Barack Obama Gives Money to Charity After Senate Donor's Indictment

Barack Obama is getting rid of an old $5,000 campaign donation that was given to him by an Illinois businessman who was indicted this week.

The money was donated to Obama's U.S. Senate campaign in 2003 by Abdelhamid "Al" Chaib of LaGrange Park, Ill. Chaib was indicted Thursday on federal charges of taking part in a scheme to fraudulently obtain a $3.4 million loan.

"In light of this week's news reports, we felt more comfortable donating those contributions to charity," Obama spokesman Ben LaBolt said Friday.

The Democratic presidential candidate's campaign is dividing the money between two cancer charities, Little Heroes and the Lynn Sage Cancer Foundation.

Previously, Obama has given charities $34,500 that he received in donations from other people linked to the activities that produced the Chaib indictment.

Federal prosecutors allege that an Obama supporter named Antoin "Tony" Rezko has participated in several illegal activities, including a scheme with Chaib to get a loan through false pretenses and use the money to buy a pizza business.

Chaib was executive director of the Illinois Finance Authority at the time.

Rezko, in addition to being a political supporter, bought a piece of property next to Obama's Chicago home and then sold Obama a section, giving the senator a larger yard.

Obama has described the transaction as a "boneheaded" mistake because of the way it looked. But he says it was legal and that he paid a more-than-fair price for the land.