Aide Said John Edwards Knew About Cover-Up Spending

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Young said a desperate Edwards started looking for a way out: He convinced Young, who is married with his own children, to claim paternity of Hunter's child. He tried to shield Hunter's pregnancy from the media by sending Hunter, Young and Young's wife into hiding.

In December 2007, the group began traveling by private jets to luxury hotels on a cross-country game of hide and seek. It was all financed by wealthy Edwards campaign operative Fred Baron, and it was all with Edwards' approval, Young said.

"Maybe he didn't know where [we were going], but he knew about the money. He knew about the methodology and he knew about the sources," he said.

Before his death in October 2008, Fred Baron denied that Edwards was in on the scheme. Baron said the trips were entirely his idea.

Hunter and the Youngs eventually settled at a California mansion, rented by Baron for $20,000 a month.

In February 2007, Hunter gives birth. When Young called Edwards to tell them the news, Young said the senator was very short with him.

"It was bone chilling to me," he said. "He is right in the middle of negotiating with Obama and Hillary [Clinton] for being VP or attorney general -- and that took precedence over his child being born."

In July 2008, Edwards traveled to Los Angeles to raise money for the homeless -- but he was also there to visit his newborn child at a Beverly Hills hotel. What he didn't know was that reporters from The National Enquirer had staked out the hotel.

The Enquirer's Allan Butterfield confronted Edwards at the hotel.

"We said to him, 'Are you here to see Rielle Hunter?'" Butterfield said. "He looked like his world had just passed him by, you know, like 'Oh, I'm done.'"

Young said Edwards called him the next morning.

"He was bawling, he was crying, and he said, "I have, I have been caught. I have been caught,'" Young said.

But three weeks later, in an interview with ABC News, when Edwards admitted the affair, he denied that he was the baby's father.

At that point, Young had publicly declared that he was the father. When asked if he believed that to be true, Edwards said he didn't know.

Young said Edwards' comments made him angry.

"At this point when he was admitting an affair, he could have cleared my name," he said.

Despite Edwards' denials, it was soon known that he was the father. The cover-up was over and federal investigators immediately began to follow the money trail, with Andrew Young a witness to the huge transactions.

Andrew Young said he regrets being part of the latest chapter in the rise and fall of John Edwards.

"I am so sorry for my part in this. I am so sorry for what I did to my family.This is going to be on my tombstone," he said.

Watch the latest episode of "20/20" here.

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