Kristin Davis, 36, the former "Manhattan Madam" who said she provided prostitutes to the former governor, who is also one of her rivals for the controller's office, was released Tuesday on $10,000 bond and her lawyer said she will plead not guilty to four counts of distributing and possessing with intent to distribute a controlled substance, the New York Daily News reported Wednesday.
Davis, who is considered a long shot candidate for New York city controller, was arrested on allegations of selling prescription pills including amphetamines, oxycodone and muscle relaxants to an FBI informant.
Daniel Hochheiser, Davis' attorney, described the charges as "a hearsay complaint based on the unsworn statements of an admitted drug dealer seeking leniency."
However, authorities said they have audio and video recordings of Davis' dealings with the undercover informant.
Davis served nearly four months in prison in 2008 for heading a prostitution ring that she claimed had Spitzer as a client. Spitzer, who resigned from office when his encounter with a different prostitute was revealed, has denied using Davis' service.