Kerik Apologizes After Withdrawing as Homeland Security Nominee

Bush advisers, now having to deal with the kind of messy situation they had so far avoided, were taking Kerik at his word that he had not intentionally misled them, the official said.

Because the issued involved immigration -- and the Homeland Security Department includes the immigration agency -- Kerik had no choice but to withdraw, Giuliani said. "Every time immigration issues came up this would be a problem."

"It would have been a bitter, difficult battle that probably would have ended without him getting confirmed," Giuliani said.

In the AP interview, Kerik said that on Wednesday -- five days after Bush announced his selection -- he discovered financial records "that led me to question" whether proper taxes had been paid for the housekeeper. By Friday, he said, "I came to realize ... there may have been a question with regard to her legal status in the country."

Since his nomination was announced, other issues have surfaced indicting that Kerik's confirmation by the Senate might not have gone smoothly.

Some lawmakers have questioned whether Kerik had the management experience to oversee the department, which has 180,000 employees.

Democrats also focused on potential conflict of interest issues because of Kerik's recent $6.2 million windfall from exercising stock options in a stun gun company that does business with the federal department.

According to a report in Newsweek, Kerik also was involved in a civil dispute six years ago after he failed to pay maintenance fees on a New Jersey condominium he owned. At one point an arrest warrant was issued, the magazine said.

Kerik on Saturday denied an arrest warrant was ever issued, but said he had been ordered to appear at a foreclosure hearing. "The lawsuit was settled, the apartment was not foreclosed on," he added.

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Associated Press writer Jennifer Loven contributed to this report.