Michigan AG Charges Democratic Donor Fay Beydoun with 16 Felonies over $20 Million Grant Misuse

Michigan Attorney General Dana Nessel, a Democrat, announced 16 felony charges Wednesday against Fay Beydoun, a major Democratic donor. Prosecutors allege Beydoun used a $20 million state grant to enrich herself.

State records show Beydoun's company received an initial $10 million deposit on April 1, 2023, from the grant. The money was meant to attract more business activity to Michigan. Nessel says Beydoun instead spent it on personal enrichment, including 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.

"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," she added.

The charges have stirred political fallout in Michigan. Beydoun donated to Democratic candidates and committees after her company got the grant. Federal records indicate she gave more than $50,000 to various Democratic campaign committees following the April 2023 grant. Recipients included Michigan Senate frontrunner Rep. Haley Stevens, Sen. Elissa Slotkin, and Reps. Hillary Scholten and Kristen McDonald Rivet, who 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 Scholten 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 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 accused Beydoun of forging a legal invoice to cover personal legal fees with grant money. She also allegedly used funds to buy expensive handmade Tunisian rugs and a $4,000 coffee maker, misrepresented expense reports for personal dinners, and submitted false reports to keep the money coming.

Of the $1.35 million in Beydoun's spending that the attorney general analyzed, less than $20,000 went to business development.

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. Conviction on all charges with maximum penalties could mean more than 100 years in prison.

"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. "We don't have evidence of that."

The criminal complaint does not allege that any candidate or committee knew of the alleged misuse. Beydoun did not respond to a request for comment Wednesday.