St. Paul City Attorney Sarah Grewing said Friday that she won't pursue criminal charges against former Minnesota Republican Party chairman Tony Sutton for fundraising irregularities. The matter has already led to fines against Sutton and the GOP. Gerwig wrote in a letter to The Associated Press that it would be hard to prove Sutton was willfully violating a state law.

Republican activists are set to pick a new chairman Saturday to replace Tony Sutton, who resigned earlier this month as the party's debt problems came to light. The three candidates pitched their plans for restoring the party's financial stability and public credibility at a forum on Thursday night.

Republican Tony Sutton's abrupt departure Friday night was announced via a note left on the social media network Twitter. Sutton says the past few months have taken a tremendous toll on him and his family.

Some insiders in the Republican Party of Minnesota have been saying the group does not have to pay back nearly half a million dollars in legal fees stemming from the gubernatorial recount, but Politics in Minnesota reports former party chairman Tony Sutton signed a deal obliging the party to pay the debt. Furthermore, he says he cannot recall telling other party officials about the agreement.

Just hours after Republican officials declared the party $2 million in debt, former party leader Tony Sutton released a statement on his Facebook page saying the numbers reflect a hard fought election and campaign cycle, but that Minnesota is better off because of it.

The state's Republican Party on Friday disclosed new financial information, including $415,211 in debt that had never been reported. Party officials say they've found no evidence that anything illegal occurred, though, as the Star Tribune reports, the undisclosed debt could result in new fines. The party's outstanding obligations now total $2 million, including $700,000 owed to lawyers involved in the recount.

State officials have opened an investigation following allegations that the Republican Party may have violated campaign finance rules. The Minnesota GOP is $2 million in debt. That includes $415,000 of debt that party officials reportedly failed to disclose. The Pioneer Press says the GOP could face federal penalties, as well.

Minnesota Public Radio reports Sutton was giving out hundreds of thousands of dollars to contractors and consultants with close ties to the party even as donations started to slow. Now, with the state GOP struggling under $2 million of debt, leaders are worried donors large and small will take their checkbooks elsewhere.