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Thelen shared an executive summary addressed to Board of Ethics Executive Secretary Kurt Weiss, written by Assistant Attorney General Adam R. De Bear, recommending the case be dismissed without a hearing. He also included his response to the complaint, submitted to the Board of Ethics, along with his comments to us, stating, “You will clearly see that the allegations are proven to be without merit.”

Thelen went on to say, “I can confidently state that I have never violated any rules as a Michigan Strategic Fund board member. When I was asked to join the board as a citizen representative, I proactively engaged in conversations with the MSF legal counsel, compliance officer, and staff to ensure they were aware of my job and relationships. In compliance with MSF Conflict of Interest policy, I have always recused myself from any vote or discussion regarding a project in which The Right Place was to receive funding and any other organization I was a member of in a volunteer capacity.”

With a 30-year record of “working transparently” with public bodies, Thelen says that the suggestion of his participation in any MSF vote in a nebulous fashion is “insulting and borderline defaming.” Pointing to making it his life’s work to further economic opportunities in Michigan, he said he’s provided exhaustive public documents refuting each “false” claim.

Lutz answers allegations through attorneys.

Although Tom Lutz didn’t provide Michigan News Source with any comments pertaining to the complaints, his attorneys with Miller, Canfield, Paddock and Stone, PLC submitted his answer to the allegations to the Board of Ethics. They described Hughes’s claims as a “meandering narrative” and labeled the accusations that Mr. Lutz solicited funds and accepted grants from the MEDC for personal gain as “simply and demonstrably false.”

Clusters of problems alleged.

The allegations raised by Hughes highlight examples within what she sees as a larger pattern of governance challenges in Michigan’s economic development framework. Critics say addressing these issues is crucial to ensure ethical compliance, protect taxpayer funds, and safeguard Michigan’s natural resources.

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Under the Whitmer administration, the Michigan Strategic Fund (MSF) board, which serves as the funding arm of the Michigan Economic Development Corporation (MEDC), has allocated billions of taxpayer dollars to corporations, including some foreign-owned entities. Critics argue that these funds have been used to develop toxic heavy industrial facilities that pose a potential threat to the integrity of the Great Lakes watershed, which contains over 20% of the world’s fresh water.

What does Hughes want and what else is she looking into?

Hughes told Michigan News Source, “I want the end of the Michigan Economic Development Corporation. I want state offices to have working phone numbers and offices taxpayers can walk into. I want accountability for elected officials on both sides of the aisle. I want the law applied equally.”

Hughes also mentioned that she’s taking a deep dive into the activities of Fay Beydoun who was given an appropriation of $20 million by Michigan’s legislature in 2022. Most people might be familiar with Beydoun after she was exposed to have spent $4,500 on a coffeemaker and $11,000 on a first class plane ticket in what lawmakers called fiscal mismanagement. Beydoun is a frequent Democrat donor who gave $750 to AG Dana Nessel’s campaign between 2001 and 2002 as reported by the Detroit News.

In a preview to what Hughes has already uncovered, she told Michigan News Source, “While she (Beydoun) sat on MEDC’s executive committee, Beydoun received $20 Million appropriation for a tax- exempt organization that did not exist yet based on her experience as a nonprofit leader. Shortly thereafter, Beydoun created her 501c3, Global Link International, which she operates as a charity while failing to file an IRS 990s or apply for a Michigan license to solicit. Mind you, taxpayers have funded her attorneys and accountants handsomely. Clause XVIII of her contract with MEDC states that she will get a license as required by law. Taxpayers have paid for her various trips, airbnbs, and lunches without Beydoun listing attendees or adding agendas to her MEDC spending reports.”

What is ahead with the Board of Ethics?

The next scheduled meeting of the Ethics Board is March 6th. The State Board of Ethics, established under the State Ethics Act, oversees the ethical conduct of executive branch officials. While it has the authority to hold public hearings and gather sworn testimony, its findings and recommendations serve only as advisory guidance.

Whether this complaint prompts action or just adds another chapter to Michigan’s political soap opera remains uncertain. One thing is clear: the state’s ethical watchdogs have their hands full, especially with recent ethics complaints involving the Michigan State Police.

In the meantime, Michiganders will be keeping a sharper eye on where their dollars are headed – and who’s at the helm. That includes the new Republican majority in the House which has granted the House Oversight Committee sweeping authority to subpoena state officials for testimony. Among the six announced subcommittees, one will focus on investigating “corporate subsidies by the state” – a move that could mark a turning point toward greater fiscal accountability and oversight on the projects and “megasite” developments that have been subsidized by the taxpayer dollars of Michigan residents.