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Call girl inquiry began with questions from IRS

NEW YORK - The federal investigation into a high-end prostitution ring linked to Gov. Eliot Spitzer apparently began last year as a financial inquiry by the IRS.

The investigation into the Emperors Club VIP gathered more than 5,000 telephone calls and text messages, and more than 6,000 e-mails, along with bank records, travel and hotel records and surveillance.

It was unclear whether Spitzer was a target from the start or whether agents came across his name by accident while amassing evidence.

The prostitution ring came to light last week when four people were charged with running it. It was not immediately clear whether Spitzer could face charges. Federal prosecutors have brought charges against several prostitution rings over the past two decades, but have generally not prosecuted customers.

The public corruption unit of the U.S. Attorney's Office got involved after the IRS looked into a complaint of a potential violation of the Bank Secrecy Act, the government's main tool against money laundering.

Investigators say the Emperors Club, which is based in Brooklyn, made more than $1-million for its operators by selling the services of women whose bodies were displayed, their faces concealed, on a Web site. The prostitutes were advertised as costing from $1,000 to $5,500 an hour.

Thursday, four people were arrested in the inquiry and charged with conspiracy to violate federal prostitution laws: Mark Brener, 62, and Cecil Suwal, 23, who live together in Cliffside Park, N.J.; Temeka Rachelle Lewis, 32, of Brooklyn; and Tanya Hollander, 36, of Rhinebeck, N.Y.

Brener and Suwal also were charged with conspiracy to launder more than $1-million in illicit proceeds. Lewis and Hollander were accused of arranging meetings between prostitutes and clients. Assistant U.S. Attorney Dan Stein said he believed the arrests shut down the ring.

The business promised clients they could pay with a wire transfer that would show up on records as QAT Consulting to make it appear to be a business transaction. Client 9, who a law enforcement source said on condition of anonymity is Spitzer, insisted on paying in cash.

[Last modified March 11, 2008, 00:01:16]