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Also from CNN [2] :
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.
There is definitely a criminal investigation.
This is not the end. This is the beginning of the end of Eliot Spitzer.
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[2] http://www.cnn.com/2008/POLITICS/03/12/spitzer/index.html
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