Michael Ibrahim’s plan to buy into Sydney brothel Stiletto revealed
Michael Ibrahim was a busy man. Not only was he smuggling 1.8 tonnes of drugs and millions of cigarettes to Australia, he was also the king of the side hustle. Brenden Hills reveals how Ibrahim planned to strike it rich, including exploring a plan to invest in a famed Sydney brothel.
Police & Courts
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Michael Ibrahim had big plans to set himself up financially and become a Sydney big shot before he was arrested over a billion dollar drug and tobacco smuggling sting.
This was going to be his time.
He was going to “make millions” — and the projects he had in mind were big ticket and involving some of the biggest names in Sydney.
One of the ways he explored to achieve this was to become a silent investor into the famed Sydney brothel, Stiletto, by dropping $5 million into the Camperdown establishment, according to documents tendered in court.
However, the deal for Michael Ibrahim to buy into Stiletto never eventuated.
The younger brother of Kings Cross identity John Ibrahim was also was manoeuvring to get into the development industry by linking up with members of the Obeid family and construction identity George Alex, the documents said.
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But the plans were permanently dashed on Wednesday when Michael was sentenced in the Sydney District Court to a maximum 30 years in jail after he pleaded guilty to an undercover police sting where he attempted to smuggle almost two tonnes of drugs into Australia.
Judge Dina Yehia sentenced Michael, 41, to a minimum 18 years in prison for the shipments that included 1.8 tonnes of MDMA, 136kg of cocaine and 15kg of ice from Europe into Australia in 2017.
He also smuggled millions of packets of illegal cigarettes into Australia.
Michael and about 20 others were arrested in August 2017 in raids across three continents as a result of the investigation that began in March 2016.
It was revealed Michael had fallen for the charms of an undercover police officer who caught Michael and some of the biggest names in the Sydney drug trade by guaranteeing safe passage of the narcotics past border authorities.
The undercover handed almost two tonnes of drugs and an all star cast of underworld figures to the Australian Federal Police.
The investigation saw police tap Michael’s phone.
The calls revealed that despite potentially earning tens of millions from the drug and tobacco imports, Michael was also pursuing several side hustles.
Police launched the investigation into Michael in March 2016. It was only two months after he was released from prison following a 10 year sentence for the manslaughter of Robin Nassour.
After losing so much time, Michael had some catching up to do when it came to his bank balance.
He borrowed from those close to him, including a six figure sum from his older brother Fadi, and got to work setting up his life, tendered court documents said.
He rented a house in Vaucluse with his partner Caitlin Hall after moving out of an inner city apartment and began tapping into his contacts all over Sydney to get an income stream.
One of those opportunities presented itself on May 17, 2017, when he got a tip that well known Sydney gambling identity Eddie Hayson was planning to buy back Stiletto after being forced to sell it in 2015 under the pressure of millions in debts.
According to the tendered court documents, Michael called a close associate, who cannot legally be identified, and the pair hatched a plan to loan Hayson $5 million, which would make them the financiers behind the high profile punter’s re-entry into the brothel game.
Michael opened the call by telling the associate: “Apparently, f**kin’ Eddie’s buying that f**kin’, ah, Stilettos back.”
He further explained: “There’s four of them buying it … on paper it’s five million they’re saying they’re buying it for.”
Michael told his associate the information was relayed to him by an accountant who knew about the prospective deal.
Michael’s associate said he knew the accountant “personally” before suggesting: “Why don’t we front up the money so then he owes us the money to buy it?”
Michael responded: “Where are we gonna get f**kin’ $5 million from?”
“I can borrow on my house…,” the associate said before suggesting he could convince another friend to extend his mortgage to contribute funds.
The associate suggested the money not be given directly to Hayson, but funnelled through a lawyer first.
Michael agreed to the plan and said they would visit the accountant the following day to discuss the plan.
However, there is no evidence to suggest the scheme went ahead or that Mr Hayson ever bought back into the brothel.
Yesterday, Mr Hayson said he had never spoken to Michael Ibrahim and the deal did not exist.
"I have never spoken to Michael Ibrahim," Mr Hayson said.
"Never texted him, never met him, never had any dealings with him."
According to business records, Stiletto is owned by a company known as Geiko Enterprises, the director of which is Bellevue Hill businessman Andrew Wiley.
The records said Geiko registered the Stiletto name in January 2019.
Mr Wiley could not be reached on calls to his phones yesterday.
Michael was also aiming to enter the development game with members of the Obeid family.
In November 2016, Ibrahim instructed his underling Ryan Watsford to set up meetings with Moses Obeid, the son of disgraced ex politician Eddie Obeid, according to one call that was tendered to court.
Watsford was captured on other tapped phone calls, which were tendered in court, boasting about meeting Obeid and others high flyers at the Dover Cafe in Rose Bay.
During a call on November 3, 2016, Watsford claimed to have had a conversation with Moses about Michael. “Why, what did he say about me?” Michael asked.
Watsford replied: “ … He wants to help you. He’s always wanted to, he likes you a lot. Top bloke.”
Enforcing his standing in the pecking order, Michael said: “Trust me, mate. I can help him out more than he can help me out, mate.”
Two days later, Obeid was the topic of conversation again on a tapped call between Watsford and Michael, which was tendered in court.
Watsford talked up their connection with the Obeids.
“The amount of people Obeid knows and what he’s going to do for us is fantastic, okay?” Watsford said to Michael.
Michael responded: “What are you going to speak to Obeid? I want to come speak to him. ”Watsford assured Michael that “We’re doing it tomorrow” and then went on to talk about the development sites, which he said was part of the proposed deal.
“Okay, Bankstown 800, Warwick Farm 1400, Liverpool I’m unsure of,” Watsford said.
Michael was impressed: “There’s 10 years worth of work there.”
Watsford concurred: “Yeah, so we’re set. We just need the money. Worst comes to worst I’ll go get a million bucks from Rodney. I’ll go get it straight away.”
It was a reference to Rodney Adler, the former HIH director who was jailed after the company collapsed. By 2016, Adler was back in the finance game and lent money to Watsford under commercial arrangements, tendered court documents said.
When contacted, Mr Obeid declined to comment.
However, it is understood Mr Obeid’s relationship with Watsford was when the latter was an Eastern Suburbs real estate agent.
In a call on May 27, 2017, Michael was recorded by police discussing going into business with construction identity George Alex.
During the call, Alex told Ibrahim of issues he’d had with competitors.
When Alex said he should have got Michael involved earlier, Ibrahim responded: “I’m your best asset.”
“I’ll be the bad guy, the rough one,” Ibrahim told Alex.
Later in the call, Ibrahim told Alex “Any drama, you tell them I’ve got Mick with me” and “We’re a good tag team”.
Michael will be eligible for parole in August 2035.