Former House Speaker Chatfield, his wife plead not guilty to embezzlement charges

East Lansing — Former Michigan House Speaker Lee Chatfield and his wife, Stephanie Chatfield, pleaded not guilty Thursday to criminal charges brought by the Attorney General's office with one of the defense lawyers vowing to fight allegations the Chatfields embezzled from a nonprofit organization.

The Chatfields appeared over Zoom and said little during their arraignment in Ingham County District Court, the first court hearing they've participated in since Attorney General Dana Nessel unveiled the charges against them on April 16.

Lee Chatfield, 35, of Levering held the top position in the state House for two years, 2019 and 2020. He departed the Legislature because of term limits at the end of 2020.

His charges have ignited a debate in the state Legislature over whether Lansing needs new ethics and transparency standards to combat officeholders' ability to collect and spend money in secret through nonprofit groups. Lee Chatfield's main nonprofit account, the Peninsula Fund, reported raising $1.3 million from donors whose names didn't have to be disclosed during his two years as speaker.

However, Mary Chartier, Lee Chatfield's lawyer, said her client had been "wrongfully maligned" and had faced what she described as speculation, rumor, innuendo and false claims.

"After two and a half years of being falsely accused, he is looking forward to his day in court and fighting this," Chartier said at one point during the Thursday morning hearing.

Nessel's investigation into Lee Chatfield began in January 2022 after his sister-in-law, Rebekah Chatfield, accused him of sexual assaulting her. Nessel's office declined to bring charges on those allegations.

Lee and Stephanie Chatfield sat at a table as they appeared over Zoom on Thursday morning. Asked by Judge Molly Hennessey Greenwalt if he understood the charges against him and the potential punishment, Lee Chatfield, who was once considered a rising star in Republican politics, replied, "Yes."

Among the 13 charges Lee Chatfield is facing is one count of conducting a criminal enterprise, a felony that would bring up to 20 years behind bars.

William Rollstin, an assistant attorney general, described it as a "serious offense" in his remarks.

Lee Chatfield got kickbacks from his associates and used $132,000 from the Peninsula Fund, which was supposed to be focused on promoting social welfare, to pay off his personal Chase credit card, Nessel has alleged.

More:In Lansing, Michigan lawmakers face reckoning on their secret fundraising

Greenwalt set a $100,000 personal recognizance bond for Lee Chatfield and a $15,000 personal recognizance bond for Stephanie Chatfield.

Stephanie Chatfield, 36, is charged with conspiracy to commit embezzlement from a nonprofit organization and embezzlement from a nonprofit organization. Each count would carry a maximum term of 10 years in prison.

The couple apparently participated in Thursday's video arraignment from Kentucky after Greenwalt approved a travel request from them earlier in the week.

The Chatfields will "likely" attend Saturday's Kentucky Derby and Lee Chatfield has meetings with potential clients for his "consulting" business there, Chartier said.

Stephanie Chatfield is employed as a teacher, her lawyer said.

Greenwalt is requiring the Chatfields to turn over their passports after they return to Michigan next week.

Their preliminary examinations, in which the judge will decide whether prosecutors have presented enough evidence for the charges to go to trial, is tentatively scheduled to take place June 13.

cmauger@detroitnews.com

Staff Writer Beth LeBlanc contributed.