Michigan woman accused of stealing $20M via fake nonprofit for luxury splurges

A 62-year-old woman from Farmington Hills has been charged with creating a fake nonprofit to steal millions from Michigan taxpayers. Fay Beydoun allegedly secured a $20 million state grant through deception and spent part of the money on luxury items for herself. Beydoun stands accused of setting up a sham organisation to fraudulently obtain the grant from the Michigan Economic Development Corporation (MEDC). Investigators claim she planned to pay herself an annual salary of $800,000 using the funds.

The MEDC only began auditing her expenses after half the grant—$10 million—had already been disbursed. Authorities later froze $6.5 million still under Beydoun’s control. Prosecutors allege she submitted fake invoices, including one for a two-year lease on a property that turned out to be an empty lot. She is also accused of using political ties to redirect state money into her personal accounts. Beydoun now faces 16 felony charges, including running a criminal enterprise, forgery, and larceny. If convicted, she could spend over 170 years in prison. Among her alleged purchases were a $4,500 coffee maker, a $11,000 first-class plane ticket, and $6,000 worth of Tunisian rugs.

The case has exposed gaps in oversight at the MEDC, which failed to detect the fraud until millions had been spent. Beydoun remains in custody while the investigation continues. The remaining frozen funds will stay under court control pending the trial’s outcome.