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During the course of an investigation into Emperors Club VIP, the federal government became aware of Spitzer's involvement with prostitutes due to a wiretap. Following the public disclosure of his actions, Spitzer resigned as Governor effective March 17, The investigation of Spitzer was initiated after North Fork Bank  reported suspicious transactions to the Treasury Department's Financial Crimes Enforcement Network as required by the Bank Secrecy Act , which was enhanced by Patriot Act provisions, enacted to combat terrorist activity such as money laundering.
Federal agents had him under surveillance twice in Room at the Mayflower Hotel was booked under the name George Fox, a pseudonym that was allegedly the name of his close friend, a hedge fund investor. When he tried to get his name taken off the wires, the bank refused, saying that the money had already been wired out and that it would be improper to do so in any case.
The IRS Criminal Investigation Division then began a probe, initially fearing that Spitzer was the victim of either extortion or identity theft. The investigation led federal authorities to link the money transfers to the Emperors Club. Stone provided detail saying that Spitzer wore calf-length black socks while having sex. On March 7, , The New York Times reported that the federal government had arrested four people in connection with an international online prostitution ring run by Emperors Club VIP.
On March 10, the Times reported that Spitzer had been "caught on a federal wiretap arranging to meet with a high-priced prostitute at a Washington hotel". I have acted in a way that violates my obligation to my family and violates my or any sense of right and wrong. I apologize first and most importantly to my family.
I apologize to the public to whom I promised better. 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. Tedisco later announced that he would initiate impeachment proceedings in the State Assembly if Spitzer did not resign. Attorney for the Southern District of New York declined to comment,     except to say that "There is no agreement between this office and Gov.