The second-ranking Republican in the US House of Representatives, Majority Leader Tom DeLay, was indicted today on a felony campaign-finance charge and temporarily stepped down from his post.
The powerful Republican with a reputation as a tough party enforcer, could face up to two years in prison if convicted on the charge handed up by the Travis County grand jury in the Texas state capital, Austin.
Mr DeLay was indicted on a single conspiracy charge tied to illegal fund-raising activities by Texans for a Republican Majority, or TRMPAC, a political action committee he created, the Travis County District Attorney's office said.
The indictment accuses Mr DeLay and two alleged co-conspirators, John Colyandro and Jim Ellis, of engaging in a scheme to launder $190,000 in corporate donations through the Republican National Committee for distribution to Republican candidates for the Texas Legislature.
Texas law generally prohibits corporate money from being used for campaign activities. Mr Delay denied any wrongdoing. House Republican rules require Mr DeLay to give up his leadership position because of the indictment, although he can remain in Congress.
Republicans had scrapped the indictment rule during the course of the Mr DeLay probe, but then reversed the move this year following a public outcry.
Mr DeLay, the second-ranking Republican in the US House of Representatives, said in a statement: "I have notified the speaker that I will temporarily step aside from my position as majority leader pursuant to rules of the House Republican Conference and the actions of the Travis County District Attorney today."
The indictment is the latest in a recent spate of ethical questions involving high ranking Republicans or Bush administration officials.
Last week, it was disclosed that Senate Majority Leader Bill Frist was under federal investigation for a stock sale.
Also, the top White House procurement official resigned days before his arrest last week on lying and obstruction charges in a probe of a 2002 golf trip he took, while serving in another administration post, with a Republican lobbyist.