The dad-of-two was allegedly exposed after being filmed in an apparent late-night meeting with two eastern European sex workers last week.
Mr Vaz, 59, has since stepped down as the head of a Home Affairs Select Committee tasked with cracking down on sex workers and drugs.
The shocking clip – revealed by the Sunday Mirror – was reportedly filmed eight days ago.
The powerful politician has yet to answer allegations contained in the video.
And Mr Vaz is yet to stand down from his powerful role on the Home Affairs select committee following the film.
But now it is being claimed his charity, which was set up to promote diabetes, is linked to the scandal.
According to reports, bank statements belonging to one of the male prostitutes show two payments of £150 each were received from a man linked to Silver Star.
In the video, a man – claimed to be Mr Vaz – can allegedly be heard talking about getting cocaine and having sex with men without a condom.
He discusses how to supply the escorts with cocaine before discussing a previous romp with a male escort.
The man can be heard in muffled speech, saying: "How much is it going to be? Oh he wants someone to go give it to him."
It is hard to make out the entire conversation, but the man can clearly be heard describing how he had unprotected sex with another escort, saying: "He was OK. He forgot the condom though.
"I had to f*** him without a condom.”
The man then repeatedly asks the men to invite an unidentified Romanian man to come over.
Mr Vaz has since apologised and said he will temporarily step aside from his role in the Parliamentary Committee as he consults with his lawyers and the members of the committee.
In a statement, Mr Vaz said: "I am genuinely sorry for the hurt and distress that has been caused by my actions, in particular to my wife and children.
"I will be informing the Committee on Tuesday of my intention to stand aside from chairing the sessions of the Committee with immediate effect."
He added: "I have referred these allegations to my solicitor Mark Stephens, of Howard Kennedy, who will consider them carefully and advise me on what is published."
A Labour Party spokesman said: "Keith Vaz has issued a statement on this matter. As with all departmental select committees, Keith was elected to the chair of the Home Affairs Select Committee by the House of Commons, and his position is a matter for him and the House."
Daily Star Online has contacted Mr Vaz's representatives for comment.
