BAM:

The Austin appeals court erred in deciding that the state’s money-laundering statute – used to prosecute associates of former U.S. House Majority Leader Tom DeLay – did not apply to transfers made via checks, the Texas Court of Criminal Appeals ruled today.

The court’s 9-0 decision also upheld the state’s election laws prohibiting corporations from making political contributions to candidates. DeLay’s associates – John Colyandro and Jim Ellis – had challenged the law as an unconstitutional infringement on First Amendment rights.

In 2002, the Public Integrity Section of the Travis County District charged Colyandro – working on behalf of Texans for a Republican Majority PAC – with accepting political contributions from corporations.

Colyandro and Ellis also were charged with money laundering by transferring $190,000 in corporate contributions to the Republican National Committee by a check, with a similar amount later returned to the state organization.