Another hassle for Illinois Senate candidate

[March 13, 2010]  CHICAGO (AP) -- The Illinois Democrat running for President Barack Obama's old Senate seat faced a new political hassle after one of his major campaign contributors was arrested on charges of defrauding banks by writing bad checks.

Restaurant owner Nick Giannis and two others were accused in the $2 million scheme that included writing bad checks from accounts at the Chicago bank owned by the family of first-term Illinois state treasurer Alexi Giannoulias.

It was not immediately known whether Giannis had an attorney. He was arrested Thursday near Detroit while trying to flee to Canada and is awaiting extradition.

Giannis has donated $110,000 to Giannoulias' state campaign fund and $4,800 to his Senate bid. Giannoulias has said he would donate the money to charity.

Prosecutors have not accused Giannoulias' family bank of wrongdoing. But the bank has been a source of political trouble for Giannoulias, who once was an executive there. It is in financial trouble because of bad loans, and Giannoulias says it could be nearing collapse.

Republicans have been portraying Giannoulias as a failed businessman, citing the bank's financial woes and his involvement in loans to a convicted bookmaker.

Giannoulias' Republican opponent, U.S. Rep. Mark Kirk, said Thursday the fraud charges are part of a "disturbing pattern" of reckless business relationships and questionable banking practices by Giannoulias.

[Associated Press]

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