ST LOUIS (LALATE) – Rachel “Bunny” Mellon and Fred Baron were the source of money for John Edwards examined by a grand jury, claim prosecutors. Rachel “Bunny” Mellon and Fred Baron funds for Rielle Hunter have for months dominated LALATE reports about the grand jury investigation into Edwards. But Friday, prosecutors confirmed in their four count indictment that the alleged source of the funds at issue did in fact come from Bunny Mellon and Fred Baron (both pictured above).

John Edwards will argue that money received did not follow the facts nor law outlined by prosecutors. Insiders believe that Edwards will assert that funds given were not illegal campaign contributions. But today we learned how much money was involved and who were the alleged sources of the money.

In a four count indictment tonight, prosecutors refer to a Person C and a Person D reportedly. “Person C” is allegedly heiress Rachel “Bunny” Mellon, and “Person D” is allegedly the late Fred Baron, claims CBS. For months, LALATE has been reporting that funds given during that period allegedly from Mellon and Barons were the subject of the grand jury’s investigation into Edwards’ actions. While the source of the money may or may not be in dispute, the purpose for the money and the recipient is reportedly being dispute. Mellon was a Edwards’ donor, Baron, a famed trial attorney like Edwards, was his finance campaign.

Edwards was charged today for four counts of illegal campaign contributions, conspiracy and making false statements. But where did the money go?

Mellon wrote in one letter she was angry about reports Edwards was paying over a thousand dollars for a haircut. “It inspired me – from now on, all haircuts, etc., that are necessary and important for his campaign – please send the bills to me… It is a way to help our friend without government restrictions”. Checks from Mellon allegedly went toward furniture amounting to roughly a quarter million dollars, claims reports. Baron allegedly paid for Hunter’s chartered air flights, her rental of a Santa Barbara mansion near Oprah previously detailed on LALATE, and more.

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initially, Young claimed to be Hunter’s baby daddy even though Hunter knew it was Edwards’ child. Young in his book “The Politician” claimed that Lisa Blue-Baron would comfort Hunter regularly during the debacle.

Prosecutors will argue that Rachel “Bunny” Mellon and Fred Baron allegedly paid Hunter and staffer Andrew Young upwards of $1 million. Young was hired to parade as Hunter’s baby daddy. He claims he was paid allegedly $30,000 for that role until both Hunter and Edwards came clean about paternity. The Santa Barbara mansion reportedly cost $20,000 a month.

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LOS ANGELES (LALATE) – The Rielle Hunter scandal of John Edwards involved deception and lies far before today’s news. John Edwards from 2008 to last year lied to news about his relationship and paternity with Rielle Hunter and her child. The news story began with Edwards locking himself in the Beverly Hills Hilton to avoid the National Enquirer’s reporters. The paper went on garner award nominations for its coverage. The Enquirer exposed first that Hunter was Edwards’ mistress and that the Andrew Young relationship with Hunter was a scam. But after three years of being chased, literally, through hotel lobbies, the one time political candidate in 2010 came clean and admitted to not just the affair but also paternity.

Therein rests today’s confusion. Being untruthful about paternity, and fabricating Andrew Young as the father of his child, is not what John Edwards was indicted for today. Rather, prosecutions claim that Rachel “Bunny” Mellon and Fred Baron gave Andrew Young and Hunter nearly $900,000 as illegal campaign contributions to keep the Hunter scandal secret.

Edwards disagrees.

John Edwards will plead not guilty today and is expected to defend the case as to the facts and law. Edwards, who himself made fortunes as a trial attorney, is expected to assert that those funds did not violate campaign contribution laws.

Assistant Attorney General Lanny Breuer today issued a statement that “The centerpiece of Edwards’ candidacy was his public image as a family man”. But those laws, contrary to today’s news statement, have nothing to do with Edwards’ “public image”.

Yes, Edwards cheated on his wife, yes he had a love child, but did funds that Hunter and Edwards’ assistant receive amount to violation of campaign contributions? Edwards says absolutely not, and Bruer says positively it was illegal.

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“We will not permit candidates for high office to abuse their special ability to access the coffers of their political supporters to circumvent our election laws”. He added “Our campaign finance system is designed to preserve the integrity of democratic elections – for the presidency and all other elected offices – and we will vigorously pursue abuses of the kind alleged today.”

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LOS ANGELES (LALATE) – Funds allocated for Rielle Hunter during John Edwards’ 2008 campaign will result in Edwards being charged today, claims reports. Rielle Hunter funds designated during Edwards’ 2008 presidential campaign have be the subject of federal grand jury investigation for over a year. In recent weeks, multiple news reports have incorrectly predicted an indictment was hours away. Today, another report claims the Edwards indictment is set for Friday.

A North Carolina federal grand jury has been investigating Edwards’ used of campaign funds during his 2008 presidential run. Stacy Lloyd III, son of heiress Rachel Mellon, and his sons, Stacy IV and Thomas along with Thomas Lloyd’s wife, Ricki, have reportedly been among the persons called to the grand jury.

One of the reported hey witnesses has been Dallas attorney Lisa Blue-Baron. She is the widow of Fred Baron who worked as Edwards’ finance chairman during his presidential runs in 2004 and 2008. Fred Baron told the Dallas Morning News in 2008 that he paid for Hunter’s relocation. But Baron said the money was not campaign funds but his own money.

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The twist has been not just Hunter but also Andrew Young. Baron claimed he had paid for Hunter and Edward’s former aide Andrew Young to move to California. Initially, Young claimed to be Hunter’s baby daddy even though Hunter knew it was Edwards’ child. Young in his book “The Politician” claimed that Lisa Blue-Baron would comfort Hunter regularly during the debacle.

The grand jury investigation has reportedly focused on whether (1) Edwards knew about the money and (2) whether it was deemed a gift or as rather part of the campaign. The spending on Hunter was reportedly lavish. She had a new BMW and was staying in a Santa Barbara estate near Oprah at a possible price tag of $20,000 a month.

In July 2008, the Enquirer claimed that Edwards and Hunter had an affair and a child. By summer 2008, Edwards admitted to the affair, but did not admit to being Hunter’s baby daddy. “Two years ago I made a very serious mistake which fed a self-focus, an egotism, a narcissism that leads you to believe that you can do whatever you want” he said in a news statement at the time. It would not be until January 2010, three years later, that he would admit publicly to paternity of Hunter’s child.

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LOS ANGELES (LALATE) – John Edwards’ indictment on Rielle Hunter funds is expected and imminent, reports news today. John Edwards’ funds to mistress Rielle Hunter have prompted a swift move by the Justice Department. Edwards is reportedly aware that the United States Department of Justice will seek indictment for funds given to Rielle Hunter, reports ABC. Edwards, in turn, is expected to plea bargain the case. Edwards has been the subject of investigations for over a year as to alleged violations of campaign laws.

In February, a grand jury investigation focused on the alleged campaign violations by Edwards. The investigation has focused on whether  Edwards knew about the money given to Rielle Hunter and whether the money was deemed a gift for Rielle Hunter or as rather part of the campaign.

Prosecutors have looked at Rielle Hunter’s company, Midline Groove Productions, which did videotape work for Edwards in 2006 during campaign stops in Iowa and New Hampshire. Hunter was paid $250,000 reportedly from three organizations: One America Committee, the Alliance For A New America, and the Center for Promise and Opportunity.

Thereafter, Andrew Young was alleged paid $30,000 to act the part of Hunter’s baby daddy. Edwards has never told news why he continued to misrepresent his relationship, and paternity, to news from 2008 to 2010.

He had said “It was wrong for me ever to deny she was my daughter and hopefully one day, when she understands, she will forgive me. To all those I have disappointed and hurt, these words will never be enough, but I am truly sorry.”

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If an indictment is sought, the core legal issue reportedly will focus on whether Edwards’ Presidential campaign funds were used, not for his campaign, but to hide then mistress Hunter. The funds were substantial, claim investigators. Reportedly Hunter was put up in a Santa Barbara mansion near even Oprah Winfrey. Hunter was allegedly given a brand new BMW, air travel and other alleged gifts. Her rental residence reportedly cost upwards of $20,000 a month.

Edwards from 2008 to 2010 misrepresented to news his affair with Hunter. By summer 2008, Edwards admitted to the affair, but did not admit to being Hunter’s baby daddy. “Two years ago I made a very serious mistake which fed a self-focus, an egotism, a narcissism that leads you to believe that you can do whatever you want” he said in a news statement at the time. In January 2010, nearly three years after the scandal erupted,  Edwards would admit to fathering a child with Hunter.

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CORAL GABLES (LALATE) – Will the John Edwards grand jury investigation charge Edwards for alleged improper use of campaign funds on Rielle Hunter? The grand jury investigation – into funds paid to Rielle Hunter allegedly by John Edwards campaign fundraisers – will get a resolution shortly. In late February, LALATE first reported that the investigation is nearing a resolution. Today on GMA, ABC is reporting the same.

The issue surrounds whether Edwards’ Presidential campaign funds were used, not for his campaign, but to hide then mistress Hunter. Moreover, the investigation has focused on whether Edwards had any knowledge of the alleged wrongdoing.

It is alleged that such funds put Hunter up in a lavish Santa Barbara mansion near even Oprah Winfrey, got her a new car, air travel, and more. She allegedly had a new BMW and was staying in a lavish Santa Barbara estate for a possible price tag of $20,000 a month.

Moreover, Hunter’s company was allegedly paid more than a quarter million dollars from three organizations: One America Committee, the Alliance For A New America, and the Center for Promise and Opportunity.

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Then Rachel “Bunny” Mellon and Fred Baron allegedly paid Hunter and staffer Andrew Young upwards of $1 million. If you recall, it was Andrew Young who was hired to parade as Hunter’s baby daddy. He claims he was paid $30,000 for that role until both Hunter and Edwards came clean about paternity.

The federal grand jury investigation is being handled by U.S. Attorney George Holding. While some reports have called this matter fast moving, it has been two years. Hunter is not under investigation.

Meantime, Edwards has hired Washington legal eagle Greg Craig in recent weeks to assist going forward.

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