EAST LANSING — Reimbursement payments made by a political nonprofit tied to former Michigan House Speaker Lee Chatfield were at the center of the opening testimony Wednesday in the preliminary exam hearing for Chatfield and his wife, both facing felony financial charges.

Lee Chatfield, a Republican from Levering, faces 13 embezzlement, conspiracy and larceny charges in 54B District Court in East Lansing. He is accused by the Michigan Attorney General’s Office and in court documents of improperly using public funds and private money raised through political nonprofits to pay for flights, meals at upscale restaurants and family vacations while he was in office. His wife, Stephanie Chatfield, also faces one count each of embezzlement and conspiracy. 

The most serious charge faced by Lee Chatfield, conducting a criminal enterprise, is a 20-year felony, ifconvicted. Charges against Stephanie Chatfield each carry a maximum sentence of 10 years in prison, if convicted. 

Both Lee and Stephanie Chatfield pleaded not guilty, through their attorneys, at an arraignment last year. 

Peninsula Fund reimbursements questioned

District Judge Molly Hennessey Greenwalt is presiding over the preliminary examination, a hearing held in criminal proceedings to determine whether there is enough evidence to send a case to a jury trial. The hearing is expected to last through Friday. 

Lee Chatfield, now 36, was Speaker of the Michigan House in 2019 and 2020. He was considered a strong fundraiser during his time in Michigan politics — including raising millions of dollars through certain nonprofits, sometimes called social welfare funds. 

The Attorney General’s Office alleges in court filings Lee Chatfield used the Peninsula Fund, a political nonprofit, to cover personal expenses, including a $132,000 credit card balance. In an affidavit filed in the case, an investigator with Attorney General Dana Nessel’s office wrote the credit card was used to pay for charges “clearly personal in nature,” including purchases at gift shops at Universal Studios in Orlando, Florida, and other expenses made during a family vacation in November 2020. 

Reimbursements from the Peninsula Fund were scrutinized in court Wednesday. Renae Moore, a senior compliance analyst with the Dykema law firm, specializing in political spending compliance, was the first called to testify. Moore, who testified she was the Peninsula Fund’s assistant secretary/treasurer, a position tasked with ensuring compliance with how the fund raised and spent money, said Dykema raised concerns about the types of reimbursement requests made by the Peninsula Fund. 

At one point, the firm provided a handbook to the Peninsula Fund over reimbursement policies, because “there were some expenses that were questionable in nature,” Moore told Assistant Attorney General Chris Kessel during the hearing. 

Moore said one such receipt submitted for reimbursement from the Peninsula Fund was from a strip club. The charge raised questions, she testified.   

“We were told it was a meeting expense and had to trust that it was correct,” she said.   

Copies of checks paid to an apartment complex where Lee Chatfield rented an apartment in Lansing during his time in office were also shown in court Wednesday. Prosecutors claim Lee Chatfield profited by having rent payments reimbursed by the Peninsula Fund. 

“Mr. Chatfield embezzled $6,225.00 from the Peninsula Fund by failing to reimburse the fund for the money that they spent on the apartment,” prosecutors wrote in a filing submitted to the court ahead of the preliminary exam.   

Moore said her main point of contact with the Peninsula Fund was Anne Minard, who was the fund’s president. Minard is a former staffer of Lee Chatfield. She and her husband, Rob Minard, another former aide of Lee Chatfield, were ordered in September to trial in the 30th Circuit Court over an alleged financial misconduct scheme.  

Mary Chartier, Lee Chatfield’s attorney, asked Moore Wednesday if she ever had concerns that would have prevented her or Dykema from working with a Chatfield-associated nonprofit, to which Moore said no. Moore also said she never directly raised any concerns about the Peninsula Fund’s spending to Lee Chatfield, mainly because, “we like to keep the legislators separate from the (nonprofit).”  

“If you wanted to reach out to him with a concern, you could have reached out to him with a concern, correct?” Chartier asked.  

Chartier also noted that Dykema worked with a nonprofit associated with Nessel. She asked Moore if that would be important to disclose. Moore replied it would be, but cautioned that attorney-client privilege shields some disclosures. 

Moore testified she worked on as many as 80 different committees and nonprofits at once in her role at Dykema.  

Moore’s testimony and cross examination wrapped up just before 11 a.m. Wednesday. Robert Menard, who led the investigation into the Chatfields’ finances for the Attorney General’s office, took the stand next.

Investigation began years ago

Michigan State Police started an investigation into Lee Chatfield in 2022 after his brother’s wife, Rebekah Chatfield, told Lansing police in late 2021 the former speaker sexually assaulted her for years, starting when she was approximately 15 years old. She said it 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 Michigan Attorney General’s Office began assisting state police with the probe, which expanded to investigate allegations of campaign finance violations.  

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

When Nessel announced charges against the Chatfields in April, she said the investigation into the sexual assault allegations was closed without charges. 

An investigation into Lee and Stephanie Chatfield’s financial conduct remains open, Danny Wimmer, press secretary for Nessel’s office, told the Detroit Free Press last week.  

In an emailed statement at the time the financial charges were made against the Chatfields, 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 at the time. 

The Attorney General’s Office also alleges in court filings Lee Chatfield wrongly sought mileage and travel reimbursements afforded to him as a member of the House for trips he didn’t take. 

Stephanie Chatfield is accused of improperly assisting in the embezzlement of Peninsula Fund money for personal use, according to a document filed in court by Nessel’s office. 

This story has been updated to add new information.

Contact Arpan Lobo: alobo@freepress.com