Also from CNN :

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.
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UPDATE AT BOTTOM: Eliot Spitzer threatens to sue Bush to get healthcare for kids.

The Democratic Governor of New Hampshire, John Lynch, is trying to lead a bipartisan effort to ensure quality healthcare for American children. His message focuses on New Hampshire but his efforts are aimed nationally and his call to action is for all of us to write Congress and the White House to lobby for affordable, quality healthcare for all American children. Here is Governor Lynch's message:

Here in New Hampshire, we are working to make sure every child has access to quality, affordable health care. Just this year, we passed a budget that will allow us to provide affordable health insurance to another 10,000 children and expand our outreach efforts.

That is why I am so disturbed about rule changes that the Bush Administration proposed last week.

If we are serious about giving every child the opportunity for a good education and a good life, and if we are serious about strengthening New Hampshire's future, then we need to be make sure every child in New Hampshire has access to quality, affordable health care. Now is not the time for the federal government to make it harder for states like New Hampshire to provide coverage - we should be expanding access to health insurance.

These proposed changes could negatively impact 2,000 kids currently enrolled in Healthy Kids. It also could jeopardize part of our efforts to enroll 10,000 additional children in the Healthy Kids program over the next three years.
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