The Michigan Economic Development Corporation, which recently awarded $9.1 million in tax credits to a company led by a convicted embezzler who was wanted for parole violations, has announced new screening measures for those seeking tax breaks from the state

“[W]e will add to the [Michigan Economic Growth Authority] application a more explicit requirement of the company that it disclose any prior felony convictions by senior company executives,” MEDC President and CEO Greg Main announced Wednesday, “In addition we will perform a background check of all company officers prior to any final MEGA award.”

The Legislature has also responded to the incident, with both the Senate Commerce and Finance Committee and the House Oversight and Investigations Committee announcing investigations into how Richard Short, CEO of RASCO was awarded tax abatements, and whether other felons have received tax benefits under the program.

House Speaker Andy Dillon, D-Redford Township told the Detroit News:

“The fact that a felon almost walked away with more than $9 million in tax credits shows how badly state government is failing our taxpayers. We don’t even know how many other cases like this are out there, because state tax breaks and contracts don’t require the checks and balances that Michigan taxpayers deserve.”

Michigan now gives out more in tax credits than it collects in revenue.