CALL ME CRAZY, but this sounds like an embarrassment for the Edwards campaign:

WASHINGTON (AP) – While a member of Congress’ investigation into U.S. and Saudi intelligence failures, presidential hopeful John Edwards agreed to sell his home for $3.52 million to the public relations expert hired by Saudi Arabia to counter charges it was soft on terrorism.

Edwards, a Democrat on the Senate Intelligence Committee, said Friday he learned sometime during the course of the 2002 transaction – months after the initial offer was signed but before the deal fell apart – that Michael Petruzzello worked for Saudi Arabia.

Though the sale broke off nearly a year ago, Edwards hasn’t returned or publicly disclosed Petruzzello’s $100,000 deposit, which remains in a real estate escrow account as the senator decides what to do with it. Edwards recently sold the house to another buyer for a half-million dollars less than Petruzzello’s offer.

Probably not as bad as it sounds at first blush, but not good.