June 5 (Bloomberg) -- Antoin Rezko, a former fundraiser for Democratic presidential candidate Barack Obama, was convicted for taking part in a scheme to extract kickbacks in exchange for influencing awards of state business in Illinois.

The jury of 10 women and two men returned the verdict in federal court in Chicago yesterday, a day after Obama mathematically clinched his party's nomination. The jurors started deliberating on May 13 after nine weeks of evidence.

Rezko, 52, a chain-restaurant investor and low income- housing developer, was accused of plotting with a Chicago-area businessman who served on Illinois pension plan and hospital construction boards to reap millions of dollars in payments from firms seeking state investments and contracts.

``Anyone who followed the trial over the last couple of months had to be appalled by the conduct that was involved,'' Chicago U.S. Attorney Patrick Fitzgerald said.

Rezko, who raised money for Obama's U.S. and Illinois senate campaigns, also collected more than $1.4 million for the state's governor, Democrat Rod Blagojevich. Some of the crimes for which he was found guilty carry sentences of as much as 20 years in prison, Fitzgerald said at a post-verdict press conference.

A resident of the Chicago suburb of Wilmette, Rezko was indicted in 2006. His sentencing was set for Sept. 3.

Acquitted of Extortion

The jury convicted Rezko of six counts of mail fraud, six counts of wire fraud, two counts of money laundering and two counts of abetting bribery. He was acquitted on eight counts, including a charge he tried to extort as much as $2 million from Lakeshore Entertainment Group founder and former Capri Capital principal Thomas Rosenberg, who testified against him at trial.

Alleged co-conspirator Stuart Levine pleaded guilty and served as the government's chief witness.

``He's obviously very disappointed. He feels strongly about his innocence as do we,'' said Rezko's lawyer, Joseph Duffy, who called the Chicago court ``a difficult environment in which to get a fair trail on allegations of public corruption.''

Duffy said his client would appeal the verdict. Rezko immediately surrendered to U.S. Marshals in the courtroom and was taken into custody.

Obama, 46, the junior U.S. senator for Illinois, was mentioned several times during the trial, though neither he nor Blagojevich were accused of any wrongdoing. Obama's campaign has said the candidate donated to charity about $160,000 in campaign contributions made or raised for him by Rezko.

Obama `Saddened'

Obama said he was saddened by the verdict.

``This isn't the Tony Rezko I knew, but now he has been convicted by a jury on multiple charges that once again shine a spotlight on the need for reform,'' Obama said in a statement.

``This is further proof that Obama's high-flying rhetoric is just that and in no way represents the kind of change our nation demands,'' Republican National Committee Chairman Robert ``Mike'' Duncan said in an e-mailed statement. The ``verdict and Obama's friendship with Rezko raise serious questions about whether he has the judgment to serve as president,'' Duncan said.

Obama spokesman Ben LaBolt, in a telephone interview today, said the campaign wouldn't respond to the Republican National Committee remark.

``This verdict doesn't change anything for the Obama campaign, except put to bed a storyline that gave McCain a potential talking point,'' Stephanie Cutter, an unaligned Democratic strategist who worked on Senator John Kerry's 2004 presidential campaign, said in a reference to this year's probable Republican nominee, U.S. Senator John McCain.

Obama's Mansion

From 1993 to 2004, Obama worked in several capacities for a Chicago law firm whose clients included Rezko.

In 2005, when the senator bought a mansion in Chicago's South Side neighborhood of Hyde Park, Rezko toured the property with him in advance of the $1.65 million purchase. Obama also paid $104,167 for one-sixth of an adjacent vacant parcel that Rezko's wife, Rita, bought for $625,000.

Rezko was under federal investigation at the time and was indicted 16 months later. Obama has said he made a ``boneheaded'' move in involving the Rezkos in the purchase.

Rezko, who held no official title within the Blagojevich administration, was among a handful of insiders who regularly attended the governor's strategy sessions, the governor's former Chief Counsel, Susan Lichtenstein, testified.

`Highest Levels'

Rezko had access to the ``highest levels'' of Blagojevich's administration and made recommendations to fill state board vacancies, Assistant U.S. Attorney Carrie Hamilton told the jury at the start of the trial. ``More often than not,'' she said, those recommended by Rezko were named to the boards.

Prosecutors alleged Rezko and Levine devised a ``pay-to- play'' system under which investment firms seeking to do business with the Illinois Teachers Retirement System, where Levine served as a board member, would have to pay unearned finders' fees to people designated by Levine and Rezko.

Fitzgerald addressed the pay-to-play issue at yesterday's press conference.

``I hope most people step back and say when you do all that stuff, it's going to come back and bite you in a serious way,'' the U.S. Attorney said. ``If the morals don't get to them, then I hope the fear of going to jail does.''

Fitzgerald declined to discuss the possibility of charges against the governor or anybody else. Still, he called his ``Operation Board Games'' probe a ``continuing investigation.''

`Deeply Sad'

``Tony Rezko is a friend and was a supporter,'' Blagojevich said in a statement issued yesterday in which he added that he was ``deeply sad'' about the trial outcome.

``I respect the decision made by the jury,'' he said. ``As for me I will continue to get up every single day to work as hard as I possibly can for the people.''

During 2003 and 2004, the pension fund controlled more than $20 billion in investment capital, according to the government.

Levine, who pleaded guilty to fraud and money laundering, testified for 19 days during which he admitted drug use, lies and theft. Levine said he plotted with Rezko to profit from their positions of power.

The case is U.S. v. Levine, 05cr691, U.S. District Court, Northern District of Illinois, Eastern Division (Chicago).

To contact the reporter on this story: Andrew Harris in Chicago federal court at aharris16@bloomberg.net

Last Updated: June 5, 2008 17:05 EDT