Things don't seem to be getting any better for former senator and 2008 presidential contender John Edwards. His wife, Elizabeth, is releasing a revealing book chronicling her reaction to news that Edwards was having an affair. And now his use of campaign funds, some of which may be related to that affair, is being investigated by a U.S. attorney.

The News and Observer of Raleigh was first to report that the North Carolina Democrat has acknowledged the investigation. At issue is millions of dollars Edwards' campaign received from nonprofit organizations, many of which not subject to more stringent Federal Election Commission restrictions.

Whether Edwards used campaign funds to mask his affair with Rielle Hunter is also part of the investigation.

Here is Edwards' statement to the News Observer:
"I am confident that no funds from my campaign were used improperly," Edwards said in a statement. "However, I know that it is the role of government to ensure that this is true. We have made available to the United States both the people and the information necessary to help them get the issue resolved efficiently and in a timely matter. We appreciate the diligence and professionalism of those involved and look forward to a conclusion."

And here are the key grafs:
A review of Edwards' campaign money will turn up a cluster of nonprofits, some not subject to the same rules of transparency as official campaign organizations. Records of one that does disclose donors, the Alliance for a New America, show that Edwards' 2008 campaign got a huge boost from a single source: $3.48 million from a holding company for Rachel "Bunny" Lambert Mellon, a 98-year-old matriarch of the late industrialist Andrew Mellon's family.

...

Records show that Hunter was paid by a political action committee aligned with Edwards. She received $114,000 to film Edwards as he hopscotched the nation to rally crowds in the fight against poverty. She followed him to Uganda, where he met with starving children orphaned by attacks by rebel forces. Her "webisodes" live still on the Internet.

The investigation is being conducted by the office of U.S. Attorney George Holding, and a federal grand jury could consider evidence. Holding, a Republican based in Raleigh, declined to comment on Edwards. Holding has helped prosecute several prominent Democrats.

jeremy.jacobs@thehill.com