Nessel alleges dark money scheme in 'Unlock Michigan' petition, announces charges

Former Michigan Senate Majority Leader Mike Shirkey won't face criminal liability on accusations of participating in a dark money scheme to solicit contributions for a successful petition effort to repeal the emergency powers Gov. Gretchen Whitmer used to issue orders during the COVID-19 pandemic, Michigan Attorney General Dana Nessel announced Wednesday.

But Nessel accused a pair of longtime Lansing operatives with years of political fundraising experience of enabling the alleged scheme and lying to government officials in a cover-up attempt. Heather Lombardini faces multiple criminal charges of violating Michigan campaign finance law by soliciting contributions for the petition drive utilizing two nonprofits tied to Shirkey in order to skirt disclosure requirements, Nessel said. Sandy Baxter — another political operative — was also charged with perjury on accusations of lying about her involvement in the dark money scheme, Nessel said.

Nessel announced the following charges against Lombardini:

• Two counts under the Campaign Finance Act for failing to file a statement of organization, punishable by a $1,000 misdemeanor fine

• One misdemeanor count under the Campaign Finance Act for failing to file a campaign statement, which is punishable by up to 90 days imprisonment

• One count of uttering and publishing, a felony punishable by up to 14 years imprisonment

Baxter faces one count of perjury, a 15-year felony, Nessel said.

In 2021, the GOP-controlled state Legislature approved the "Unlock Michigan" initiative, circumventing Whitmer's veto to repeal the Emergency Powers Act of 1945 on which Whitmer relied to put in place various restrictions aimed at curbing the spread of COVID-19.

About a year later, the Michigan Department of State referred a complaint alleging two nonprofits — Michigan! My Michigan! and Michigan Citizens for Fiscal Responsibility — violated state campaign finance law to Nessel's office. At the time, a lawyer representing the nonprofits maintained both groups followed the law. The complaint came from two former political rivals — ex-Michigan Democratic Party Chair Mark Brewer and retired Michigan Chamber of Commerce and GOP strategist Bob LaBrant — who teamed up to allege the Unlock Michigan petition drive violated the Michigan Campaign Finance Act. Were it not for LaBrant's complaint, the alleged violations could have gone undetected, Nessel said.

Soliciting funding on behalf of a petition drive like "Unlock Michigan" requires disclosure under the Michigan Campaign Finance Act, Nessel said. "Aside from being unethical, what makes these acts criminal is the intentional act of soliciting and receiving money explicitly through one organization with the express intention to support a cause that requires public disclosure of donors," Nessel said. In other words, those involved in the Unlock Michigan fundraising effort secretly raised money without the transparency required under the law, according to Nessel.

Shirkey won’t face criminal charges because he is not legally connected as a director to either of the two organizations allegedly used to finance the Unlock Michigan campaign. But Nessel said the investigation uncovered clear evidence that he "intentionally and directly solicited money on behalf of Unlock Michigan while directing donors to go to Michigan! My Michigan! and Michigan Citizens for Fiscal Responsibility." Unlike Shirkey, Nessel identified Lombardi as the treasurer of Michigan! My Michigan! and the president of Michigan Citizens for Fiscal Responsibility, making her a legal officer of both groups and criminally liable.

"While Mike Shirkey was Senate Majority Leader during these events and absolutely should have known better, political staff and consultants are what keeps Michigan's campaign fundraising machine moving regardless of who is in office," Nessel said. "Without these hired guns, these dark money operations would never exist."

Nessel used a news briefing Wednesday where she announced the criminal charges to double down on her calls for strengthening campaign finance laws to prevent abuses in the future. She called for changes including harsher penalties for campaign finance violations and new perjury and forgery violations under the Michigan Campaign Finance Act. "Ultimately, our campaign finance system is just fundamentally broken," Nessel said.

Before lawmakers had a chance to vote on the Unlock Michigan petition, Nessel announced an investigation that examined the tactics used by paid signature collectors. That investigation did not result in any criminal charges.

Unlock Michigan: Michigan Department of State wants AG Nessel to review 2 political nonprofits for possible crimes

The charges Nessel announced Wednesday come after criminal cases against former Republican legislative leaders and their staff. Two former staffers who worked for ex-House Speaker Lee Chatfield, R-Levering, face embezzlement and other criminal charges on accusations of misappropriating funds from multiple entities, including social welfare nonprofits and campaign committees. Last fall, former House Speaker Rick Johnson, R-LeRoy, was sentenced to four and half years in federal prison for accepting bribes in a marijuana corruption scheme.

Free Press staff writers Dave Boucher and Paul Egan contributed with previous reporting.

Contact Clara Hendrickson: chendrickson@freepress.com or 313-296-5743. Follow her on X, previously called Twitter, @clarajanehen.

This article originally appeared on Detroit Free Press: Nessel announces charges in 'Unlock Michigan' investigation