Federal authorities are investigating the political fundraising activities of an Illinois businessman who owns several surgery centers on Chicago???s North Side as part of the wider investigation into Illinois Gov. Rod Blagojevich???s alleged efforts to sell President-elect Barack Obama???s Senate seat.

According to the New York Times, officials are investigating whether Raghuveer Nayak offered to raise at least $1 million for Mr. Blagojevich in exchange for his appointment of Illinois Rep. Jesse Jackson Jr. to the Senate seat vacated by Mr. Obama.

Mr. Jackson has denied knowing about or authorizing any efforts by his associates or supporters to raise money for the governor in exchange for a Senate appointment. Mr. Jackson "has talked to [Mr. Nayak] about the Senate seat and he has mentioned his interest. But he never asked him to do anything," the congressman???s spokesman, Rick Bryant, told the Chicago Tribune.

Mr. Nayak is a major fundraiser and supporter of Mr. Blagojevich, a supporter and family friend of Mr. Jackson and a past contributor to Mr. Obama???s state and national campaigns. According to the Times, Mr. Nayak???s critics "have suggested he might have used his political connections in securing locations for some of" his surgery centers in Illinois.

—Irene Tsikitas