A federal judge has dismissed a libel case against a homosexual who claimed Barack Obama’s 2008 campaign paid to rig a polygraph test regarding his sensational charge that he had sex and used drugs with the future president.

Larry Sinclair – who claims he twice engaged in sexual activity and used cocaine with Obama in 1999 when Obama was an Illinois state senator – was accused by Internet publisher Daniel Parisi of making false and damaging statements that led to the demise of Parisi’s porn website, Whitehouse.com, in 2008.

The alleged defamation did not center on Sinclair’s charges of sex and drugs with Obama but on Sinclair’s claim in his 2009 book that the Obama campaign and top adviser David Axelrod had agreed to pay Parisi $750,000 to rig the results of a polygraph test.

Parisi failed to present any evidence that Sinclair’s claim about Axelrod and the Obama campaign was false, wrote U.S. District Court Judge Richard J. Leon in his Feb. 28 opinion dismissing the case.

The judge, however, said Parisi failed to show Sinclair had published any knowingly false statements and concluded that he had taken appropriate steps to verify the information before publishing it.

Sinclair’s source of his allegation against Parisi and the Obama campaign was an anonymous phone call, but he tried to confirm the information with Parisi, who refused to respond, Leon states in his opinion. Also, a Chicago Tribune reporter contacted the tipster and affirmed Sinclair’s statement, the judge said.

Sinclair represented himself in court while Parisi was represented by Patton Boggs, one of the most expensive, prestigious and politically connected law firms in the nation’s capital.