SAN FRANCISCO — A political fund-raiser has been charged for allegedly diverting $125,000 from a taxpayer-funded grant into the campaign coffers of former Secretary of State Kevin Shelley, authorities said Friday.

Julie Lee, 58, who was one of Shelley's top fund-raisers, was charged with eight felony counts, including four counts of grand theft, according to Attorney General Bill Lockyer and San Francisco District Attorney Kamala Harris.

She also faces embezzlement, forgery and preparing false documentary evidence charges, along with two misdemeanors. She faces more than 14 years in prison if convicted.

"The acts perpetuated by Julie Lee were a fraud on the state, its taxpayers, the people of San Francisco and her clients," Lockyer said in a statement.

Lee's attorney, Steven Gruel, said she'll plead not guilty at an arraignment Monday. She surrendered Friday and was released on $250,000 bail.

"We intend to fight and contest these charges," Gruel said.

A native of Shanghai who became a political power broker in the city's Chinese American community, Lee works as a real estate agent and serves as a commissioner on the city's housing authority.

In 2000, she helped obtain a $500,000 state grant to build a nonprofit facility that was supposed to serve Asian Americans, but was never built, prosecutors said.

Lee allegedly submitted a false invoice to secure the grant, then used the money to pay five individuals and companies who wrote checks to Shelley's political campaign, according to the complaint.

In February, Shelley announced his resignation amid state and federal investigations into his handling of federal election funds, questionable campaign contributions and bad workplace conduct. He has not yet been charged in the investigations.