The Charges Against Fay Beydoun
Michigan’s Attorney General, Democrat Dana Nessel, dropped 16 felony charges on Fay Beydoun, a prominent Democratic donor, accusing her of exploiting a $20 million state grant for personal gain. State records show Beydoun’s company got an initial $10 million deposit on April 1, 2023, from this grant, which was supposed to boost business in Michigan. Instead, Nessel claims Beydoun diverted the funds, including paying herself a $550,000 annual salary.
Investigators point to a pattern of abuse: Beydoun allegedly forged a legal invoice to cover personal legal fees with grant money, bought expensive handmade Tunisian rugs and a $4,000 coffee maker, misrepresented catering expenses for personal dinners as business costs, and filed false reports to keep the cash flowing. Out of $1.35 million in spending reviewed, less than $20,000 went to actual business development.
The charges include one count of conducting a criminal enterprise, seven counts of uttering and publishing, one count of forgery, and seven counts of larceny by conversion. Conviction on all could mean over 100 years in prison if maximum sentences stack up.
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.
A Grant Process Riddled with Cronyism
Nessel herself called out the flawed system that enabled this. The grant's proposal, development, award, and administration had 'practically zero semblance to the traditional grant process,' she said, made possible only by 'political cronyism with minimal oversight.' This isn't an isolated issue; it echoes broader concerns about green grants enriching allies, as seen in House GOP reports on $20 billion in similar schemes.
Despite using political ties to secure the grant, Nessel noted no evidence yet that recipients knew of the planned misuse. Beydoun didn't respond to requests for comment.
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.
Donations to Democrats After the Grant
The scandal has political ripples because Beydoun donated over $50,000 to Democratic campaigns post-grant. Federal records list contributions to Michigan Senate hopeful Rep. Haley Stevens, Sen. Elissa Slotkin, Rep. Hillary Scholten, and Rep. Kristen McDonald Rivet, all in toss-up races. Scholten's campaign got $1,000 in 2023 and has since donated it to charity. Stevens, Slotkin, Rivet, and the DCCC didn't comment.
Michigan GOP Chairman Jim Runestad blasted the situation, saying the Democrat Party in Michigan has a 'massive corruption problem.' He's demanding Stevens, Scholten, Rivet, and others return the 'alleged criminal's' money to taxpayers, warning that silence raises questions about what they knew.
The Democrat Party in Michigan has a massive corruption problem, and many of these top Democrat politicians happily took money from Beydoun. 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.
No Evidence of Politician Involvement, But Questions Linger
Nessel reiterated: '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.' The criminal complaint doesn't accuse any candidates or committees of knowing about the misuse. Still, the timing of donations after the grant award fuels scrutiny on Michigan Democrats and how taxpayer dollars flow through such channels.
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.
Key Charges and Potential Penalties
- One count of conducting a criminal enterprise
- Seven counts of uttering and publishing
- One count of forgery
- Seven counts of larceny by conversion
- Possible maximum: Over 100 years in prison if all convicted
