Nayak, 57, of Oak Park, was arrested Wednesday morning at his home. He was indicted on 19-counts of fraud related to outpatient surgery centers he owns in Indiana and Illinois. He was charged with 10 counts of mail fraud, five counts of interstate travel in aid of racketeering, and four counts of filing false income tax returns for the years 2005-08.
Nayak is a former campaign fundraiser for imprisoned former Gov. Rod Blagojevich and Congressman Jesse Jackson Jr. His name came up during Blagojevich's corruption trials even though he was never charged nor called to testify.
During a 2008 meeting Chicago's 312 restaurant, Nayak allegedly promised to raise $1 million for Blagojevich if Jackson Jr. was appointed to the U.S. Senate to fill the seat left vacant by President Barack Obama.
Nayak was also identified by Jackson as the campaign contributor who paid for airline tickets for Giovana Huidobro, the married congressman's so-called "social acquaintance."
Jackson has denied any wrongdoing. He has not returned calls from ABC to comment on Nayak's arrest.
Neither Blagojevich nor Jackson was mentioned in the Wednesday court hearing. Nayak was released on a $10 million bond secured by property. Judge Maria Valdez ordered the defendant not to leave the region or attempt any trip to India, where Nayak was born.