The Charlotte Observer reports that John Edwards is aware authorities are examining campaign expenditures to determine if campaign money was used to cover up an affair with a campaign worker.
Edwards has publicly admitted to an affair with Rielle Hunter who is said to have provided video services to the campaign. Records indicate Hunter was paid for her services by a political action committee aligned with Edwards. One of the lines of inquiry made by federal investigators will be to determine if Hunter was paid appropriately for services rendered. If there is an indication Hunter provided services with a reasonable fair market value of say $20,000 but was paid $100,000 the matter could quickly end up before a federal grand jury.
Overpaying for services has been a favorite way for politicians to funnel money to friends and relatives for years. One recent example of this can be found in the Politico story about Charles Rangel paying a company owned by his son $80,000 for two web pages that looked like high school kids had done them. Experts who viewed the web pages valued the work in the $2,000 range and nowhere near the $80,000 paid by the campaign.