The wife of former Michigan House Speaker Lee Chatfield will avoid prison time after reaching a plea agreement with state prosecutors in the financial misconduct probe that has roiled the previously powerful House Republican’s political career.
Ingham County Circuit Judge Morgan Cole sentenced Stephanie Chatfield, 38, to six months probation along with 25 hours of community service and a $2,000 fine on July 20, according to Attorney General Dana Nessel’s Office.
Stephanie Chatfield reached an agreement in June to plead guilty to a single count of embezzlement of between $200-$1,000 from a nonprofit organization. Previously, she faced more two more serious charges of embezzlement that each carried maximum penalties of up to 10 years in prison, if convicted.
The charges were part of a broader probe after state prosecutors accused the Chatfields of misappropriating thousands of dollars from political nonprofits.
Lee Chatfield faces a September trial on 13 embezzlement and conspiracy charges in 30th Circuit Court. He has pleaded not guilty to all counts.
The most serious charge Lee Chatfield, 38, faces carries a maximum 20-year prison sentence if convicted.
State prosecutors have zeroed in on a series of 501(c)(4) nonprofit funds previously tied to Lee Chatfield during his time as a state lawmaker from 2014 to 2020. Testimony from government witnesses in previous hearings alleged the Chatfields spent the money raised by the nonprofits, intended for political spending, on personal items like dinners at upscale restaurants, family vacations, car washes and more.
His attorney, Mary Chartier, has previously argued in court that it was the responsibility of the law firm managing the nonprofit funds to ensure that any spending done by the Chatfields complied with state law.
Witness testimony from the preliminary exam stated that one nonprofit controlled by Lee Chatfield, the Peninsula Fund, paid off nearly the entirety of a $153,000 credit card balance. A forensic accountant hired by prosecutors testified many of the purchases on the card didn’t appear to line up with the Peninsula Fund’s stated goals.
For politicians, a 501(c)(4) fund can be advantageous because the organizations are subject to fewer public disclosure requirements and contribution limits than traditional candidate committees, allowing for greater fundraising and less scrutiny. The organizations are sometimes called social welfare funds. During his time as a lawmaker, Lee Chatfield raised millions of dollars through the funds, Chartier previously told reporters.
Stephanie Chatfield was the third individual tied to the case of the former Speaker to enter a plea agreement with Nessel’s office. Two former aides to Lee Chatfield, Anne and Rob Minard, both took plea deals with prosecutors last year and agreed to testify as government witnesses at Lee Chatfield’s trial. The Minards previously faced charges of embezzling from and defrauding political committees, including during Lee Chatfield’s time as Speaker. As part of their plea agreements, the Minards avoided jail time and were each sentenced to 36 months probation in December.
In Dec. 2021, Rebekah Chatfield, Lee Chatfield’s sister-in-law, told Lansing police she had been sexually assaulted by Lee Chatfield from the time she was 15 years old and a student at the northern Michigan religious school where Lee Chatfield taught. She also reported misuse of campaign funds at the time, according to her court testimony in the case.
Lee Chatfield has denied any sexual assault. Chartier previously said a yearslong consensual affair took place between Lee Chatfield and Rebekah Chatfield when both were adults.
Michigan State Police began investigating Lee Chatfield and were later joined by Nessel’s office in the investigation. When Nessel announced the financial charges against Lee and Stephanie Chatfield in April 2024, she said the investigation into the sexual assault allegations was closed without charges.
Lee Chatfield, a Republican from Levering, held the most powerful position in the Michigan House of Representatives when he was Speaker in 2019 and 2020.
You can reach Arpan Lobo at alobo@freepress.com
This article originally appeared on Detroit Free Press: Stephanie Chatfield avoids jail time in financial misconduct case
Reporting by Arpan Lobo, Detroit Free Press / Detroit Free Press
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By Arpan Lobo, Detroit Free Press | USA TODAY Network
