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ELIOT 'MADAM' EYES A BREAK

By LAURA ITALIANO

June 20, 2008

Independence Day may come a few days early for an alleged ex-madam to former Gov. Eliot Spitzer.

Since March 25, buxom blonde Kristen Davis has been in jail - in lieu of $2 million bail - on state prostitution charges that are unrelated to the federal investigation involving Spitzer.

Yesterday, Manhattan Supreme Court Justice Thomas Farber told Davis that on June 30, he'll consider lowering bail.

"It strikes me that $2 million is somewhat high," Farber said, directing lawyer Mark Jay Heller to make a new bail application.

Sources close to the federal investigation into Spitzer's hooker ring, Emperors Club VIP, have said financial records also link the disgraced ex-governor to Davis' former escort service, Dream Girls, which she allegedly ran from 2005 to 2007.

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