Dem donor’s massive taxpayer-funded payday blows up into felony case roiling state politics
Michigan’s attorney general, a Democrat, announced 16 felony charges against major Democratic donor Fay Beydoun on Wednesday, alleging that she used a $20 million state grant to enrich herself.
State records cited by investigators said Beydoun’s company received an initial $10 million deposit on April 1, 2023, from a $20 million state grant intended to attract more business activity to Michigan. Michigan Attorney General Dana Nessel alleges Beydoun instead used grant funds for personal enrichment, including maintaining a $550,000 annual salary.
"Today, we allege Fay Beydoun sought and received a $20 million ‘Michigan enhancement grant’ from the state Legislature, operated a criminal enterprise to use those funds for personal expenses and her own enrichment, and lied repeatedly when reporting how she used those funds," Nessel said of the charges.
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"The process by which this ‘grant’ was proposed, developed, awarded, and administered bears practically zero semblance to the traditional grant process, and was only made possible through a system that pairs political cronyism with minimal oversight," Nessel continued.
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The charges have also created political fallout in Michigan because Beydoun was a donor to Democratic candidates and committees after her company received the grant. The criminal complaint does not allege that any candidate or committee knew of the alleged misuse of grant funds.
Federal records show that Beydoun donated well over $50,000 to various Democratic campaign committees following the grant in April 2023. Notable Democrats to receive donations from Beydoun include Michigan Senate frontrunner Rep. Haley Stevens and Sen. Elissa Slotkin, as well as Reps. Hillary Scholten and Kristen McDonald Rivet, both of whom are defending toss-up House seats.
"Congresswoman Scholten’s campaign received $1,000 from Fay Beydoun in 2023, a previous campaign cycle," a spokesman for the congresswoman told Fox News Digital. "In light of Beydoun’s criminal charges this week, Congresswoman Scholten has donated the funds to a local charity."
Stevens, the DCCC, Rivet and Slotkin did not respond to requests for comment when reached by Fox News Digital on Thursday.
"The Democrat Party in Michigan has a massive corruption problem, and many of these top Democrat politicians happily took money from Beydoun," Michigan GOP Chairman Jim Runestad told Fox News Digital. "The Michigan Republican Party is calling on Haley Stevens, Hillary Scholten, Kristen McDonald Rivet and anyone else who took money from this alleged criminal to return it to the taxpayers. If they don't immediately return this money, it only raises additional questions about who knew what and when."
Nessel has accused Beydoun of forging a legal invoice to use grant funding for personal legal fees, using grant funds to purchase expensive handmade Tunisian rugs and a $4,000 coffee maker, misrepresenting expense reports to cater personal dinners and submitting false reports to keep the grant money flowing.
Of the $1.35 million of Beydoun's spending analyzed by the Michigan attorney general, less than $20,000 was found to have been used for business development purposes.
Beydoun faces one count of conducting a criminal enterprise, seven counts of uttering and publishing, one count of forgery, and seven counts of larceny by conversion.
Beydoun would face over 100 years behind bars if convicted on all charges and sentenced to the maximum penalties.
"While it's clear to us that Fay Beydoun used her political connections to get this grant, we don't have evidence that people knew that she planned to misappropriate the money or to spend the money illegally," Nessel said of the case. "We don't have evidence of that."
Beydoun did not respond to a request for comment after being reached by Fox News Digital on Wednesday.