The prostitution scandal surrounding Gov. Eliot Spitzer (D-N.Y.) first began to unravel on Long Island, according to details of the investigation.

Investigators at an IRS office in Hauppauge were looking into some of the governor?s financial transactions as part of a routine tax inquiry. Anytime a bank sees unexplained deposits, withdrawals or transfers, it must notify the IRS.

Published reports say Spitzer tried to hide the money that was being channeled to an alleged prostitution ring. The court papers filed by prosecutors relay the content of a phone call involving a client believed to be Spitzer in which the transfer of money was discussed.

The governor has not been charged with any crimes. Last week, four people were arrested and charged with running the prostitution ring.