The central figure is Sam Fayad, a property developer facing significant financial troubles. A key associate is Rami Ayoub, whose company, I Properties, is involved in complex loan arrangements with Fayad. Joe Khattar, Fayad's estranged business partner, also plays a role in the legal disputes.
Fayad is embroiled in a $2.8 billion debt, with various creditors pursuing legal action. The article details accusations of tax evasion and asset protection strategies. Millions of dollars from the sale of a property were allegedly diverted, violating court orders. I Properties, allegedly acting on behalf of Fayad, lent him over $21 million despite its own financial difficulties and unpaid tax issues.
Multiple legal proceedings are underway. A freezing order prevents Fayad and associates from disposing of assets. The Australian Taxation Office (ATO) is involved, seeking millions in unpaid taxes and penalties. The sale of a property, originally intended to settle tax debts, is at the center of a dispute, with claims of breaches of court orders.
The article highlights a history of tax avoidance by Fayad, dating back a decade. Special purpose companies were allegedly used to minimize tax liabilities, followed by company collapses leaving millions owed to the ATO. A lack of significant penalties from corporate regulators is criticized.
A key asset involved is Fayad's seven-bedroom house, which is facing forced sale to recover debt owed to I Properties. The sale is being handled through expressions of interest.
In their six-car garage are three Ferraris, an Aston Martin and another car.
Forcing the sale of the property is I Properties, which holds a mortgage over the house. According to Fayadâs 142-page statement of affairs filed for his bankruptcy, I Properties has loaned him more than $21 million.
However, Rami Ayoub, sole director and shareholder of I Properties, has been alleged in court to be a front for the Fayads. Corporate documents list the companyâs registered office as that of Sam Fayadâs longtime tax lawyers, Pope and Spinks.
How Ayoubâs company came to lend that amount of money to Sam and Maria Fayad remains a mystery, as there have been numerous caveats lodged on Ayoubâs own properties by State Revenue NSW for unpaid taxes.
Ayoub, who has twice staved off bankruptcy, runs a business associated with recycled tyres. In 2019, he offered a property owned by his company, Sustainable Rubber Technologies, as security for $1 million to obtain bail for his relative Torek Ayoub, who was facing charges of being an accessory after the fact to the killing of 15-year-old Brayden Dillon. Torek, 29, was gunned down in Parramatta last August.
Rami Ayoub, 58, as the vendor of the Fayadsâ Constitution Hill mansion, has determined it will be sold by âexpressions of interestâ. Prospective buyers have until 5pm on Monday to submit offers.
Last month, Federal Court Justice Angus Stewart granted a freezing order preventing nine defendants â including Sam Fayad, his two sons, several related companies and Ayoubâs company, I Properties â from disposing of certain assets as the liquidator of another collapsed Fayad company, Special Gold, chases them for $33 million.
The Constitution Hill property, however, was not listed as one of the assets.
The judge noted there was a claim against I Properties for payment of $740,000 and that âthe director of that company, Rami Ayoub, appears to act on behalf of or on the instructions of the Fayad familyâ.
The Special Gold proceedings, which are being funded by the ATO, relate to the $74 million sale of a building owned by the company in Parramatta.
In late 2020, Fayadâs now estranged business partner and brother-in-law Joe Khattar, also now bankrupt, took legal action over the proposed sale of the Argyle Street property. The court heard that without her knowledge, Khattarâs wife Chahida had been removed as a director of Special Gold and replaced by her brother Sam Fayad.
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Khattar was also furious that Special Gold had agreed with the ATO to use the sale of Argyle Street to pay off Fayadâs various tax debts and the debts of several of their associated companies.
On December 17, 2020, Supreme Court Justice Ashley Black ordered that the ATO should receive the $33 million it was owed in taxes and penalties, but the rest of the profits from the sale should be frozen.
But before the week was out, Sam Fayad is alleged to have breached those orders. The sale of the Parramatta property was finalised on December 22, 2020. Not only was no tax paid, but millions of dollars allegedly flowed into various entities associated with Fayad and his sons.
More than $4.5 million of the proceeds went into companies associated with Rami Ayoub. According to land title documents, it appears some of the Argyle Street proceeds were used by I Properties to buy a property in Carlingford from another of the Fayadsâ failed companies.
A decade ago, a Herald investigation revealed that Fayad had an aversion to paying tax. Dozens of his special-purpose companies would complete a development, having paid his company Dyldam handsomely for construction services, several units would be transferred to family and friends, and then the company would collapse owing the ATO millions of dollars.
Frustrated liquidators have expressed their fury at the lack of action by corporate regulators. Prominent liquidator Stephen Hathway, who has previously described Dyldamâs directors as âmasterminds of manipulationâ, has complained that the only penalty Fayad has received is a $6000 fine for failing to provide books and records to another liquidator.
Fayad and Ayoub were contacted for comment.
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