New York Attorney General Eliot Spitzer will expand his investigation of the insurance industry in early January, a spokesman said, contrary to a front-page report by The New York Times Saturday that said Spitzer was ready to "cede" his investigations to the federal government.
Darren Dopp, a spokesman for Spitzer, declined to provide specific details about what companies or financial firms might be targeted in the next phase of the ongoing probe. Spitzer himself was traveling and unavailable for comment, Dopp said.
"It will be the first or second week of January when our next case is ready," Dopp said.
Spitzer's office issued a statement Saturday criticizing the New York Times article, prompting the newspaper to print a story Sunday that amounted to a correction.
"A story in the New York Times today indicating that Attorney General Spitzer will 'cede investigations to federal authorities' is wrong," the Dec. 25 statement from the attorney general's office said. "Mr. Spitzer never said this, and the notion that he would do so is absurd."
The New York Times from Christmas day "badly mischaracterizes" comments by Spitzer on the relationship between state and federal regulators, the statement said.
"Mr. Spitzer's comments should not be viewed as an indication that the attorney general's office will withdraw from any area where it is now involved or turn ongoing cases over to federal authorities," the statement said.
Spitzer — a Democrat who announced on Dec. 7 that he will run for governor of New York in 2006 — sued insurance broker Marsh & McLennan Cos. in October, saying the company rigged bids in the insurance market.
He continues to investigate Marsh and the insurance industry overall for a number of suspected infractions.
"Today's article in the Sunday Times was complete and covered the matter," said Toby Usnik, a spokesman for the New York Times. He declined to comment further.
In September of 2003, Spitzer unveiled a sweeping investigation of the mutual fund industry that focused on trading abuses. More than 100 financial firms received requests for information in that probe, which is still continuing.
Spitzer has also taken aim at certain practices in the pharmaceutical industry, and his investigations into Wall Street stock research resulted in 10 major banks, including Citigroup Inc. and Merrill Lynch & Co., agreeing to a $1.4 billion settlement with regulators in April 2003.