Eliot Spitzer's Georgia business targets


The Atlanta Journal-Constitution
Published on: 03/16/08

New York Gov. Eliot Spitzer made his presence felt all around the nation — including in Georgia — when he was the Empire State's attorney general. Here's a rundown of Georgia-connected people and businesses that have felt Spitzer's sting.

JAMES ESTRIN/New York Times
New York Gov. Eliot Spitzer, with wife Silda, has touched many entities with a Georgia connection in his career.
 
SPITZER SCANDAL

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Photos:
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Video:
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Documents:
Text of Spitzer's resignation statement
Excerpt from criminal complaint (PDF)

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Target: James Zimmerman, former chief executive of Federated Department Stores.

Georgia connection: Chairman of the company's Atlanta-based Rich's division in the 1980s. Also served as chairman of the downtown organization Central Atlanta Progress.

Target: Indicted in 2005 on a perjury charge after being questioned in an antitrust investigation into whether Federated attempted to prevent makers of fine tableware from doing business with rival Bed Bath & Beyond.

Outcome: Courts threw out the perjury charge on a technicality. Federated and other parties agreed to pay a $2.9 million settlement.

Target: Kenneth Langone, former director of the New York Stock Exchange and former chairman of its compensation committee.

Georgia connection: One of three founders of Atlanta-based Home Depot. Also an early backer of Alpharetta-based Choicepoint.

Target: Sued in 2004 by Spitzer's office over a $180 million-plus compensation package for NYSE Chairman and Chief Executive Richard Grasso.

Outcome: Spitzer won an early round in court, then lost on appeal. Not to be outdone, the New York attorney general's office has appealed the case.

Target: CompuCredit Corp.

Georgia connection: The credit card company is based in Atlanta.

Target: Spitzer's office investigated complaints that some credit card fees weren't properly disclosed and that improper tactics were used to collect debts and enroll cardholders in other programs.

Outcome: CompuCredit agreed to pay an $11 million settlement.

Target: Home Depot

Georgia connection: Company is based in Atlanta.

Target: Spitzer's office investigated complaints about how the company treated patrons whose Home Depot gift cards were lost or stolen.

Outcome: Home Depot agreed to change policy and give consumers replacement gift cards. It also agreed to reimburse the attorney general's office for the cost of its investigation.

Target: Amvescap, which is now known as Invesco.

Georgia connection: Invesco has headquarters in Atlanta's Midtown.

Target: Spitzer's team accused various mutual fund companies, including an Amvescap subsidiary, of engaging in fraud related to rapid in-and-out trading, contrary to the funds' stated policies.

Outcome: Amvescap agreed to pay $451 million to settle the cases and one former Colorado-based executive agreed to a $500,000 fine and temporary banishment from the industry.

Target: ING Groep, a financial services company.

Georgia connection: The company's affiliate, ING Life Insurance and Annuity Co., is based in Atlanta.

Target: Spitzer's office investigated complaints that retirement plan fees were not properly disclosed.

Outcome: ING agreed to pay $30 million in restitution to teachers who participated in the ING plan.

Target: U.S. Environmental Protection Agency

Georgia connection: Atlanta-based Southern Co., parent of Georgia Power, faced implications from the case.

Target: Spitzer led a multistate fight against an EPA rule that would have relaxed regulations of coal-fired power plants such as those belonging to Southern Co.

Outcome: In 2006, a federal appeals court threw out the EPA rule.

Sources: News reports, New York State Attorney General's office, government records


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