Soon after his announcement, it was revealed that federal prosecutors were seeking the whereabouts of $151,000 in missing campaign funds. That separate case is now in the hands of Erie County District Attorney John J. Flynn Jr.

Facing almost certain indictment by Schneiderman’s grand jury, Ortt launched what some legal observers labeled a “Hail Mary” defense early Wednesday, when he voluntarily offered to waive immunity and appear before the grand jury. Though other Niagara County figures were automatically granted immunity for their testimony, Ortt attempted to convince the panel of his innocence by the risky appearance, according to two veteran legal observers.

That bid apparently failed when the indictment was returned on Wednesday.

It is believed the charges stem from an agreement between Meghan Ortt, the senator’s wife, and Synor Marketing and Regency Communications, according to a source close to Ortt. She was under retainer as a graphic designer with the firms. The source contends payments were made directly to Meghan Ortt, and that the couple followed all disclosure requirements and paid all appropriate taxes on her retainer.

Meghan Ortt was among those who testified before the grand jury one week ago.