By Ben Solis
Staff Writer
Posted: April 18, 2024 4:19 PM

Former House Speaker Lee Chatfield was known for enjoying the high life – vacationing abroad, drinking fancy wines and dining at the finest restaurants. Tuesday, Attorney General Dana Nessel charged him with illegally using his nonprofit, PACs and official government resources as his personal piggy bank to fund his jet set ways.

Chatfield became the second former Michigan House speaker in a year to be charged with felonies. He faces 13 charges against him related to the misuse of money in a landmark case that brings into focus the fundraising culture in the Capitol community where legislators, especially leadership, can command donations to a variety of funds from those whose access can depend on their financial support with little oversight.

Lee Chatfield's wife, Stephanie Chatfield, was charged with two felonies related to the scheme: embezzlement from a nonprofit organization and conspiracy to embezzle from a nonprofit organization, each 10-year felonies with similarly hefty fines.

The allegations that spurred the investigation into Chatfield's alleged criminal activity arose initially from sexual assault and criminal sexual conduct allegations lodged against him by his sister-in-law, Rebekah Chatfield. Nessel said her department thoroughly investigated the matter and that her team could not reach the burden of proof to bring charges.

Nessel added that the case involving her was now closed. Still, Nessel thanked Rebekah Chatfield for coming forward and said the financial charges would not be possible without her reporting of accusations against Lee Chatfield. The decision was disappointing to Rebekah Chatfield's attorney, Jamie White (see separate story).

The former speaker is charged with one count of conducting a criminal enterprise, a 20-year felony, as well as four counts of embezzlement from a non-profit organization, three counts of embezzlement by a public officer over $50, and one count of conspiracy to commit embezzlement from a non-profit organization (each 10-year felonies with hefty fines). Four additional embezzlement charges were filed against Lee Chatfield, each felonies punishable by five years in prison.

"Our investigation has uncovered evidence that Lee Chatfield used various different schemes to embezzle, steal, and convert both private and public monies to fund a lavish lifestyle that his state salary could not possibly afford," Nessel said. "While the entirety of our investigation is not yet completed, my department is moving forward with 13 charges against Lee Chatfield alleging rampant and flagrant misuse and misappropriation of political nonprofit funds while speaker of the House, including conducting a criminal enterprise."

The cases were filed in the 54-B District Court in East Lansing but were not available for public dissemination as of Tuesday afternoon and might not be available until Wednesday, court staff said.

Nessel said that the Chatfields would be permitted to turn themselves into law enforcement for booking purposes. Their arraignments are scheduled for 9 a.m. May 2.

At the crux of the charges: the alleged misuse of various funds operated by Chatfield and his inner circle. Nessel accused the Republican former speaker of using a nonprofit fund to cover more than $100,000 in personal credit card charges and taking thousands of dollars in travel stipend allowed through the Michigan House for trips never taken between his northern Michigan home and Lansing.

Chatfield also is charged with subleasing an apartment he rented using his Peninsula Fund but pocketing the sublease proceeds instead of repaying his nonprofit.

Nessel described Chatfield's conduct as "rampant and flagrant misuse of political nonprofit funds."

Mary Chartier of Chartier & Nyamfukudza, Chatfield's attorney, said she and her firm are prepared to fight the charges "every step of the way," noting that the "it took almost two and a half years for the attorney general's office to come up with charges against Mr. Chatfield regarding supposed financial offenses."

Charging documents and investigative affidavits provided by the Department of Attorney General detail the depth of the Chatfield's fundraising prowess and how they allegedly turned that skill into a scheme to enrich themselves with kickbacks, funds converted to personal use on vacations and luxury accommodations, and purchases for goods and services that did were not intended to further the mission of the funds under their control.

That includes funds allegedly illegally converted for his own personal use from the 501(c)(4) Peninsula Fund; his political action committees, The Chatfield Majority Fund and The Chatfield Majority Fund 2 and the state budget of the Michigan House of Representatives.

Nessel alleged further that Lee Chatfield used nonprofit funds to pay off personal credit card expenses, sought improper mileage reimbursements from the House of Representatives for district-to-Lansing travel that never occurred, implemented a check kickback scheme to move PAC money through staff and back to his pocket, and sublet an apartment, paid for by the Peninsula Fund, for his own profit.

Some of the trips paid for by the misuse of those funds included visits to Universal Studios in Orlando and then Miami, Florida, as well as trips to Las Vegas.

As for Stephanie Chatfield, Nessel alleged that she was aware of and monitored those transfers with the aim of assisting the conspiracy, which further enriched their family and friends. When asked why she was just charged with two counts instead of several, Nessel said those were the only ones they could prove her involvement at this time.

Nessel stressed that the investigation continues regarding alleged financial crimes. Nessel came under criticism after she charged two onetime Chatfield top aides, Rob and Anné Minard, following two years of investigation but didn't charge Chatfield. She insisted then the investigation remained active.

"We have definitely not ruled out charges against the Chatfields and many others," she said. "This is the beginning of the charging process for the former speaker."

During the news conference announcing the charges, Nessel was asked if there was any evidence found connecting donors to the Chatfield funds that resulted in misuse and abuse, and if those donors got anything back in return.

Nessel reiterated that the investigation on the financial side was ongoing, and that they were moving forward with what they could charge now.

The attorney general was also asked if there any other charges coming against sitting or former lawmakers.

Nessel again noted the ongoing nature of the investigation, but said they were not charging additional public officials in the probe at this time.

She did say, however, that her office has investigated similar public corruption issues like the investigation into Unlock Michigan, and her office filing charges against the Minards, close former associates of Chatfield's who also allegedly misused funds.

"We were able to conduct this investigation and sort of peek behind the curtain because of these very serious allegations made by Chatfield's sister-in-law," she said. "But generally speaking, this was an uncommon fact pattern. Will you normally have the sister-in-law of a legislator make allegations of sexual assault and financial improprieties? I haven't seen that very often, and it happened here. You don't know unless you have a legal reason to look … (and with) other elected officials, we just don't know."