Michigan AG investigating alleged embezzlement of state grant from the American Arab Chamber

State law enforcement officials are now investigating what happened to a portion of a $3.4 million state grant that was routed away from the American Arab Chamber of Commerce without a clear explanation and following the resignation of Bilal Hammoud, the chamber’s former executive director.

A business incubator, Tejara, was in 2023 awarded a competitive state grant through the Michigan Economic Development Corporation’s Small Business Support Hubs program. The organization received $1.7 million in January and then another payment in the same amount in July.

The situation is yet another source of controversy for the MEDC. 

Fay Beydoun, a former member of the MEDC and a former executive director of the American Arab Chamber is currently facing multiple felonies for allegedly stealing MEDC funds for her own grant-funded project, Global Link International. Michigan Attorney General Dana Nessel brought charges against Beydoun in May.

The Tejara incubator project is self-described as a “pivotal initiative designed to bolster Michigan’s entrepreneurial ecosystem,” aimed at empowering those entrepreneurs and small business owners with “resources, education and opportunities.”

Hammoud was the CEO of Tejara, according to the grant. At the time, he was also the executive director of the chamber. Although Tejara is the sole recipient, it was a business incubator project of the chamber’s, one that is advertised on the chamber’s own website.

In a statement provided to Michigan Advance, the chamber said that it fired Hammoud as executive director of the chamber in August, and has retained the legal services of Warner Norcross + Judd to look into the situation.

“The Chamber took this action after discovering that certain organizational funds could not be accounted for,” the chamber said. “Upon that discovery, the Chamber moved without delay to protect the organization, ending Mr. Hammoud’s employment and securing its accounts against any further loss.”

Warner Norcross + Judd will conduct an independent, external investigation into the matter.

It has since been alleged that Hammoud may have potentially misused, embezzled or redirected the funds away from the chamber group, and a spokesperson for Nessel’s office confirmed with Michigan Advance on Tuesday that they are now investigating.

It also appears that the state is taking action by conducting a full review of the Tejara grant, the State Budget Office told the Advance this week.

“The State of Michigan has a zero tolerance policy for fraud or misuse of taxpayer dollars,” said office spokesperson Cole Pachucki in a statement. “Upon learning of allegations that an individual associated with the grant recipient may have improperly redirected grant funds, SBO quickly deactivated the account at issue to prevent any further activity.”

Pachucki confirmed that the state is conducting a thorough grant review that was “swiftly launched to determine what may have occurred and strengthen oversight, controls, and safeguards to help prevent similar issues from occurring in the future.”

“We stand ready to assist with any criminal investigation, and will take appropriate action to hold accountable any individual found to have improperly used or redirected grant funds and pursue the recovery of any taxpayer dollars found to have been misused,” Pachucki added.

In addition to the $3.4 million MEDC grant, Tejara also received $217,000 last year through a second grant administered by the Department of Labor and Economic Opportunity.

Gov. Gretchen Whitmer’s administration also took action prior to the SBO review by asking Hammoud to resign from the Michigan Workforce Development Board, Gongwer News Service reported. Hammoud was appointed to the board by Whitmer in 2025. Hammoud has since resigned from that post.

Additionally, the chamber said it stands ready to assist and cooperate with the attorney general office’s investigation.

“We are taking these steps because the trust of our members, partners, and the businesses we serve is the foundation of everything we do,” said Ahmad Chebbani, chairman of the chamber’s board, in a separate statement. “We are committed to getting this right and to being transparent with the community we serve. … The moment we recognized there was a problem, we acted to protect this institution and the people who depend on it. We met with the Attorney General on August, 25 because we are committed to full cooperation and to being accountable to everyone who places their trust in this Chamber.”

The chamber also noted that its programs and services, including the Tejara business incubator, would continue without disruption despite the ensuing investigations, which are occurring in tandem.