LANSING, Mich. (AP) — Prosecutors charged the former leader of the Michigan House and his wife with financial crimes Tuesday, alleging they milked political accounts for personal travel, housing and other benefits while the Republican lawmaker held the powerful post.
Lee Chatfield misused his multimillion-dollar Peninsula Fund, which was not required to report the names of donors and served as an “unregulated slush fund,” Attorney General Dana Nessel said.
“The misuse of social welfare funds is not a new practice in Lansing,” Nessel, a Democrat, told reporters. “No one political party has abused it.”
Chatfield faces 13 charges, including conducting a criminal enterprise, which carries a maximum prison sentence of 20 years.
The investigation began in 2022 when Chatfield's sister-in-law publicly said he had sexually assaulted her. He has denied the allegations and said they had a consensual affair. Investigators eventually expanded the case beyond those claims.
Nessel said there was insufficient evidence to charge Chatfield based on Rebekah Chatfield's allegations, though she praised her courage in stepping forward.
“Were it not for her we likely wouldn't be here today,” the attorney general said.
Chatfield's attorney, Mary Chartier, said she'll fight the charges "each and every step of the way.”
“It took almost 2 1/2 years for the AG’s office to come up with charges. It’s going to be pretty flimsy if it took that long,” she said.
Chatfield's wife, Stephanie Chatfield, also faces charges. The identity of her lawyer was not immediately known.
Two people who were top aides to Chatfield when he ran the House were charged last year with crimes, including embezzlement from nonprofit funds created for political purposes. Rob and Anne Minard have pleaded not guilty.
Watch Nessel's full announcement below:
Secretary of State Jocelyn Benson released the following statement in response to Tuesday's announcement:
"Today, Attorney General Dana Nessel announced serious felony charges against former Michigan House Speaker Lee Chatfield and his wife, Stephanie.
"I’m grateful to the Attorney General, her staff, and the law enforcement team for their meticulous investigation into the allegations against the former Speaker. It is alarming to me that, because Michigan’s disclosure, ethics, and transparency laws are so weak, the evidence that led to today’s criminal charges was only discovered as the result of separate allegations made by Rebekah Chatfield.
"The fact that the alleged financial crimes, including the egregious and blatant embezzlement of taxpayer dollars and nonprofit funds for personal gain and enrichment, were able to go undetected for so long underscores a failure of our current laws to prohibit corruption in our state government.
"As I read through the charges and outrageous revelations surrounding this case, what’s clear to me is that this culture of corruption must end. Our citizens deserve better than this.
"Michigan is consistently ranked dead last among all states for our transparency and ethics laws. A glimmer of hope today is found in the fact that lawmakers in the state House, the very chamber that former Speaker Chatfield used to oversee, have introduced legislation to begin addressing these and many other gaps in our current anti-corruption laws.
"The Attorney General and I will be jointly testifying in support of some of these proposals before the State House Ethics Committee on Thursday morning. I hope we can see their swift passage by leaders in both chambers in the months ahead."
READ MORE: Questions swirl over how ex-Michigan House Speaker Lee Chatfield used PAC funds
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