Associated Press

COLUMBUS -- Ohio Attorney General Marc Dann said Friday he had an affair with an employee, conceding his inappropriate behavior set a tone among aides that led to the sexual harassment scandal that has rocked his office for the past month.

Three aides were forced from their jobs and two others targeted for internal action at the end of a monthlong investigation into the harassment claims of two 26-year-old staffers against Anthony Gutierrez, a section chief who shared a Columbus-area apartment with Dann.

But Dann, a Democrat often compared to Eliot Spitzer, the former New York governor and attorney general disgraced in a prostitution scandal, insisted he will not resign despite investigators scolding his conduct and Republicans calling for him to step down.

"I'm apologizing, taking responsibility and making changes to continue to do that great work (of the office)," Dann said.

Even Democratic Gov. Ted Strickland, on whose coattails Dann rode into office in 2006, expressed anger over Dann's behavior. He saw "some double standard" in certain employees being let go while Dann stays and called for an independent, unbiased outside investigation.

Dann had punted the probe to a well-respected lieutenant, former Ohio State football player and state Sen. Ben Espy. The investigation uncovered a seedy underside to the top law enforcer's office rife with booze, profanity, inappropriate sexual activity, misuse of state vehicles and on-the-job threats involving the Mafia.

But Espy conceded that he had no authority to take action against Dann, his boss and a constitutional officer elected by the voters.

The investigators' report said Dann showed bad judgment in allowing one of the women who alleged harassment by Gutierrez to have drinks and pizza at the condo near Columbus shared by Dann, Gutierrez and another aide who was fired along with Gutierrez. Dann's longtime political adviser Leo Jennings III, accused in Espy's report of attempting to get another staffer to lie about details of a social event at which one of the harassment complaints occurred "so that it didn't seem like there was anything extramarital going on."

The fallout of the probe is an especially painful blow to Dann because, like Spitzer, he has made his political name fighting corruption. Seeming keenly aware of similarities to Spitzer, Dann explained that his wife, investigative journalism Alyssa Lenhoff, did not appear at the news conference because he thought the pictures of the Spitzers during his resignation "looked awful."

Dann, 46, would not identify the employee involved in the affair, which he called consensual and said came during a difficult time in his marriage. It was "relationship that was wrong and I deeply regret it," he said.

He apologized to his wife and three children for the pain and embarrassment.

Dann's scheduler, Jessica Utovich, with whom he had a close relationship in which they often used profanity, nicknames and teasing when e-mailing each other, also resigned voluntarily, said Tom Winters, first assistant attorney general. He did not give a reason, and a message seeking comment was left with Utovich.

Her name came up in sexual harassment complaint that said she was at Dann's condo wearing a sweat suit.

When interviewed by investigators, Dann said Utovich stayed overnight at the apartment he shared with the aides for reasons he would not discuss. Utovich refused during her interview to say whether she ever stayed overnight at the apartment, where Dann stayed while working away from his home in northeast Ohio.

Dann defended his work as attorney general but took responsibility for the scandal, acknowledging he was not prepared for the office or to run such a large agency.

"I did not create an atmosphere in my public and personal life that is consistent with the important mission of the Office of Attorney General," Dann said. "I am heartbroken by my failure to recognize the problems being created and by my failure to stop them."

Kevin DeWine, deputy chairman of the state GOP, said Dann allowed immoral and unethical behavior to thrive in his office.

"He turned the attorney general's office into a raunchy frat pad," he said.

Dann is the third high-ranking official around the country to be marred by sexual scandal in recent months. Spitzer resigned abruptly in March after revelations that he had been a customer of a high-end call girl service. And Detroit Mayor Kwame Kilpatrick is charged with perjury, misconduct and obstruction of justice for accusations that he tried to hide a long-term romantic relationship with his former chief of staff.

Emerging as an appointed state senator with a small private law office, Dann became the face of the Democrats' charge against a scandal over state investments that contributed to the Ohio GOP's devastating election losses in 2006, winning over a better known and more experienced Republican.

As Ohio's top law enforcer, he took on the nation's largest insurance brokerage, the mortgage lending industry, student loan providers, MySpace and the big three credit rating agencies, among others.

Edgar Simpson, Dann's policy chief, also was forced to resign. He knew about Gutierrez's history of policy violations and failed to address inappropriate behavior, investigators said.

Jennings denied wrongdoing. "I haven't done a thing except do my job. My conscience is absolutely clear," he said.

No phone listing for Simpson could be found.

The 26-year-old women who accused Gutierrez of harassment -- Cindy Stankoski and Vanessa Stout -- feel vindicated, their attorney Rex Elliott said.

"There are questions that go all the way to the top of that office about how the leader of that office allowed this environment to persist," he said.

Gutierrez declined comment and referred questions to his attorney, Sam Amendolara, who did not return messages seeking comment.

Stankoski said she went to the apartment shared by Dann, Gutierrez and Jennings for pizza and drinks. She said she fell asleep drunk at the condo and when she was awoke, her pants were unbuttoned and Gutierrez was lying next to her in his underwear.

When it was apparent Stankoski had too much to drink, arrangements should have been made to get her home, the investigation report said.

Stout alleged that Gutierrez repeatedly asked her for sex, suggesting she "owed" him for helping her land a state job.

The investigation also found that Gutierrez violated policies that prohibit driving under the influence of alcohol and drugs. The report detailed a case where Gutierrez is accused of was drinking with other employees while driving a state vehicle.

The matter is now under investigation by the State Highway Patrol.

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Associated Press writer Joe Milicia in Cleveland contributed to this report.