'Evidence of Prostitution' Seen in Secret Service Scandal

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Commander Gen. Douglas Fraser, who heads the U.S. Southern Command, said he is "disappointed by the entire incident and that this behavior is not in keeping with the professional standards expected of members of the United States military."

He also pledged a thorough investigation of the military members who may have participated in the incident, and punishment, if appropriate, in accordance with established policies and the Uniform Code of Military Justice.

White House press secretary Jay Carney said President Obama was made aware of the allegations but said it "would not be appropriate for the President to characterize something that's being looked into by the Secret Service at this time."

Carney insisted, however, that the incident has not been a distraction for Obama, who is participating in the two-day Summit of the Americas with other Western Hemisphere leaders.

Officials said the investigation of the agents' behavior would center less on moral or legal aspects of the alleged behavior and more on whether Secret Service and U.S. military protocols were violated -- and whether the security of the president could have been compromised.

"If all this happened, this compromised the agents themselves," King said. "It left [the agents] open to be threatened and blackmailed in the future. ... They could have been threatened or blackmailed secondly to bring prostitutes in an area that's a secured zone. It just violates a basic code of conduct."

The Secret Service most recently faced public embarrassment and intense scrutiny in November 2009 when several agents allowed two uninvited guests onto White House grounds for a state dinner and photo line with the president. The so-called "Gate-crasher" incident resulted in three agents later being placed on administrative leave.

ABC News' Mary Bruce and Devin Dwyer contributed to this report.

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