Report: Schwarzenegger Possible Criminal Inquiry Over Alleged Misuse of Public Funds

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Did former California Governor Arnold Schwarzenegger misuse tax payer funds to cover up sexual liaisons?

Radar Online claims the Californian Attorney General is launching a preliminary evaluation, being termed an "inquiry," to determine whether the former governor used his state-funded security details -- California Highway Patrol officers and vehicles -- to cover up women being escorted into his suite at the Sacramento Hyatt Regency.

A source tells "Entertainment Tonight" that "The whole thing has been proven false. The Attorney General isn't doing anything."

According to The National Enquirer, veteran hotel security officer William Taylor said he witnessed Schwarzenegger using the security details at his disposal "to ferry scantily-clad women in-and-out of his suite" where he and wife Maria Shriver often stayed.

Schwarzenegger's attorney, Martin Singer, callsthe Enquirer story "completely false." Singer tells ET, "Today's story from TheNational Enquirer is totally and completely false. Unfortunately, the media's relentless desire for new information has some outlets running stories that are made up by paying sources that have zero credibility. My client stated from the beginning that he takes full responsibility for his actions and deserves the public and media criticism. This does not entitle some in the media to be totally irresponsible."

According to The National Enquirer, Taylor claims, "They'd hurriedly escort the women through the service entrance on the second floor parking garage to the elevator that went to the governor's private wing... The women would usually stay for two to four hours and either leave through the hotel's main entrance or be driven away by the CHP in the same official vehicles." The National Enquirer also says that Taylor passed a polygraph test concerning his claims.

Others are speaking out on behalf of the former governor and this alleged situation. Retired CHP Sergeant Mark Hammond says, "I can say without a shadow of a doubt as a supervisor of his protective detail that at no time did I see Governor Schwarzenegger say or do anything that could be deemed inappropriate, and I was at his side for 7 years. As a supervisor, if anything had occurred, I would have been notified, even if it was technically off the record on his private time."

Retired CHP Officer Manny Trevino says, "I was an officer on Governor Schwarzenegger's protective detail for 7 years. During that time, I was at his side in California and abroad, and I can report that the claims in the National Enquirer regarding allegations about the governor's detail covering for him during any illicit activity are completely untrue. In all the time I worked with him, I never witnessed the governor acting in a less than honorable manner. I also never heard any other officer discuss any such claims. Governor Schwarzenegger always treated the officers on his detail with respect, and we had nothing but respect for him in return."

And Hyatt Regency Sacramento General Manager Ulrich Samietz adds, "We are not familiar with William Taylor, who claims to be a former head of security at the Hyatt Regency Sacramento in the National Enquirer article. As far as Governor Schwarzenegger is concerned, he was always respectful to our associates during his stays here."