By Daniel Trotta and Robert Campbell
NEW YORK (Reuters) - New York Gov. Eliot Spitzer, theone-time "Sheriff" of Wall Street who campaigned on a promiseto clean up state politics, was embroiled in a sex scandal onMonday that threatened to force his resignation.
A New York Times report linked him to a $1,000 (498pound)-an-hour prostitute, saying he was caught on a federalwiretap at least six times on February 12 and 13 arranging tomeet with her at a Washington hotel last month.
The Times said he was the man described in court papers asClient 9 who patronized the Emperors Club, which federalinvestigators allege was a prostitution ring whose mostexpensive professionals charged more than $5,500 an hour.
Spitzer, a married 48-year-old Democrat who investigatedprostitution as New York's attorney general, apologized forwhat he described as "private matter" but said nothing aboutresigning. Some media reports said he would quit and some stateRepublicans called for him to step down.
CBS 2 television in New York, citing unidentified sources,said Spitzer could resign as early as Monday night.
"I have acted in a way that violated the obligations to myfamily and that violates my -- or any -- sense of right andwrong. I apologize first, and most importantly, to my family. Iapologize to the public whom I promised better," the father ofthree daughters told a packed room of reporters in New YorkCity with his wife, Silda Wall Spitzer, at his side.
"I am disappointed that I failed to live up to the standardthat I expect of myself. I must now dedicate some time toregain the trust of my family," Spitzer added.
The news rocked Wall Street, where power brokers resentedSpitzer's high-profile inquiries into financial cases when hewas New York state's chief prosecutor, and sent shockwavesthrough the Democratic Party.
"Get ready for a schadenfreude festival on Wall Street,"said Barry Ritholtz, director of equity research at Fusion IQ.
Spitzer has been described a rising star in the party andis pledged to support Democratic presidential candidate Sen.Hillary Clinton of New York as a superdelegate at theDemocratic Party convention in August.
As state attorney general before being elected governor inNovember 2006, Spitzer built his reputation going afterwhite-collar crime on Wall Street. As governor, he vowed toclean up state politics.
FORMER 'CRUSADER OF THE YEAR'
Time Magazine named him "Crusader of the Year" in 2002after his landmark settlement with 10 of the country's largestsecurities firms over charges of misleading investors.
The New York Times, citing an administration official,reported that Spitzer had told his top administration officialshe had been involved in a prostitution ring that had been underinvestigation by federal authorities.
The Emperors Club Web site once described it as a providerof "beautiful, sensual and discreet escorts."
Spitzer is the individual identified as Client 9 in courtpapers that were filed last week when four people were chargedwith running a multimillion-dollar international prostitutionring, the Times reported, citing unidentified sources.
Client 9 arranged to meet with "Kristen," a prostitute whocharged $1,000 an hour, on February 13 in room 871 of aWashington hotel and paid $4,300 for services rendered and as adownpayment for future engagements, according to those courtdocuments.
The papers describe six telephone calls between Client 9and one of the defendants that were intercepted by wiretapsbetween February 12 and 13.
Kristen was described by a defendant as an American,petite, very pretty brunette weighing 105 lbs (48 kg).
Julian Zelizer, politics and history professor at PrincetonUniversity, said the case was a blow to the Democratic Party.
"He was a rising star. Before he became governor he wasseen as a potential president. ... Whenever you lose a risingstar, it's a little demoralizing, " Zelizer said.
As a high-ranking elected Democrat, he is a superdelegateto the party's convention where its nominee for the November 4presidential election will be chosen. The superdelegates are inaddition to delegates elected during nominating contests aroundthe states.
New York law firm Paul, Weiss said it was representingSpitzer but had no comment. Spitzer had worked for the firm.
