A source claiming to have inside knowledge of the workings of John Edwards’ mistress's video company disputed a published report that the former North Carolina senator’s political action committee paid Rielle Hunter $14,000 for unused documentary footage.

In a story in Friday's New York Times, sources close to Edwards claimed that the former presidential candidate's political action committee sent a check for $14,000 to the video company run by Hunter to buy the footage.

However, a source that claims to be knowledgeable about the company and the way it was run told FOX News on Friday that is untrue. According to the source, no deposits showed up in the bank account of Midline Groove Productions after January 2007. The source in the Times story claimed that the money was sent in April 2007.

The Times source also reportedly said that the money was sent in exchange for unused footage that Midline had from Hunter's "webisodes" about Edwards. But FOX News' source who knew the ins and outs of the business said that all footage was returned no later than February 2007 to the Edwards campaign.

And there would not have been a need for the Edwards campaign to pay for the footage, the source said, since the campaing already owned it.

The source added: "Edwards' campaign was always very sensitive about the footage and as such they retained all rights."

The source also said it was unlikely a check would have gone directly to Hunter. Even so, as far as the accounting for Midline went, "everything was done super, super by the books because of the nature of the client," the source said.

Click here for the New York Times story.