Ex-Michigan house speaker Lee Chatfield and wife are charged with embezzlement and misusing political funds: Alleged financial crimes were only found while probing claims he sexually assaulted his sister-in-law

Prosecutors have charged the former leader of the Michigan House and his wife for a slew of financial crimes - alleging they milked political accounts for hundreds of thousands of dollars while the lawmaker was raising millions from his powerful post.

The investigation into Republican Lee Chatfield only began in 2022 when his sister-in-law Rebekah Chatfield 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 which uncovered these alleged financial crimes.

Attorney General Dana Nessel said there was insufficient evidence to charge Lee 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.

Prosecutors charged the former leader of the Michigan House Lee Chatfield and his wife Stephanie with financial crimes, alleging they milked political accounts for over half a million dollars

Former Michigan House Speaker Lee Chatfield and his wife, Stephanie, face charges for financial crimes but the investigation initially focused on sexual abuse allegations against his sister-in-law

Former Michigan House Speaker Lee Chatfield and his wife face charges for financial crimes but the investigation initially focused sexual abuse allegations

Lee Chatfield misused various political funds, including his Peninsula Fund, which was not required to report the names of donors and served as an 'unregulated slush fund,' AG Nessel said.

The operation was a family affair, as wife Stephanie Chatfield monitored her husband's credit card balance and paid it off with cash from the Peninsula Fund, to the tune of $132,000 over a 14-month period, Nessel said.

Stephanie Chatfield has also been charged in connection with the corruption allegations. 

The couple reportedly illegally made $525,000 in the years between 2018 and 2020. 

Lee Chatfield's schemes 'aimed to embezzle, steal, and convert both private and public monies to fund a lavish lifestyle.' 

In another example, Nessel said Lee Chatfield's brother cashed a $5,000 check from a political fund in 2020 and returned $3,500 to the lawmaker ahead of a vacation, Nessel said.

Lee Chatfield's various political funds took in more than $5 million over six years, including more than $2 million in 2020, which was his last year as speaker, the attorney general said.

'To call him, as many have, a prodigious fundraiser would not be an exaggeration,' Nessel said.

Prosecutors accuse Chatfield of misusing political funds for personal expenses, including $132,000 from a fund his wife managed

Lee Chatfield's schemes 'aimed to embezzle, steal, and convert both private and public monies to fund a lavish lifestyle' the Attorney General stated

The investigation into Lee Chatfield only began in 2022 when his sister-in-law Rebekah Chatfield publicly said he had sexually assaulted her when she was just 15-years-old

Rebekah has been particularly vocal about how she was a victim of abuse posting videos to TikTok and statements to Instagram

Lee Chatfield faces 13 charges, including conducting a criminal enterprise, which carries a maximum prison sentence of 20 years, and embezzlement. 

Chatfield allegations into his financial misdoings only came about after allegations of child abuse from his sister-in-law were raised. 

She accused him of sexually assaulting her starting when she was 15 years old. The accusations of abuse go back 12 years when she was attending Northern Michigan Baptist Bible Church.

Chatfield was a teacher, a men's soccer coach and the athletic director during his time there. She said the abuse continued until July of 2021.

A criminal complaint was filed with the Lansing Police Department and the investigation was turned over to Michigan State Police which then expanded the case. 

The lawyer for sister-in-law Rebekah Chatfield released a statement sharing her disappointment at the lack of charges in the sexual assault case. 

'While it is positive to learn that [Lee] Chatfield will face charges for his political misdeeds, I am deeply shocked and appalled by the Attorney General's decision today, which fails to hold the former Speaker of the House accountable for the most grotesque and obscene of his crimes: the sexual assault of my client Rebekah Chatfield, when she was still a child. 

'I spoke to Rebekah this morning, and she was shattered to learn that her abuser has continued to escape justice for his sexual crimes. For her, today's news was a crushing blow. To say she was deeply disappointed to learn that the man who sexually abused her as a child will not be held accountable for that act is a serious understatement,' the statement went on.

'It is crucial that we continue to investigate this matter, as there may be more Chatfield victims whose stories have yet to be heard. The Attorney General's office has failed in its duty to prosecute the worst of his crimes, and the investigation was flawed from the outset.'

Attorney General Dana Nessel said there was insufficient evidence to charge Lee Chatfield based on Rebekah Chatfield's allegations, though she praised her courage in stepping forward 

Rebekah Chatfield even posted a picture of her family in which brother-in-law, Lee Chatfield, can be seen peeking out from behind her husband Aaron

Rebekah Chatfield with husband Aaron Chatfield. She is the sister-in-law of Michigan House Speaker Lee Chatfield and has accused him of sexually assaulting her, starting when she was a teenage student at the Christian school where he taught

Rebekah has been particularly vocal about how she was a victim of abuse posting videos to TikTok and statements to Instagram. 

'Reclaiming my life one day at a time after 10+ years of sexual, psychological, and emotional abuse,' reads her bio. 

Lee Chatfield's attorney, Mary Chartier, has said she will fight the charges 'each and every step of the way.'

'It took almost 2½ years for the AG's office to come up with charges. It's going to be pretty flimsy if it took that long,' Chartier said.

Stephanie Chatfield was charged with embezzlement. 

Nessel said there has been a proliferation of 'dark money' political funds. She said the Peninsula Fund was organized under federal law as a tax-exempt 'social welfare organization.'

'The Michigan Campaign Finance Act is effectively toothless, useless and utterly worthless as a deterrent to these crimes,' she said.

'The misuse of social welfare funds is not a new practice in Lansing. And while Lee Chatfield may have exploited the system a little bit more than others, no one political party alone has perverted or abused it,' she said.

Separately, there was a renewed call Tuesday to expand financial disclosure laws in Michigan.

'We won´t give up on seeking the type of anti-corruption laws that this state needs that most other states have,' Secretary of State Jocelyn Benson, a Democrat, said. 'These charges really underscore the real necessity to more people in Lansing than ever before.'

Two people who were top aides to Lee 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.