Former Michigan Democrat Party Treasurer Tracy Kornak Allegedly Caught Embezzling From an 87-Year-Old Brain-Damaged Woman — Why Is AG Dana Nessel Protecting Her?
Former Michigan Democrat Party Treasurer Tracy Kornak has been hauled into probate court this week amid allegations she embezzled substantial funds from an elderly, brain-damaged woman under her legal conservatorship, according to court filings and local reporting.
Kornak, an attorney who served on Michigan’s radical Attorney General Dana Nessel’s own transition team, was appointed as the legal guardian for a woman residing at “The Village of Heather Hills,” an assisted living facility.
Rather than protecting the ward, allegations suggest Kornak used the facility’s sensitive tax information to fraudulently bill an insurance company for nearly $50,000 in “care services” that were never authorized.
The director of the facility, Joe LeBlanc, blew the whistle on the operation, leading to a criminal investigation by the Attorney General’s office.
The Michigan Department of Attorney General’s Financial Crimes and Health Care Fraud divisions investigated the claims.
In 2023, the department announced that no criminal wrongdoing was found, citing a lack of a cooperating complainant and unsubstantiated claims.
In July 2025, the Michigan House Oversight Committee authorized subpoenas for records related to the Attorney General’s investigation into Kornak.
However, bombshell records obtained through FOIA requests tell a different story.
The AG’s office supposedly set up an “ethical firewall” to prevent Nessel from interfering. Emails reveal that Nessel allegedly shattered that wall, demanding updates on the case and pressuring staff to provide Kornak with documentation to clear her name, according to WHMI.
Charlie LeDuff from Michigan Enjoyer reported on Wednesday:
Traci Kornak, the former treasurer of the Michigan Democratic Party, was hauled into probate court this week, suspected of embezzling from her ward, a brain-damaged elderly woman.
[…]
The old woman died last April, and now the judge wants to know what happened to her money. Her condominium? Her insurance settlement from the car accident? Her trust? Her estate plan? Who made debit card purchases on the day of her death?
[…]
What began as a story about a simple insurance scam perpetrated by Kornak in the name of the old woman has morphed into a scandal implicating Gov. Gretchen Whitmer and threatening the impeachment of Dana Nessel.
Kornak was a suspected embezzler, and Whitmer and Nessel knew about the allegations. Nevertheless, they allowed her to continue in her political position as treasurer of the state Democratic Party.
In fact, Whitmer was planning to appoint Kornak to a judgeship as soon as the criminal investigation went away.
[…]
The Kent County Sheriff’s Office has completed its own two-year investigation into Kornak’s stewardship of the old woman’s financial affairs. Among its recommendations are charges of felony embezzlement, which carries a 20-year prison term. That report now sits on the desk of Chris Becker, the Kent County prosecutor, who is considering charges.
Most nauseating about this whole affair—beyond the alleged abuse of an elder who could not fend for herself —is that those in power knew all along. I called them. I shouted questions at them. I mocked them online, in print, and on TV.
Read more from Michigan Enjoyer.
Watch the video as Charlie LeDuff confronts the former Democrat treasurer:
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