Rep. Matt Gaetz
Rep. Matt Gaetz (R-FL) (Photo: Gage Skidmore)​

On Tuesday, former federal prosecutor Joyce Vance flagged a court order sealing a status report in the case of a disgraced Florida tax official, Joel Greenberg -- and she said it potentially spells trouble for Rep. Matt Gaetz (R-FL), a Trump ally and associate of Greenberg's.

The decision means that Greenberg, who pleaded guilty to numerous charges last year including child sex trafficking, is likely continuing to provide useful information to prosecutors as a cooperating witness, she argued.

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Gaetz is under a monthslong federal investigation for allegations that he transported a teenage girl across state lines to perform sex acts. Greenberg has reportedly told prosecutors he was the one who introduced her to Gaetz, and that the two of them paid or otherwise compensated other women for sex. Investigators have also reportedly looked into whether Gaetz paid any of the women using illegal drugs or funds from his federal campaign account, all of which could theoretically increase his legal liability.

For his part, Gaetz has denied all of the allegations against him and claimed he is a victim of a political hit job, even trying to connect it to the first impeachment of former President Donald Trump, whom he claims was also falsely accused. But other reports have indicated his longtime allies are "quietly isolating" Gaetz in anticipation of the investigation reaching its conclusion.