Just when things couldn't get any worse for the former governor, the California Attorney General is reportedly launching an "inquiry" into the possibility that Arnold Schwarzenegger used state funds to cover up his affairs.

According to Radar Online and the National Enquirer, "multiple department sources" in the Attorney General's office have confirmed that the inquiry has been launched. One avenue of investigation may be allegations that Schwarzenegger used state police officers to transport and hide mistresses, as "veteran hotel security officer" William Taylor claims to the Enquirer:

"On three differed occasions after the governor arrived alone at the Hyatt Regency, CHP Dignitary Protection Services arrived in their official vehicles, black Ford Crown Victoria sedans - about one to two hours later with one or two young females.

"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."

Schwarzenegger, though his PR firm, denies the charges; according to Radar Online, he's also provided "statements from various CHP officials and one executive from the hotel in question." The Attorney General's office would not provide an official comment.

[Radar Online; image via AP]