Ex-Giuliani aide Kerik faces U.S. corruption charges

By Christine Kearney

WHITE PLAINS, N.Y. (Reuters) - Former New York police commissioner Bernard Kerik pleaded not guilty to federal corruption charges on Friday in a case that could further embarrass friend and one-time boss Rudy Giuliani as he campaigns for president.

Kerik, 52, faces charges including lying to White House officials, tax evasion and receiving benefits from a company suspected of links to organized crime. He was released on $500,000 bail and defense lawyer Kenneth Breen said he will move to dismiss major parts of the indictment.

"This is a battle I'm going to fight," Kerik said outside the federal courthouse in White Plains, just north of New York City. "My life has been marked by challenge."

The charges also include lying to investigators who were looking into his personal finances and business dealings and hiding more than $500,000 in income, much of it gifts from firms trying to do business with the city.

The 16-count indictment does not help Giuliani, the former New York City mayor who polls say leads the race for the Republican nomination in the 2008 U.S. presidential election.

Kerik stood by Giuliani's side on worldwide television following the Sept. 11 attacks and the two became business partners after Giuliani's term ended.

Giuliani was campaigning on Friday in Nevada and his campaign did not immediately return calls seeking comment on Kerik.

Kerik, a former detective, was Giuliani's driver who later became head of the city jails and, in 2000 and 2001, the head of the largest police department in the United States. Prosecutors allege he conducted the illegal business while in charge of the jails and concealed it while he was the top cop.