News Summary

The Michigan Attorney General’s Office executed search warrants at the MEDC headquarters amid an investigation into potential misuse of state grant funds. The scrutiny extends to Global Link International, a nonprofit linked to significant funding from MEDC, with concerning financial practices reported. As the investigation unfolds, the implications for MEDC’s governance and grant distribution processes could be significant.

Lansing, Michigan – The Attorney General’s Office executed search warrants at the Michigan Economic Development Corporation (MEDC) headquarters on June 18, as part of an ongoing investigation. Additional searches were carried out at a private residence in Farmington Hills linked to the nonprofit Global Link International, which has received significant funding from the MEDC.

Attorney General Dana Nessel spearheaded the search as part of a broader inquiry into the potential misuse of state grant funds distributed through the MEDC. While the specifics of the investigation remain undisclosed, the searches represent an escalation of scrutiny over how millions of dollars in grants have been allocated in recent years.

A spokesperson for Nessel confirmed the execution of the search warrants, but provided no details on what law enforcement agencies were specifically searching for during the operation. The search at the Farmington Hills residence targeted Fay Beydoun, president of Global Link International, which was awarded a controversial $20 million grant from the MEDC.

In recent reports, allegations concerning the financial practices of Beydoun’s organization have emerged, including claims that funds were expended on a $4,500 coffee maker, an $11,000 first-class plane ticket, and approximately $408,000 in salaries within a three-month period. Although no charges have been filed against Beydoun, the investigation was initiated based on these allegations.

The MEDC, which plays a critical role in managing corporate subsidy programs in Michigan and operates the Pure Michigan tourism campaign, has been cooperating with the Attorney General’s investigation for over two years. An MEDC spokesperson labeled the recent searches as “unwarranted and unnecessary,” choosing not to comment further on the investigation. On the day of the searches, all MEDC employees vacated the downtown Lansing facility, and no visible police presence was noted outside the building.

Witnesses in Farmington Hills reported that law enforcement vehicles were present at Beydoun’s home, with boxes seen being removed from the residence during the execution of the search warrant. Additionally, the MEDC has recently canceled Beydoun’s grant and is demanding the return of approximately $8.2 million due to alleged misuse of funds.

The inquiry is not limited to Global Link International; it also includes a separate investigation into a $2 million grant awarded to another nonprofit organization run by Gavin Brown. Questions regarding the oversight of corporate subsidies administered by the MEDC have been raised, with some state representatives voicing support for the ongoing investigations.

The significance of the investigation increased with the absence of key officials during the searches. Governor Gretchen Whitmer and MEDC CEO Quentin Messer Jr. were reportedly in Australia on an economic development trip at the time the search warrants were executed. Flint Mayor Sheldon Neeley, who is also a member of the MEDC executive committee, stated he was unaware of the investigations when the searches occurred.

The MEDC operates with an annual budget of approximately $90 million, overseeing the distribution of grants to various entities. The current investigations relate to ongoing concerns about accountability and transparency in the handling of state funds, and are likely to have significant implications for the future operations and governance of the corporation.

As the investigation proceeds, it remains to be seen how the outcomes will affect the MEDC’s operations and its relationships with nonprofit organizations seeking state assistance.