Why It Matters
The Michigan Attorney General’s office has launched an investigation into allegations that millions of dollars in state grant funds were improperly diverted from a Detroit-area business incubator linked to the American Arab Chamber of Commerce. The probe raises significant questions about oversight mechanisms for taxpayer-funded economic development programs and highlights the financial risks associated with overlapping leadership roles in nonprofit organizations.
What Happened
As first reported by michiganadvance.com, state authorities are examining whether Bilal Hammoud, a former executive director of the American Arab Chamber of Commerce, misused or embezzled public funds intended for Tejara, a business incubator program. Tejara received $3.4 million in total through the Michigan Economic Development Corporation’s (MEDC) Small Business Support Hubs program. The funding arrived in two installments: $1.7 million in January 2023 and another $1.7 million in July 2023.
Hammoud served as CEO of Tejara while simultaneously holding the top executive position at the American Arab Chamber. This dual role has drawn scrutiny amid allegations that grant money was redirected away from its intended purpose or improperly handled. The chamber terminated Hammoud’s employment in August, following his resignation as executive director.
The investigation comes shortly after Attorney General Dana Nessel brought felony charges against Fay Beydoun, a former MEDC board member and ex-executive director of the chamber. Beydoun faces multiple felony counts for allegedly stealing state funds designated for the Global Link International project. The AG’s office filed those charges in May.
In response to the unfolding situation, the American Arab Chamber retained Warner Norcross + Judd, a prominent Michigan law firm, to conduct an independent external investigation. State Budget Office officials also deactivated the grant account associated with Tejara to prevent any further financial activity while the inquiry proceeds.
By the Numbers
$3.4 million — Total state grant awarded to Tejara through MEDC’s Small Business Support Hubs program
$1.7 million — Amount of each of the two payments received by Tejara in January and July 2023
$217,000 — Additional grant funding Tejara received from the Department of Labor and Economic Opportunity last year
August 25 — Date the American Arab Chamber met with the Attorney General’s office regarding the allegations
Leadership Overlap and Accountability
The case underscores concerns about governance structures when individuals hold simultaneous leadership positions in connected nonprofit entities. Hammoud was appointed to the Michigan Workforce Development Board by Governor Gretchen Whitmer in 2025 but has since resigned from that post. The State Budget Office emphasized its stance on fiscal integrity, with spokesperson Cole Pachucki stating, “The State of Michigan has a zero tolerance policy for fraud or misuse of taxpayer dollars.”, as first reported by the Michigan Advance
Ahmad Chebbani, chairman of the American Arab Chamber board, addressed the community’s concerns directly. “We are committed to getting this right and to being transparent with the community we serve,” Chebbani said.
Zoom Out
This investigation reflects broader national scrutiny of how state economic development funds are distributed and monitored. Across the United States, states have invested billions in small business support hubs, workforce training initiatives, and minority-owned enterprise programs since the pandemic era. While these programs aim to stimulate local economies, they also require robust auditing and compliance frameworks to prevent misuse.
Michigan is not alone in facing challenges related to grant oversight. Several states have recently tightened regulations on nonprofit funding after discovering discrepancies in how organizations reported expenditures. The federal government has also increased pressure on state agencies to demonstrate measurable outcomes for taxpayer investments, particularly in programs targeting underserved communities.
What’s Next
The Attorney General’s office will continue its investigation into the alleged misappropriation of funds. If evidence supports criminal charges, Hammoud could face prosecution similar to that pursued against Beydoun. Meanwhile, the independent review conducted by Warner Norcross + Judd is expected to provide additional clarity on internal controls and potential reforms needed within the American Arab Chamber.
State lawmakers may also consider revisiting oversight procedures for MEDC grants to ensure greater transparency in future disbursements. Until then, the deactivated grant account remains frozen, and no further funds will be released to Tejara pending the outcome of the inquiry.