Bankrupt brothers, billions in debt – and the wife who bought the family’s assets

Despite not having a job and being surrounded by a family of bankrupt property developers who owe a combined total of almost $3 billion, Miryam Fayad, 36, has emerged as a financial phenomenon, coming up with more than $10 million to purchase several of her troubled family’s assets.

“These sales appear to be a sham to defeat creditors,” said one expert, having reviewed the background of Miryam Fayad’s secret $5 million purchase of two neighbouring houses owned by her parents-in-law, Maria and Sam Fayad.

And, while creditors were chasing her husband, Fayad-Lee, last year, Miryam paid him $5.22 million to acquire their family home and two other neighbouring properties. All five houses Miryam purchased are in the same street in Constitution Hill, near Parramatta.

When examined about his financial affairs in the Federal Court in February, Fayad-Lee told the court that his wife owns the family home and that she pays the mortgage. He agreed that he sold her the property in 2024, but he said he couldn’t remember the exact amount. He also denied paying any money towards her purchase of that property. He also said he drives a Range Rover, which is also owned by his wife.

Ten days ago, on July 3, Fayad-Lee and his younger brother Remon declared themselves bankrupt. Fayad-Lee owes $17 million to the Australian Taxation Office, while his younger brother owes $15 million.

Of the crippling debts of $2.8 billion that family patriarch Sam owes his creditors, the ATO is owed $46.5 million. Sam’s wife, Maria Fayad, owes the ATO $24.4 million, and Maria has also failed to pay her sister-in-law, Carol Khattar, a judgment debt of $21.5 million.

Last week, a Federal Court heard allegations that the Fayad brothers were involved in a “fraudulent and dishonest scheme” with their father, Sam, to cheat the ATO out of millions of dollars.

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, and that the rest of the profits from the $73 million sale of a Parramatta building owned by Sam Fayad’s company, Special Gold, 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.

At the time, the family’s property empire, the Dyldam group, was in dire financial straits, and Sam Fayad is alleged to have directed $8 million from Special Gold towards keeping Dyldam afloat.

Last week, the ATO funded a court case trying to claw back some of the millions which it claimed it should have received from Special Gold.

The court heard allegations that Rami Ayoub was part of a scheme in which the profits from the sale of Special Gold’s building were channelled through his companies for Sam Fayad’s benefit.

The Herald recently revealed that it was Rami Ayoub who was the vendor selling Sam and Maria’s houses as Ayoub’s company I Properties held the mortgages over the houses. According to Sam Fayad’s 142-page statement of affairs filed for his bankruptcy, I Properties has loaned him more than $21 million.

Ayoub, who gave evidence via video link from Dubai, told the Special Gold court case last week that he was paid a “consultancy fee” for receiving $4.5 million from Special Gold’s accounts and then re-directing those funds at Sam Fayad’s direction.

He explained that his companies were making payments rather than Fayad because creditors “did not trust Mr Fayad to honour his commitment to pay”.

But Ayoub denied that he had any knowledge that Sam Fayad was “stripping money out of Special Gold” for Fayad’s own benefit. He said he merely accepted “instructions from my client”.

Justice Ian Jackman has reserved judgment in the matter.

The court did not deal with the source of $21 million that Ayoub lent the Fayads. His company, I Properties, has mortgages on a number of Fayad properties.

In May, as mortgagee in possession, Ayoub’s company offered for sale two of Sam and Maria Fayad’s houses, including their “seven-bedroom masterpiece” in Constitution Hill.

While the sales of both properties are yet to be registered with land titles, the Herald can reveal that on June 3, the couple’s daughter-in-law, Miryam, bought the properties.

On the eve of the sale campaign – which was conducted by expressions of interest rather than an auction – Miryam established two companies, each named after the address of the relevant property.

The first company, 59 Constitution Pty Ltd, which has Miryam as the sole director and shareholder, paid $3.75 million for the Fayad family mansion.

On the same day, her second company paid $2.2 million for the six-bedroom house next door, which is now rented by another Fayad family member.

Maria and Sam Fayad have two other properties on the market at present. One of those is a nine-bedroom country estate at Matcham in the hinterland of the Central Coast. Described in the advertising brochures as a “remarkable, palatial residence” complete with tennis court and swimming pool, it was bought for $4 million in 2015. A caveat placed on the title in March indicates that Ayoub has an interest in the property.

Only recently, Miryam Fayad has become the director of two new companies, which happen to have the very same name as the addresses of the Matcham property and that of yet another Fayad house for sale in Constitution Hill.

Miryam Fayad did not respond to a request for comment.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.