Michigan woman accused of £20 million grant fraud for luxury spending spree
A 62-year-old woman from Farmington Hills has been charged with running a multi-million-pound fraud scheme against the State of Michigan. Fay Beydoun stands accused of setting up a fake nonprofit to secure a £20 million grant, then diverting the funds for personal use. Beydoun allegedly created a sham organisation to trick state officials into awarding her the grant. Once approved, she began paying herself an £800,000 annual salary from the public money. Investigators claim she exploited political ties to push the scheme through without early scrutiny.
The fraud remained hidden until after half the grant—£10 million—had been disbursed. Michigan’s standard practice delays audits until funds are partially spent, allowing Beydoun to spend freely. Prosecutors say she used the money for luxury items, including a £4,500 coffee machine, a £11,000 first-class plane ticket, and £6,000 worth of Tunisian rugs. Her alleged deception extended to fake invoices. Authorities found fraudulent expense claims, such as a bill for legal services and a lease on an empty plot of land. When officials finally intervened, they froze £6.5 million still under her control. Beydoun now faces 16 felony charges, including running a criminal enterprise, forgery, and theft by deception. If convicted, she could spend over 170 years in prison.
The case has exposed gaps in Michigan’s grant oversight system. Only £10 million of the £20 million was released before the fraud was detected. The remaining £6.5 million remains frozen as the legal process continues.
