The anonymous allegation against Chris Myers, a father-of-two, was posted on a website and included a photo of a man who appeared to be him, in his Calvin Klein underwear.
The person making the allegation claimed to be a prostitute.
The man also complained Chris Myers paid him $500 but didn’t fulfill promises of a car and other gifts. He said on the website that the broken promise was the reason he was taking his story public.
The website was taken down soon after becoming public.
Chris Myers, in an interview with a reporter for the Courier-Post newspaper in October, refused to comment on the allegations but didn’t deny them.
At a November township council meeting, Chris Myers denied the claims, calling the internet “a murky, anonymous place”.
Chris Myers’ resignation letter submitted to town officials Monday did not mention the scandal.
“My work commitments will not allow me to devote the time that is needed in the months ahead,” he wrote.
Some other council members have complained that the allegations against Chris Myers have gotten in the way of the business of Medford, a town of 23,000 residents about 20 miles east of Philadelphia.
Chris Myers missed one township council meeting and postponed another after the allegations surfaced.
He won the GOP nomination for a congressional seat in 2008 but lost the general election.
Chris Myers has been suspended as a vice president at technology manufacturer Lockheed Martin Corp.
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