Schaaf, who is currently running for California State Treasurer is one of several people wrapped up in an investigation by the Oakland Public Ethics Commission.
MORE: Former Oakland Mayor Libby Schaaf announces run for CA state treasurer in 2026 election
A proposed settlement agreement lays out the allegations running from 2018 to 2022.
Investigators say Schaaf secretly controlled campaign committees trying to defeat incumbent city councilmembers and a ballot measure.
They say she failed to disclose her involvement which violates Oakland election rules.
Ethics investigators recommended Schaaf pay more than $20,000 in fines.
Schaaf's attorney says the mayor was acting on incorrect legal advice.
He told ABC7 News in a statement, "Mayor Schaaf sincerely and reasonably believed she was following the law. Her actions were motivated by improving Oakland and helping its children."
To read the full settlement agreement, click here.