(CNN) - More trouble for Jesse Jackson, Jr. The Chicago Sun Times reports the U.S. congressman is working on a plea deal with federal officials over alleged misuse of campaign funds.

According to the paper, Jackson is being investigated for allegedly using campaign money to decorate his Washington home and for possibly using $40,000 to buy a Rolex watch for a female friend.

A source told the paper, "no one has pled guilty, but plea discussions are ongoing."

Jackson easily won re-election Tuesday night.

He is still reportedly undergoing treatment at the Mayo Clinic for depression and bipolar disorder.

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