Former Whitmer appointee charged with criminal enterprise in connection to $20M state grant

Prosecutors allege former state board member misused taxpayer funds, falsified spending reports tied to Global Link grant

FARMINGTON HILLS, Mich. — A Former Whitmer appointee has been charged in connection to $20M state grant has been charged with conducting a criminal enterprise and multiple felony fraud offenses tied to a $20 million taxpayer-funded grant, according to court records and state officials and the Detroit News reporting.

Fay Beydoun, 62, faces 16 felony counts, including conducting a criminal enterprise, forgery, uttering and publishing, and multiple counts of larceny by conversion and larceny involving amounts ranging from $1,000 to more than $20,000.

The Detroit News reports, charges stem from allegations related to how funds were spent and documented from a state grant intended to establish an international business accelerator, according to an affidavit filed by investigators.

Michigan Attorney General Dana Nessel’s office alleges Beydoun used grant money for personal expenses and misrepresented how the funds were used.

The case was filed May 4 in the 47th District Court in Farmington Hills and remains open. The case is assigned to Judge Marla E. Parker. Beydoun is represented by attorney Todd F. Flood, who did not immediately respond to a request for comment.

According to state records and prior reporting, the $20 million grant was approved as part of a roughly $1 billion state budget package for fiscal year 2022 to 2023. The funding was intended to support a business accelerator known as Global Link International.

The grant has drawn scrutiny in recent years after reports that the nonprofit receiving the funds was not formally registered with the state until after the budget passed. Reported expenses tied to the grant included a $4,500 coffeemaker and an $11,000 first class international flight.

At the time the grant was approved, Beydoun was serving as executive director of the American Arab Chamber of Commerce and also sat on the board of the Michigan Economic Development Corporation, the agency tasked with administering the grant.

Investigators allege Beydoun sought the appropriation while simultaneously serving in a decision making role tied to the agency overseeing the funding.

No arraignment date, bond information, or hearing schedule had been listed in court records as of Tuesday.

Beydoun is presumed innocent unless proven guilty in a court of law.