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Washington (CNN) -- John Edwards' lawyer Greg Craig was in North Carolina on Friday amid signs that the former senator and 2008 presidential candidate likely either will be indicted or he and the Justice Department will agree on a plea deal, a source with knowledge of the investigation said.
The source, who refused to speak on the record due to the sensitivity of the matter, could not predict what the outcome will be.
Earlier this week, CNN was told that a scheduled meeting of the grand jury hearing the case had been postponed. The grand jury probe has been ongoing.
Sources last week said that prosecutors had been given authorization to bring an indictment against Edwards, but there have been discussions under way concerning a possible plea deal in which he would agree to plead guilty. The sources have refused to detail the state of those discussions.
Edwards had not wanted to plead guilty to a felony, because he could lose his law license, a source familiar with the inquiry previously told CNN.
Edwards' fall: From golden boy to sleazy tabloid tale
The Associated Press first reported Craig's travel.
The case involves the financial aid given to Edwards' mistress, Rielle Hunter. During their affair, Hunter became pregnant with Edwards' baby, though at first he denied he was the father.
2008: John Edwards admits affair Video
While prosecutors believe the monetary help given to Hunter by two of Edwards' political backers should have been considered campaign donations, defense attorneys disagree.
Edwards' attorney Craig has said his client "has done wrong in his life, and he knows it better than anyone, but he did not break the law." He said the government's theory of the case "is wrong on the facts and wrong on the law."
The government is believed to be building its case that Edwards violated campaign finance law on an 11-year-old advisory opinion issued by the Federal Election Commission, which asserted that a gift to a candidate for federal office would be considered a campaign contribution, a source with knowledge of the inquiry said this week.
The decision, dated June 14, 2000, is known as "Harvey." It's named after a man named Phillip Harvey who sought guidance from the FEC because he wanted to give money to someone who was preparing to run for federal office, but didn't want the money to be used for campaign purposes.
The opinion is important because Hunter received more than $1 million from two contributors - 100-year-old philanthropist Rachel "Bunny" Mellon of Virginia and attorney Fred Baron, who has since died.
Edwards, Mellon meet
Edwards' attorneys have said that the money was not and should not be considered political contributions. If it wasn't a political contribution, what was it? The most widely reported theory -- which the Edwards team has publicly neither confirmed nor denied -- is that the money was given to keep Edwards' wife, Elizabeth, from finding out about his mistress and child.
Elizabeth Edwards loses battle with cancer
The source with knowledge of the inner workings of the case and other legal observers have noted that the advisory opinion is shaky ground to base a federal prosecution on because it is not a black-letter federal statute, and apparently has not been cited in any important case law, or as legal authority behind any important court decisions.
Federal prosecutors in North Carolina have declined to comment on the case because it is a matter relating to a grand jury.
Other experts have said the Justice Department would have a strong case in court if it could prove Edwards knew about the funds and what they were being used for - a contention he has denied.
The source, who refused to speak on the record due to the sensitivity of the matter, could not predict what the outcome will be.
Earlier this week, CNN was told that a scheduled meeting of the grand jury hearing the case had been postponed. The grand jury probe has been ongoing.
Sources last week said that prosecutors had been given authorization to bring an indictment against Edwards, but there have been discussions under way concerning a possible plea deal in which he would agree to plead guilty. The sources have refused to detail the state of those discussions.
Edwards had not wanted to plead guilty to a felony, because he could lose his law license, a source familiar with the inquiry previously told CNN.
Edwards' fall: From golden boy to sleazy tabloid tale
The Associated Press first reported Craig's travel.
The case involves the financial aid given to Edwards' mistress, Rielle Hunter. During their affair, Hunter became pregnant with Edwards' baby, though at first he denied he was the father.
2008: John Edwards admits affair Video
While prosecutors believe the monetary help given to Hunter by two of Edwards' political backers should have been considered campaign donations, defense attorneys disagree.
Edwards' attorney Craig has said his client "has done wrong in his life, and he knows it better than anyone, but he did not break the law." He said the government's theory of the case "is wrong on the facts and wrong on the law."
The government is believed to be building its case that Edwards violated campaign finance law on an 11-year-old advisory opinion issued by the Federal Election Commission, which asserted that a gift to a candidate for federal office would be considered a campaign contribution, a source with knowledge of the inquiry said this week.
The decision, dated June 14, 2000, is known as "Harvey." It's named after a man named Phillip Harvey who sought guidance from the FEC because he wanted to give money to someone who was preparing to run for federal office, but didn't want the money to be used for campaign purposes.
The opinion is important because Hunter received more than $1 million from two contributors - 100-year-old philanthropist Rachel "Bunny" Mellon of Virginia and attorney Fred Baron, who has since died.
Edwards, Mellon meet
Edwards' attorneys have said that the money was not and should not be considered political contributions. If it wasn't a political contribution, what was it? The most widely reported theory -- which the Edwards team has publicly neither confirmed nor denied -- is that the money was given to keep Edwards' wife, Elizabeth, from finding out about his mistress and child.
Elizabeth Edwards loses battle with cancer
The source with knowledge of the inner workings of the case and other legal observers have noted that the advisory opinion is shaky ground to base a federal prosecution on because it is not a black-letter federal statute, and apparently has not been cited in any important case law, or as legal authority behind any important court decisions.
Federal prosecutors in North Carolina have declined to comment on the case because it is a matter relating to a grand jury.
Other experts have said the Justice Department would have a strong case in court if it could prove Edwards knew about the funds and what they were being used for - a contention he has denied.