LANSING — Attorney General Dana Nessel is investigating a $20 million state grant that was allegedly misused on luxury items and first-class plane tickets.
The dispute centers on a grant given to Metro Detroit businesswoman Fay Beydoun, which was awarded in the 2022 state budget for business attraction.
The situation led to law enforcement serving a search warrant on Beydoun’s home and the office of the Michigan Economic Development Corporation, the department that disbursed the grant.
Beydoun previously served on the MEDC’s executive board. She was appointed by Gov. Gretchen Whitmer, who she held a fundraiser for in 2022.
“How could it be that $20 million of taxpayer money could be potentially completely lost, some of it’s already gone, and no one’s responsible? That’s hard to believe,” said John Sellek, CEO of Harbor Strategic Public Affairs. “And this is where an attorney general comes into play, because it’s their job, ultimately, to be Michigan’s top cop.”
The MEDC is not a target of the investigation at this point — they were described in a filing from the attorney general’s office as a “non-cooperative third party.”
Otie McKinley, spokesperson for the MEDC, said in a statement that the department awarded the grant to Global Link — Beydoun’s company — according to its usual procedures.
“MEDC has been cooperating with the attorney general’s investigation into global link for well over a year,” he said. “The grant to Global Link was appropriated by the Legislature – with the amount, the recipient and the disbursement schedule set forth in the boilerplate language.”