New York Gov. David Paterson’s past with Caroline Kennedy may wreak political havoc on him and his administration.

An ethics panel is currently reviewing a letter from three watchdog groups that claim Paterson’s administration leaked private information about Kennedy after she withdrew her bid for Hillary Clinton’s Senate seat. That withdrawal caused a firestorm of speculation; most people, including some of Paterson’s camp, assumed Kennedy would be offered — and would accept — the seat, which Clinton had to give up to become secretary of state.

Following Kennedy’s January 22 withdrawal, members of Paterson’s administration called local press and began suggesting that an embarrassing private matter may have sparked Kennedy’s decision. Reasons given included illegal domestic help and tax woes, The New York Times reports.

Paterson’s team later admitted to exaggerating some information. And that’s where the trouble really started. Not only did Paterson officials release private information, say the watchdog groups, but they did so for political reasons: namely, to distance themselves from what turned out to be a public-relations disaster for Paterson.

An ethics investigation would likely cause irreparable damage to the governor’s already-tarnished career.