James Hill of ABC News reported this week,

The United States Department of Justice has green-lighted the prosecution of former presidential candidate John Edwards for alleged violations of campaign laws while he tried to cover up an extra-marital affair, ABC News has learned. […]

Edwards has been the focus of a lengthy federal investigation focusing on hundreds of thousands of dollars allegedly provided by two wealthy supporters. The government will contend those were illegal donations that ultimately went to support and seclude his mistress, Rielle Hunter.

Some unnamed sources suggest Edwards’ legal team is working on a plea agreement so that he would not have to stand trial. But a high-powered attorney for Edwards, former White House counsel Greg Craig, sounds ready to fight, asserting that “not one penny from the Edwards campaign was involved,” there is “no civil or criminal precedent for such a prosecution,” and the “Justice Department has wasted millions of dollars and thousands of hours on a matter more appropriately a topic for the Federal Election Commission to consider, not a criminal court.” Ben Smith reports for Politico that Craig

is said to be pushing for a trial and arguing that prosecutors will not be able to win in the vague and untested terrain of campaign-finance law – as he made clear in a defiant statement to reporters Wednesday. Edwards’s longtime friend and lawyer Wade Smith, a fellow veteran of the North Carolina courts, is said to be more inclined to settle. And Edwards himself appears, associates say, to be sorely tempted to take his chances in an arena that made his career and his fortune.

“John needs money. He needs to work, so he can’t give up his law license,” said a source who knows Edwards but who requested anonymity. “He thinks, ‘I get in that courtroom, I get in front of a North Carolina jury…’ “

For the sake of Edwards’ three children under age 18, I would advise him to settle in order to avoid jail time. But I don’t know the legal terrain and have no idea what his chances would be to escape conviction. If conducting an affair during a presidential campaign is any guide, Edwards isn’t risk-averse. Then again, Craig may just be posturing to negotiate a better plea deal for his client.

As far as I know, the money allegedly used to cover up Edwards’ affair came from large donations to his One America Committee (a PAC)–not his 2008 presidential campaign funds. I don’t know whether that makes any difference as a point of law.

Share any relevant thoughts in this thread.

UPDATE: Defense attorney Jeralyn Merritt discusses the case here:

If the U.S. Attorney is demanding a plea to a felony count, I suspect John Edwards will fight. I hope he does. Regardless of your opinion of John Edwards and his personal life, he’s the sole parent now to two young children. Mistreating a donation as a gift (particularly if you relied on the advice of your legal counsel in doing so), when there is a paucity of court decisions defining the difference between them, seems over the top.

If Edwards is offering to plead to a misdemeanor and probation, the Government should grab his proffered ounce of flesh and forego insisting on a pound. The only reason to demand a felony is to justify the cost of the Government’s absurdly lengthy and intrusive investigation.

Jan Crawford reports for CBS News on the arguments underpinning a potential Edwards defense:

Edwards’ legal team argues that the prosecution’s theory is unprecedented and wrong. They say there is only one case involving gifts to federal candidates that’s even remotely comparable — and it not only is distinguishable, but also was merely an advisory opinion by the FEC that never has been cited as authority for a criminal prosecution.

In that case, the FEC said a proposed gift to a federal candidate was illegal because the donor wouldn’t have made it if the candidate weren’t running for office. Edwards, on the other hand, had long-standing personal relationships with donors Fred Baron and Bunny Mellon that continued after he withdrew from the race. In fact, Edwards had lunch with Mellon on Thursday.