Beydoun faces 3 new charges in grant scandal, including alleged use of funds for her legal defense

Michigan Attorney General Dana Nessel announced Friday afternoon three new charges against Fay Beydoun, the businesswoman who faces accusations of misusing $20 million in state legislative grant funding. 

The new charges allege that she used hundreds of thousands of dollars in funds from her nonprofit organization, which was funded with state grant money, for her own legal defense fund, as well as for a membership to a professional organization and for personal furniture purchases. 

Beydoun was charged in May with 16 felonies — conducting a criminal enterprise, forgery, larceny by conversion of more than $20,000, six counts of larceny by conversion involving $1,000 to $20,000 and seven counts of uttering and publishing. At that time, Nessel’s office said that the investigation was ongoing and could result in additional charges.

Nessel’s press release detailed the background of the initial charges against Beydoun, which stem from a “Michigan enhancement grant” that she received through the fiscal year 2023 state budget to establish and operate a global business accelerator in Oakland County — her nonprofit, Global Link International (GLI).

Now, Beydoun faces three additional charges related to the alleged theft of the funds, including two counts of larceny from a person, each a 10-year felony charge, “concerning an attempt to have GLI pay her legal expenses in defending herself against allegations that she stole from GLI, and for a donation to the Michigan Founders Fund alleged to be for personal reasons,” and one of larceny by conversion, a five-year felony.

“These newly charged allegations reflect the continued investigative efforts ongoing in my office, and a broader extent of Beydoun’s alleged expenses made with state grant funding,” Nessel said in a press release announcing the new charges. 

She noted that the case — which had initially been scheduled for a preliminary examination in January but will be postponed because of the new charges — will stretch beyond her term, which ends at the end of 2026, and stated that the case “remains a top priority within our Financial Crimes Division.”

Beydoun’s grant, which was administered by the Michigan Economic Development Corporation (MEDC), was secured while she served on the MEDC Executive Committee, and Nessel’s office has alleged that “no business relocated to Michigan through Global Link International efforts. Instead, Beydoun is accused of using the funds for personal gain and maintaining a $550,000 annual salary.”

“The new charges, like the old ones, are built on a house of cards,” attorney Todd Flood, whose law firm is representing Beydoun, told the Detroit News. Michigan Advance has requested a comment, but has yet to receive a response. This story will be updated once one is received.

“We allege Fay 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, and lied repeatedly when reporting how she used those funds, rather than using them towards the legally intended purpose of the grant,” Nessel said at the time of the initial charges.

The initial charges against Beydoun led to calls for change in the structure and administration of the MEDC, which have continued as controversies around the agency continue.