A former Obama fundraiser has been found guilty of corruption, a development the Republican party said raises serious concerns about Barack Obama’s fitness for the White House.
Antoin "Tony" Rezko (52), a Chicago real estate developer and one-time fundraiser for several politicians including Mr Obama, was found guilty of fraud, attempted bribery and money laundering.
Mr Obama figured only briefly in the trial and he had severed his connections with Rezko. But the Republican National Committee immediately issued a statement noting the verdict came right after Mr Obama came "wheezing over the finish line" to beat party rival Hillary Clinton.
"This is further proof that Obama's high-flying rhetoric is just that .... today's verdict and Obama's friendship with Rezko raise serious questions about whether he has the judgment to serve as president," it said.
A federal jury convicted Rezko of 16 of the 24 counts against him for using his influence over two Illinois government boards to extort millions of dollars in bribes and campaign donations. He will be sentenced in early September, about two months before the general election.
Rezko was found guilty of 12 counts of mail and wire fraud, two of attempted bribery and two of money laundering. The jury found him not guilty of three counts of wire fraud, one of attempted extortion and four of attempted bribery.
Prosecutors focused on Rezko's corrupting influence in the administration of Illinois' Democratic Governor Rod Blagojevich, eliciting testimony that Rezko demanded campaign contributions and bribes in exchange for jobs or state contracts. The defence presented no witnesses.
Some of those suspect campaign contributions went for Mr Obama's senate run and his presidential campaign has given away some $250,000 in donations it can trace to Rezko.
Mr Obama's name came up only peripherally during the two-month trial as a recipient of campaign donations generated by Rezko for his US Senate race in 2004.
Rezko had a close friendship with Mr Obama and the ties with the Syrian-born property developer and restaurant entrepreneur created some sparks in the Democratic primary contest. Rezko's role could resurface in the November contest against Republican Senator John McCain.
Mrs Clinton accused Mr Obama in a January debate of doing legal work for Rezko's "slum landlord business in inner city Chicago."
Mr Obama said he did some legal work for Rezko's real estate partners in the 1990s, but he regretted his dealings with Rezko after becoming aware of the government's investigation.
Mr Obama said Rezko had never asked him for any political favours, nor did he grant him any.
Critics said Mr Obama's relationship with Chicago powerbrokers, including Rezko, and his ties to the Reverend Jeremiah Wright, his fiery and controversial former Chicago pastor, raised questions about his judgment and his credibility at a time when he is touting a new approach to politics free from influence.
Mr Obama quit the church, Trinity United Church of Christ, after 16 years of membership in the aftermath of another inflammatory sermon delivered by a visiting priest and Obama supporter who mocked Mrs Clinton.