Fadi Ibrahim allegedly drew down $1 million on his eastern suburbs home loan to help younger brother Michael pay for part of an 800-kilogram shipment of methamphetamine, it can be revealed.
The cash allegedly wove its way through Sydney's underworld, being laundered through Commonwealth Bank branches, handed over in a bag inside the Dover Heights home of John Ibrahim's son Daniel and allegedly "washed" by a wannabe entrepreneur who was brutally punished by Michael when he skimmed $30,000 to pay rent.
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Members of Ibrahim family to face court
Eight people, including members of Sydney's Ibrahim family, will face court accused of taking part in an international drug syndicate that was trying to import almost two tonnes of MDMA and other drugs into Australia.
The details about Fadi's involvements, outlined for the first time in a police statement of facts tendered in court, come as Fairfax Media reveals the photo that Michael circulated of the punishment meted out to alleged minion Jaron Chester.
Michael, 39, allegedly shaved Mr Chester's head, plucked out his eyebrows and circulated photos to his associates, calling Mr Chester "fat dog Oompa". Fadi added that he was one of the "rats" feeding off the Ibrahim family's scraps.
In the photo of a terrified Mr Chester, Michael can be seen in the mirror smiling.
Fadi and Michael were arrested in Dubai on Monday as part of an unprecedented operation across three continents related to the importation of almost $1 billion of MDMA, cocaine and ice.
They were arrested with Mustapha "Fairy" Dib and Steven Elmir in late night raids at Dubai's plush Jumeirah Lakes Towers complex and marina. Three men were arrested in the Netherlands and 11 people in Sydney.
Police allege that Michael two-timed between rival Sydney drug syndicates, facilitating importations with a business partner, known as MW1, who is now a key police witness.
The first syndicate included Ahmad "Rock" Ahmad of the notorious Ahmad crime family, Mr Dib and convicted drug smuggler Hassan "Faks" Fakhreddine.
The trio allegedly imported from Hakan "Little Huks" Arif, who fled to Dubai while on bail in 2010 and is the right-hand-man to wanted drug smuggler Hakan "Huks" Ayik.
Police allege Mr Arif sourced drugs from the Netherlands through Nejmi Saki, 41, a Dutch-Turkish national living in Dubai.
The second syndicate was helmed by the Ahmad family's bitter rivals, the Elmirs.
Fadi narrowly survived a shooting as he sat in a Lamborghini outside his Castle Cove mansion with his girlfriend in 2009.
The lavish home, with marble floors and 16 security cameras, was sold last year and he moved to Dover Heights, four streets away from older brother John Ibrahim. Their homes were among 30 properties raided on Tuesday but John was not charged.
Despite his considerable wealth, Fadi allegedly drew down $1 million against his property in April.
He allegedly transferred $800,000 to Mr Chester and another man, Toby Lesniewski. They, in turn, allegedly withdrew cash to give to Michael.
On May 21, while Daniel was overseas, Michael allegedly met Mr Dib, Mr Ahmad and Fakhreddine at his nephew's home to hand over the $1.12 million for MW1's share in an 800-kilogram importation of MDMA.
On one occasion during the laundering process, Mr Chester was told to withdraw $200,000 in cash from Commonwealth Bank's Martin Place branch but he only withdrew $170,000, keeping the rest so he could pay rent to his parents. The punishment from Michael came two days later.
Mr Chester, 34, describes himself online as a mining and finance entrepreneur but others have told Fairfax Media he was a broke "black sheep" from a prominent Bellevue Hill family.
He was allegedly brought into the fold by Rose Bay real estate agent Ryan Watsford, a friend of John Ibrahim and alleged co-conspirator in drug and tobacco importations.
Leading criminal barrister Charles Waterstreet, who is representing Mr Chester, said that his client was a "stooge acting under extreme duress" who feared for his life.
He said the eyebrows were taken as "trophies" by Michael Ibrahim. Despite this, Mr Chester was denied bail.
Mr Lesniewski was arrested at Sydney Airport on Thursday night as he arrived on a flight from Dubai.