A close ally of Michigan Governor Gretchen Whitmer has been charged with 16 criminal counts tied to the misuse of funds.

Fay Beydoun, a Michigan businesswoman and longtime Democratic donor, was charged Wednesday with allegedly misusing $20 million in state grants, Michigan's Democratic Attorney General Dana Nessel announced.

'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.'

Beydoun has been a prominent figure in Democratic circles for years, contributing tens of thousands of dollars to candidates statewide, including more than $20,000 to Whitmer's campaigns. 

She also hosted a Whitmer fundraiser at her home that raised $13,500. 

Whitmer later appointed her to the executive board of the Michigan Economic Development Corporation (MEDC), the state agency focused on economic growth.

Whitmer's office did not respond to the Daily Mail's request for comment. 

While serving on the MEDC executive committee, Beydoun obtained a Michigan enhancement grant in 2022 to launch Global Link International, a business accelerator in Oakland County. She was appointed by Whitmer to the board in 2019. MEDC's senior leadership was in charge of approving the grants.

She had previously sought a separate grant for the American Arab Chamber of Commerce, where she served as executive director - and it was the Chamber, according to Michigan journalist and podcast host Charlie LeDuff, that ultimately reported her to authorities.

'Why were there charges? Because the Chamber of Commerce was loud about it. They are very powerful. It's an evenly mixed board, political for sure,' LeDuff said.

'If they weren't complaining, you wouldn't see this,' LeDuff added.

The MEDC was responsible for administering the grant. 

Last year, investigators revealed that Nessel's office had opened a probe into the $20 million award. Authorities subsequently raided Beydoun's Farmington Hills home and MEDC headquarters.

Prosecutors allege Beydoun forged a law firm invoice linked to grant administration, falsely described a lease worth more than $40,000, and spent grant money on personal purchases, among them $6,000 in rugs, $5,000 in furniture, up to $2,000 in catering, and $1,400 in patio and gardening supplies.

The charges include conducting a criminal enterprise, forgery, uttering and publishing, and multiple counts of larceny by conversion.

Michigan Republican State Representative Bryan Posthumus, the majority floor leader in the State House, welcomed the development. 

'I'm glad to see at least someone is being held accountable for their part in this plot,' he told the Daily Mail.

Beydoun pleaded not guilty at her arraignment Wednesday and was released on a $50,000 personal bond. Her attorney at the Flood Law Firm said the allegations were baseless and vowed to fight them in court.

'For the last six months, our firm has attempted to demonstrate the illogical nature of the allegations against Ms. Beydoun to the Michigan Department of Attorney General,' the firm said in a statement. 

'Despite those efforts, it is evident that certain parties felt the need to further this very public spectacle in a way that is neither supported by the evidence that we have seen nor the investigative materials we possess. As always, we will save our best arguments for the courtroom.'

Whitmer, currently in her second term, is widely viewed as a potential presidential prospect in 2028.