Greg Main, CEO of the Michigan Economic Development Corp., offered to resign after MEDC last week awarded tax credits to a company led by a convicted embezzler, according to the Detroit Free Press.

MEDC last week approved a $9.1 million tax credit on Tuesday to convicted fraud artist Richard Short’s RASCO Corp., which had promised to create 765 jobs in Flint. Short now faces felony charges connected to allegations over a separate incident, and the tax credits have been rescinded.

Michigan Economic Development Corp. CEO Greg Main

Main became CEO of the MEDC when former CEO James Epolito resigned in spring 2009. The Free Press reported that Gov. Jennifer Granholm chose not to accept Main's offer.

The state's incentives are not awarded until workers are hired, but the state Legislature is now investigating the incident.

"We obviously failed to do what we should have done in this particular case," Main said, according to the Free Press. "We've taken steps to rectify that. I can't make any excuses."

The incident prompted state officials to order background checks for companies under consideration for state tax credits, according to the Associated Press.

Granholm, speaking Friday at a press conference in Scio Township, defended the state's tax incentives strategy.

“This has never happened before,” Granholm said. “We’ve got to double down the process and make sure it doesn’t happen again, but we can’t abandon our efforts to diversify Michigan’s economy.”