Another Corrupt Politician Busted

Tuckerfan · Apr 16, 2024

Former MI House Speaker.

Ex-Michigan House Speaker Lee Chatfield, wife charged with embezzlement, conspiracy

LANSING — Former Michigan House Speaker Lee Chatfield embezzled public and private funds to support a lavish lifestyle of fine dining, ritzy hotels and trips to exotic locations, Attorney General Dana Nessel said Tuesday in announcing felony charges against the former GOP leader and his wife, Stephanie.

Chatfield, 35, who held a powerful post as the majority party leader at the state Capitol throughout 2019 and 2020, is charged in East Lansing district court with 13 embezzlement, conspiracy and larceny counts, Nessel said at a news conference.

The most serious charge, conducting a criminal enterprise, is a 20-year felony. Only Lee Chatfield is charged with that crime.

Chatfield's wife, who allegedly assisted with improperly charging personal family expenses to a nonprofit organization called the Peninsula Fund, also faces one count each of embezzlement and conspiracy, Nessel said. Each charge is a 10-year felony.

Though an investigation into financial crimes continues, Nessel said an investigation into allegations of sexual assault against a family member has been closed without charges.

"We did an extensive investigation and we found that we could not prove a criminal sexual assault charge beyond a reasonable doubt," Nessel said. She would not give more details, citing the fact that Chatfield is now a criminal defendant facing charges brought by her office.

On the financial crimes, Nessel said Chatfield improperly charged a wide range of personal expenses to public and political funds, including a family vacation to Universal Studios in Orlando, Florida, in which they charged hotels, meals, souvenirs, and the purchase of luxury goods to the fund.

Nessel, a Democrat, said Lee Chatfield also used a "check kickback" scheme, in which he wrote checks from funds to an associate or relative and then took back cash to spend on personal expenses. The purpose of the checks was inaccurately reported, such as payment for work done, Nessel said. One of those schemes was used to provide cash spending money for a trip, paid for by the Peninsula Fund, that Lee Chatfield and others took to the Bahamas in 2018, she said. Chatfield organized the Peninsula Fund in 2017, she said.

Another "scheme" involved the subletting of an apartment that was paid for by the Peninsula Fund, to benefit Chatfield personally, Nessel said.

Chatfield and his wife used the Peninsula Fund to pay off all $132,000 in charges to Chatfield's personal credit card over a 14-month period, she said.

Chatfield and his wife have not been arrested and will be allowed to report for arraignment and processing at a future date, through their attorneys, Nessel said.

In an emailed statement, Lee Chatfield’s attorney Mary Chartier, called the charges politically motivated, and said: “We are prepared to fight them each and every step of the way.”

“While we don’t represent Mrs. Chatfield, it appears that she is being used as a pawn in a political prosecution, and we’re confident that her attorney will effectively fight these charges in court on her behalf,” Chartier said.

Chartier did applaud the investigation into the sexual assault allegations being closed, calling the accusations “meritless.” Chartier said Lee Chatfield would be arraigned and processed in “due course.”

Two of Chatfield's top aides also face charges for allegedly conducting a criminal enterprise while working for Chatfield that included embezzling funds from nonprofits and campaign committees. Nessel brought those charges in December.

Donors to nonprofits such as the Peninsula Fund, which are known as "social welfare" organizations but which Nessel said are commonly misused as "political slush funds," don't have to be publicly disclosed. Nessel said some of the donors' names will be disclosed as the case against Chatfield is prosecuted. She did not give a direct answer when asked whether any of the donors might face criminal charges.

"There are different ways to buy influence, and some are legally codified," said Nessel, who, at another point in the news conference, said Michigan, to some extent, endures "legal types of bribery," due to weak campaign finance laws.

About two years ago, the Michigan State Police launched an investigation into Chatfield after his brother's wife, Rebekah Chatfield, told local law enforcement in late 2021 the former speaker sexually assaulted her for years, starting when she was approximately 15 years old. She said the assaults began when she was a student and Lee Chatfield was a teacher at a small private religious school run by his father in northern Michigan. The Attorney General's Office began assisting state police with the probe, which expanded to investigate allegations of campaign finance violations.

Chartier said previously that Chatfield had a consensual affair with his sister-in-law but did not commit any crimes.

Jaime White, an Okemos-based attorney who has represented Rebekah Chatfield since she first came forward with allegations of sexual assault by her brother-in-law Lee Chatfield in 2022, said Rebekah was “extremely distressed” with Nessel’s announcement that Lee Chatfield would not face any charges related to alleged sexual assault.

“This decision by Attorney General Dana Nessel to not get this woman her day in court, I think it sets Michigan back a long ways,” White told the Free Press on Tuesday.

But it was the sexual assault investigation by Michigan State Police that eventually expanded into the financial crimes investigation that led to criminal charges.

Funds controlled by Chatfield took in more than $5 million in six years and more than $2 million during his last year as speaker, Nessel said.

When Democratic lawmakers were in the minority in the state House last legislative session, they made repeated calls to set up a special committee to launch an internal review of Chatfield's conduct in office. Toward the end of 2022, then-House Speaker Jason Wentworth, R-Farwell, said his team tried to pursue a third-party investigation of Chatfield but was told by Nessel's office to hit pause. Former Minority Leader Donna Lasinski, D-Scio Township, said there was still more Republican lawmakers could have done and that GOP leaders stymied a possible probe into ethical violations by Chatfield.

Chatfield is also accused of embezzling public funds by overcharging for mileage reimbursements available to state lawmakers for trips between their home districts and the Capitol, Nessel said. Chatfield charged more than 20,000 miles for trips he never took, Nessel said. In many cases, he was out of the state or out of the country on other trips when he reported to the Legislature he was driving between his home and his district, she said.

Nessel took the opportunity to call for tougher campaign finance and nonprofit laws. "This is the predictable product of the dark money culture we have here in Lansing," she said.
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Tuckerfan · Apr 16, 2024

Oh, and wait until you hear what his father did:

Father of ex-House speaker did not report child abuse allegations

tafkats · Apr 16, 2024

Will these drag queens never stop?

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Another Corrupt Politician Busted

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