The Michigan Economic Development Corporation is asking a judge to shield documents seized in a raid on its offices from an investigation by the state attorney general.
The MEDC says the documents are privileged and should be returned because the agency is not a specific target of the investigation.
“We have initiated the appeal process because the attorney general’s office took privileged materials without allegation of any wrongdoing on the part of MEDC — even stating to the court MEDC is not a suspect or under investigation," said MEDC Media and Communications Manager Otie McKinley in an e-mailed statement. “This sets a dangerous precedent for attorney and client relationships with implications significantly broader than this specific case."
The documents were seized June 18 under a search warrant executed by state investigators in a sweep through the MEDC’s Lansing offices as well as on the Farmington Hills home of Fay Beydoun.
Beydoun is a former MEDC board member and fundraiser for Governor Gretchen Whitmer who is the investigation target. The attorney general is looking into a $20 million grant in the 2022 budget approved by the Republican-controlled Legislature and signed by Whitmer. The money went to a “business accelerator” run by Beydoun that caught the attention of authorities when it was revealed its expenses included a $4,500 coffeemaker, an $11,000 first-class plane ticket and six-figure salaries for its two employees.
Michigan Attorney General Dana Nessel said Tuesday there is already an avenue for an independent review to determine what is privileged and what is not.
“I see it as my job as state attorney general to make sure that we don’t see state tax dollars being misused, and so I’m going to continue to do my job and it is my hope that MEDC will also place great value on making sure that state tax dollars are not abused that way,” she said.
“And so, it’s a little bit alarming and concerning and also disappointing to have MEDC pushing back in the way that they have,” she said. “We have this process in place so that we can fully protect the attorney-client privilege and to protect everybody’s rights.”
Nessel said the state will focus on other aspects of the investigation while the court case plays out.
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