LANSING, Mich. (WZMQ) – Michigan Attorney General Dana Nessel announced felony charges against Fay Beydoun, accusing her of misusing a $20 million state grant intended to fund an international business accelerator.
Beydoun faces 16 felony counts, including conducting a criminal enterprise, forgery, uttering and publishing, and multiple counts of larceny by conversion. The charges stem from a grant awarded through a 2022 state budget law and administered by the Michigan Economic Development Corporation.
Prosecutors allege Beydoun used the funds for personal expenses, submitted fraudulent documents, and misrepresented how the money was spent.
“Today, we allege Faye Beydoun sought and received a 20 million Michigan Enhancement Grant from the state legislature where she operated a criminal enterprise to use those funds for personal expenses and her own enrichment,” Nessel said.
The grant was intended to attract international companies to Michigan, but investigators say the project produced no results.
“Our office has yet to find even a single identifiable business that for the efforts of global link international relocated to Michigan,” Nessel said.
According to investigators, some expenses included home furnishings, personal dinners and other purchases unrelated to the grant’s purpose. Authorities also allege Beydoun submitted false reports to maintain access to funds and continue drawing a salary exceeding $500,000.
The case also raises concerns about how the grant was structured and approved. Nessel described the funding as highly tailored.
“These glass slipper grants are a dedicated appropriation written so specifically that they could only possibly be awarded to one intended recipient,” she said.
Though the grant seems to have been tailored for Beydoun, the attorney general said there is currently no evidence that lawmakers knew the funds would be misused, though the investigation remains ongoing and could expand.
State officials have frozen more than $6 million connected to the case, which could be subject to forfeiture if prosecutors are successful.
Nessel said recent transparency reforms have improved oversight but acknowledged gaps remain.
“I believe there are still more that could be done to prevent abuses of state funds,” she said.
