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Key Witness Testifies Against Chaka Fattah In Racketeering Conspiracy Trial

PHILADELPHIA (CBS) -- A key player in congressman Chaka Fattah's inner circle during his unsuccessful run for mayor in 2007 is on the witness stand, telling jurors how Fattah was behind securing what prosecutors call an illegal $1 million loan.

A political consultant for 35-years, Thomas Lindenfeld told jurors he was reluctant to join the Fattah campaign, because Fattah was one of the "least proficient" fundraisers in congress, and he knew it would take big money, to run for mayor.

But he told jurors Fattah "said he had ideas on how to deal with it," and at Fattah's urging, Lindenfeld arranged for the loan from Al Lord, the former CEO of the Sallie Mae lending agency.

He testified Lord offered to funnel the money through Lindenfeld's company. Lindenfeld quotes Fattah as saying "no problem," when told it would be a loan to be repaid by Fattah or his campaign.

Lindenfeld pleaded guilty to a single charge of wire fraud conspiracy. While he faces a maximum 20-years in prison, in exchange for his testimony, he hopes to get a more lenient sentence.

The defense claims Lindenfeld and former Fattah staffer Greg Naylor, who also pleaded guilty, where behind the scheme, not Fattah.

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