New York Attorney General Eliot Spitzer has claimed the federal government is undermining his ongoing investigation into the music industry and payola allegations, by negotiating their own deals with the record labels. Newsday reports that Spitzer has said the settlement amounts that are being considered by the FCC would undo his own investigations into the matter.

Spitzer said that while the FCC's own investigation was originally intended to work concurrently with his, but now the federal investigation is negotiating their own deals behind his back, hurting the Attorney General's case. Newsday reports that Spitzer has also shared all of his payola investigation information with the government.

Over the weekend, it was reported that Clear Channel, CBS Radio, Citadel and Entercom were close to settling with the FCC over the payola investigations. A Reuters source said the companies could settle for at least $1 million or more. The FCC investigation into payola was officially revealed in February by ABC News in their interview with Spitzer.