The ultimate fall from grace, a Federal grand jury is about to indict John Edwards, The ENQUIRER has learned exclusively.

In another shocker, close sources say Edwards' estranged wife Elizabeth could help send the former presidential candidate to jail!

Edwards, the disgraced two-time Presidential loser, is being investigated by the feds, including the FBI and IRS, for possible campaign violations related to paying his mistress Rielle Hunter.

The grand jury has been meeting since April 2009, and insiders say an indictment is imminent.

"John is terrified that he's going to be indicted," a friend told The ENQUIRER.

"While he believes he's done nothing illegal in trying to hide his extramarital affair with Rielle and their daughter, he thinks the Feds are going to make an example of him."

For the FULL STORY with ALL the details you won't find anywhere else  - RUN - don't walk - to get the new issue of The ENQUIRER before it sells out - on sale NOW!

PLUS: Just WHO is the insider that may have hacked e-mails crucial to the investigation?!

SEE PREVIOUS COVERAGE BELOW (follow the money)