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CHICAGO — 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.

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.

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