Democratic party activist and fund-raiser Julie Lee was found guilty Friday on two counts of mail fraud and three counts of witness tampering in connection with campaign funds she solicited for former Secretary of State and Assemblyman Kevin Shelley.

Lee, of San Francisco, was found guilty by a jury in federal court in Sacramento a day after closing arguments.  The jury found her not guilty on two other counts of mail fraud.

She faces prison sentences of 20 years on each of the mail fraud convictions and 10 years on each of the witness tampering convictions, and will be sentenced on Sept. 23. Most expect she'll be sentenced concurrently.

The case stemmed from a $500,000 state grant - acquired with Shelley's help in the Assembly - for a nonprofit group Lee ran in Chinatown.

When funds from that grant went to two businessmen in 2000 and 2001, Lee directed each of the businessmen to make a total of $125,000 in donations to Shelley's ultimately successful campaign for Secretary of State in 2002.

That amount matched the money the men had received for their work with the nonprofit group.

Shelley, once a rising star among Democrats who was cleared of any crime in the case, resigned in 2005 after the story about the donations broke.

Prosecutors said Lee had essentially laundered public money into Shelley's account with the move. Lee's defense attorneys contended that the men had made legitimate campaign contributions.

Lee remains free until her sentencing, according to the U.S. Attorney's office. She still faces charges related to the case in San Francisco.

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