CNN - 'Deeply sorry,' Spitzer to step down by Monday

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'Deeply sorry,' Spitzer to step down by Monday

Gov. Eliot Spitzer said Wednesday that he will step down from the state's top office because he cannot allow his "private failings to disrupt the public's work."

"I am deeply sorry that I did not live up to what was expected of me," he said in a brief news conference announcing his intention to resign, effective Monday. "I will try once again outside of politics to serve the common good."

With his wife, Silda, at his side, he added, "Our greatest glory consists not in never falling but in rising every time we fall."

The announcement came as the New York governor faces allegations -- but no charges -- that he is tied to an international prostitution ring ensnared in a federal probe.

Spitzer's lawyers were in discussions Wednesday with the U.S. attorney's office in New York, trying to negotiate a plea deal to avoid prosecution, a source with knowledge of the discussions said.

However, U.S. Attorney Michael Garcia in New York issued a statement saying, "There is no agreement between this office and Gov. Eliot Spitzer relating to his resignation or any other matter."

Spitzer, a former state attorney general whose reputation as a scourge of white-collar crime propelled him to the governor's office in 2006, has faced calls for his resignation since apologizing for a personal indiscretion Monday. He has not elaborated. See a timeline of Spitzer's life

In his Wednesday announcement, Spitzer said, "Over the course of my public life, I have insisted -- I believe correctly -- that people, regardless of their position or power, take responsibility for their conduct. I can and will ask no less of myself." Watch Spitzer say his "failings" led him to resign

On Monday, prosecutors unsealed an affidavit detailing a rendezvous in a Washington hotel room last month as part of a federal prostitution investigation. The affidavit refers only to "Client 9," but a source told CNN on Monday that the reference was to Spitzer. View a gallery of recent political sex scandals

Sources said Spitzer spent more than $15,000 for several encounters with prostitutes. It was revealed Wednesday by sources familiar with the investigation that Spitzer allegedly began patronizing the prostitution outfit, known as the Emperors Club, eight months ago and had used its services on at least eight occasions.

Both Republicans and Democrats have called for him to leave office.

"Eliot knows he cannot hold onto his job here. He might want to, but he is absolutely aware of his predicament," a Democratic source said Tuesday.

Paterson, 53, will become the first black governor in the state and the fourth in U.S. history. The former state Senate minority leader, who is legally blind, is the son of Basil Paterson, a longtime Democratic operative in New York City.

In a statement following Spitzer's announcement, Paterson called the governor a friend and said he was saddened by the news surfacing this week. Watch how details of the scandal are emerging on the Web

"My heart goes out to him and to his family at this difficult and painful time," Paterson said. "It is now time for Albany to get back to work as the people of this state expect from us."

Though he hasn't been charged with a crime, Spitzer has begun assembling a legal team. He has chosen Michele Hirshman as his lead attorney, said Madelaine Miller, a spokeswoman for Hirshman's law firm, Paul, Weiss, Rifkind, Wharton & Garrison. Watch Spitzer's apology

Hirshman, who was the first deputy attorney general under Spitzer when he was attorney general, also is a former assistant U.S. attorney who "served as chief of the Public Corruption Unit, where she led major investigations and prosecutions of government fraud and political and police corruption," according to the law firm's Web site.

Spitzer, 48, took office in January 2007 after eight years as the state's attorney general, rising to national prominence. He built his career on rooting out public corruption and became a national figure with a series of high-profile Wall Street investigations. He also prosecuted prostitution rings. Watch how Wall Street views Spitzer scandal

Spitzer is married with three daughters.

Sources said a federal money-laundering investigation led agents to Spitzer. According to two sources, Spitzer hit the federal radar when a bank reported to the Internal Revenue Service that a significant amount of money had been suspiciously transferred from one account to another.

After receiving the IRS report last year, the FBI corruption squad linked the account transfers to a prostitution ring, according to various sources.

The FBI criminal division joined the inquiry to look into the prostitution ring, while the federal corruption team continued its investigation into Spitzer. Investigators are focusing on how Spitzer paid for the sexual encounters, what he may have done to conceal the movement and source of the money, and whether he broke any laws doing it, sources said.

The 47-page affidavit details arrangements for a nearly 2½-hour rendezvous between Client 9 and a prostitute -- identified only as "Kristen" -- at a Washington hotel in February.

A source identified the hotel as the Mayflower. Sources said Spitzer rented two rooms, one under the name of a political donor, George Fox. There Spitzer is said to have met with the prostitute from New York. Watch breakdown of key dates in Spitzer scandal

The affidavit alleges that Client 9 paid for the prostitute to travel from New York to Washington. The Mann Act makes it a federal offense to take someone across state lines for the purpose of prostitution.

The Emperors Club, for which officials said the prostitute worked, charged between $1,000 and $5,500 an hour and operated in New York; Los Angeles, California; Miami, Florida; London, England; and Paris, France, according to court papers released by prosecutors last week.

Authorities learned more about the inner workings of the prostitution ring by using wiretaps and accessing text messages, according to the affidavit.