New York (CNN) -- A self-described "ex-madam" who claims she supplied fellow city comptroller candidate Eliot Spitzer with escorts several years ago is facing charges of illegally distributing prescription drugs, authorities said.
Kristin Davis, 38, was arrested on Monday night and charged with selling Adderall, Xanax and other drugs. She's also accused of orchestrating the sale of approximately 180 oxycodone pills for cash.
The candidate was released Tuesday on $100,000 bail, with a preliminary hearing scheduled for September 5. Prosecutors said she will have strict pretrial supervision.
"Prescription drug abuse is the fastest-growing drug problem in this country, resulting in more overdose deaths than heroin and cocaine combined, and this office has a zero tolerance policy towards anyone who helps to spread this plague at any level," Preet Bharara, Manhattan U.S. Attorney, said in a statement.
Davis is charged with four counts of distributing and possessing with intent to distribute a controlled substance. She faces a maximum sentence of 20 years in prison for each count, if convicted.
Prosecutors allege that from 2009 through 2011 Davis bought ecstasy pills, Adderall pills and Xanax pills from an FBI cooperating witness at least once a month, paying hundreds of dollars for each purchase. She told the witness she provided these drugs to people at house parties, authorities say.
An attorney for Davis was could not be immediately reached for comment.
Davis' campaign manager, Andrew Miller, said he was aware of the arrest but couldn't provide any information.
Based on information from the FBI's witness, the FBI set up a sting operation from January through March of this year, in which Davis sold pills on three separate occasions to the witness, who she believed to be a drug dealer, the complaint states.
Davis became synonymous with the prostitution scandal involving Spitzer, then serving as governor. She has no proof of her arranging escorts for Spitzer, but she did spend four months behind bars because of her business. Spitzer, a Democrat, resigned in 2008.
A former hedge fund senior vice president, Davis is running as a Libertarian with a plan to legalize marijuana in New York City.
CNN's Jesse Solomon and Mark Preston contributed to this report.