© All rights reserved.

RALEIGH, N.C. – Failed presidential candidate John Edwards, whose political action committee paid more than $100,000 to his mistress' company, acknowledged Sunday that federal investigators were looking into how he handled his campaign funds.

Edwards' political action committee has been under scrutiny for making payments to a woman with whom he had an affair. Edwards admitted the affair with Rielle Hunter in August after months of denying tabloid reports about the relationship.

His political action committee paid Hunter's firm $100,000 for video production in a four-month span in 2006, and then paid an additional $14,086.50 on April 1, 2007. At the time, the PAC only had $7,932.95 in cash on hand, according to records filed with the Federal Election Commission.

That same day, according to the records, Edwards' presidential campaign paid the PAC $14,034.61 for what is listed as a "furniture purchase."

U.S. Attorney George Holding has declined to comment