However, after it became clear that the GOP establishment had already decided on Pennsylvania Attorney General Mike Fisher as their candidate, she dropped out of the race. Treasurer Hafer went on to endorse the Democratic nominee, former Philadelphia mayor Ed Rendell, effectively severing all her remaining ties to the Republican Party. Her decision to endorse Mayor Rendell "psychologically helped break" the back of the Fisher For Governor campaign., and Mayor Rendell went on to win the Election. In 2003, Treasurer Hafer completed her political conversion by switching to the Democratic Party. Her switch was criticized by Senator Rick Santorum and other Pennsylvania Republicans, for using the backing of the party for five statewide campaigns, only to then switch without even contesting a Primary. She countered that Senator Santorum being the "de facto" leader of the state party has moved them further to the right, alienating socially liberal (but fiscally conservative) Republicans like herself. She cemented herself as a Democrat by donating the maximum amount to Massachusetts Senator John Kerry's Presidential campaign, and endorsing Dan Onorato in his successful bid for Allegheny County chief executive. Hafer also donated to Mayor John Street's re-election campaign. After her party switch, it was reported that she was considering challenging long-time rival and incumbent lieutenant governor Catherine Baker Knoll in the Democratic primary. She was also reportedly considering seeking the Democratic nomination for U.S. Senate against Republican senator Rick Santorum, with a likely primary challenge to the front-runner Bob Casey Jr., Hafer's other political rival. Hafer however affirmed that she buried the hatchet with all of her former rivals long ago, and did not run against either, endorsing Bob Casey Jr. as soon as he announced his Senate candidacy. Barbara Hafer's daughter, Beth sought to run against Republican Congressman Tim Murphy in 2008, but narrowly lost the Democratic primary. In February 2010, Hafer declared her candidacy for the Congressional seat left vacant by the death of incumbent Democrat John Murtha. She sought the Democratic nomination for the May special election before ending her Congressional candidacy on March 10, 2010. On July 21, 2016, Hafer was indicted on federal charges of lying about taking in more than $500,000 in consulting fees from a company that did business with her office. U.S. Attorney Peter Smith said Hafer lied to federal agents who interviewed her in May about money she secretly took in from a business person referred to in the indictment only as "Person #1." Sources close to the investigation described "Person #1" as moneyman Richard W. Ireland, of Chester County, one of Hafer's biggest campaign contributors.