UPDATE 1-US businessman guilty in Azerbaijan oil case

* Guilty verdict against friend of prominent diplomat

* Jury decides he knew about bribes to Azeri officials (Adds quotes Bourke's lawyer and jury foreman)

By Grant McCool

NEW YORK, July 10 (Reuters) - An American businessman and friend of U.S. diplomat George Mitchell was found guilty on Friday of conspiracy to defraud the United States in an Azerbaijan oil venture bribery case.

Frederic Bourke, co-founder of handbag maker Dooney & Bourke, was found guilty by a Manhattan federal court jury of breaking the U.S. Foreign Corrupt Practices Act and of making false statements.

Bourke, 63, was found not guilty of conspiracy to commit money laundering, which carried a maximum sentence of 20 years imprisonment. Bourke faces a maximum of five years imprisonment plus $250,000 fines on each conviction. He is free on bail.

The charges against Bourke were made in 2005 in connection with an alleged conspiracy by another businessman, Czech national Viktor Kozeny, to bribe officials of Azerbaijan in a 1998 deal to buy a state-run oil company known as Socar.

Kozeny lives in the Bahamas and is fighting extradition.

Bourke's attorney John Cline said he is likely to appeal the two guilty verdicts.