. Sometime around 10 p.m., Spitzer sneaked away from his security detail and made his way to her room, the official said.

According to an affidavit, a federal judge approved wiretaps on the escort service's telephone in January and February. FBI agents in Washington had the Mayflower under surveillance when Spitzer was in town, a senior law enforcement official said.

The officials spoke to the AP on condition of anonymity because of the sensitivity of the case.

Spitzer, a first-term Democrat, built his political reputation on rooting out government corruption, and made a name for himself as attorney general as crusader against shady practices and overly generous compensation. He also cracked down on prostitution.

He was known as the "Sheriff of Wall Street." Time magazine named him "Crusader of the Year," and the tabloids proclaimed him "Eliot Ness." The square-jawed graduate of Princeton University and Harvard Law was sometimes mentioned as a potential candidate for president.

He rode into the governor's office with a historic margin of victory on Jan. 1, 2007, vowing to stamp out corruption in New York government in the same way that he took on Wall Street executives with a vengeance while state attorney general.

His term as governor has been fraught with problems, including an unpopular plan to grant driver's licenses to illegal immigrants and a plot by his aides to smear his main Republican nemesis. The prostitution scandal, some said, was too much to overcome.

Freshman Rep. Kirsten Gillibrand became the first Democratic member of New York's congressional delegation to mention resignation on Tuesday. "This is very grave and sad news," she said. "If these serious allegations are true, the governor will have no choice but to resign."

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 Fallon Resigns As Mideast Military Chief
 

WASHINGTON (AP) — Adm. William Fallon, the top U.S. military commander for the Middle East, is resigning, Defense Secretary Robert Gates said Tuesday.

Gates said Fallon had asked him Tuesday morning for permission to retire and Gates agreed. Gates said the decision was entirely Fallon's and that Gates believed it was "the right thing to do."

Fallon was the subject of an article published last week in Esquire magazine that portrayed him as opposed to President Bush's Iran policy. It described Fallon as a lone voice against taking military action to stop the Iranian nuclear program.

Gates described as "ridiculous" any notion that Fallon's departure signals the United States is planning to go to war with Iran. And he said "there is a misperception" that Fallon disagrees with the administration's approach to Iran.

"I don't think there were differences at all," Gates added.

Fallon has had a 41-year Navy career. He took the Central Command post on March 16, 2007, succeeding Army Gen. John Abizaid, who retired. Fallon previously served as commander of U.S. Pacific Command.

Gates said that until a permanent replacement is nominated and confirmed by the Senate, Fallon's place will be taken by his top deputy, Army Lt. Gen. Martin Dempsey.

The secretary called Fallon a very able military strategist and said his advice will be missed at the Pentagon.

"I think this is a cumulative kind of thing," said Gates, speaking of the circumstances leading up to Fallon's decision. "It isn't the result of any one article or any one issue."

"As I say, the notion that this decision portends anything in terms of change in Iran policy is, to quote myself, 'ridiculous,' " he said.

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 CentCom Commander Fallon: Attack On Iran ‘Will Not Happen On My Watch’
 

fallonEarlier this year, the Bush administration deployed a second Navy group carrier into the Persian Gulf. Vice President Cheney referred to the move as an attempt to send a “strong signal” about the administration’s commitment to confronting Iran.

In February, Newsweek reported that the Bush administration was planning to ratchet up the pressure even further by deploying a third carrier group into the Gulf. Hillary Mann, the administration’s former National Security Council director for Iran and Persian Gulf Affairs, warned that some Bush advisers secretly wanted an excuse to attack Iran. “They intend to be as provocative as possible and make the Iranians do something [America] would be forced to retaliate for,” she told Newsweek.

IPS reported yesterday that the administration’s attempt to send the third carrier group was vetoed by the new head of the U.S. Central Command Admiral William Fallon:

Admiral William Fallon, then President George W. Bush’s nominee to head the Central Command (CENTCOM), expressed strong opposition in February to an administration plan to increase the number of carrier strike groups in the Persian Gulf from two to three and vowed privately there would be no war against Iran as long as he was chief of CENTCOM.

Fallon’s resistance to the proposed deployment of a third aircraft carrier was followed by a shift in the Bush administration’s Iran policy in February and March away from increased military threats and toward diplomatic engagement with Iran. That shift, for which no credible explanation has been offered by administration officials, suggests that Fallon’s resistance to a crucial deployment was a major factor in the intra-administration struggle over policy toward Iran.

One source said Fallon sent a memo that “insisted there was no military requirement for” for an additional carrier. Fallon private conveyed around the time of his confirmation hearing that an attack on Iran “will not happen on my watch.” IPS notes, “Fallon’s refusal to support a further naval buildup in the Gulf reflected his firm opposition to an attack on Iran and an apparent readiness to put his career on the line to prevent it.”

While Fallon’s message may have affected the deployment of another Navy carrier, it didn’t stop Vice President Cheney from finding other ways to issue symbolic acts of provocation against Iran. Last week, Cheney stood aboard one of the two carriers currently in the Gulf and warned Iran that the U.S. was prepared to use its naval power to keep Tehran from disrupting off oil routes or “gaining nuclear weapons and dominating this region.”

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