Edwards Facing Federal Investigation

May 4, 2009

First entertainment journalists exposed his extramarital affair, the child born allegedly from the affair, then he dropped out of the presidential race, and now John Edwards is acknowledging that he is under federal investigation.

The former North Carolina Senator and two-time Democratic presidential candidate is facing a federal investigation for misappropriation of campaign funds. His political action committee paid over $100,000 for video production to the company of the woman with whom he had an affair, Rielle Hunter.

On Sunday, Edwards explained in a public statement that he is cooperating with the investigation. He said, "I am confident that no funds from my campaign were used improperly. However, I know that it is the role of the government to ensure that this is true."

Edwards also headed fundraising for two non-profit organizations and a poverty center at his alma mater, which are under investigation as well.

His political action committee paid Hunter's company in 2006 for several months for internet videos documenting his actions leading up to his 2008 presidential run and paid her firm $14,086.50 on April 1, 2007 for a "furniture purchase."

When the 2007 payment was made by Edwards's political action committee, they claimed to only have $7,932.95 according to their filings with the Federal Election Commission.

From April 1 to June 30, 2007, there were five contributions made to the political action committee with one of them being for the "furniture purchase" from Edwards's presidential campaign. The other four contributions were conveniently made on the last day of the reporting period, June 30.

Fred Baron, an attorney and Edwards's national finance chairman, stated in 2008 that he was making payments to Hunter to live in California, but that Hunter was not working for the campaign at the time and no campaign funds were used. Edwards claims he did not know about the payments.

Back to People Magazine Daily - Click Here