The Irish Times reported in 2006, that in 1994, when Frank Fahey was a Senator, on a modest salary of £19,486 (€24,747), he became involved in establishing a hair and beauty salon business in Moscow involving an investment of over £200,000 (€254,000).[11][12]
Fahey has assembled a very extensive property portfolio. Some are registered in his own name while others are held in partnership with relatives of associates These are located in his native Galway city and county, County Clare, Limerick, Dublin, France, Belgium, Portugal, the United States and Dubai. Fahey also owns or has shares in, shops and development land as well as six houses and 10 apartments in Ireland.
Fahey owns a number of apartments in the centre of Brussels in partnership with suspended INBS manager Noel Harrington and Limerick developer Ger Clohessy. Mr Clohessy is a large Limerick property developer whose name is linked to an internal Irish Nationwide Building Society investigation into the handling of accounts at its Limerick branch,while Mr Harrington is the manager of an INBS branch in Limerick.[13]
He caused controversy in Galway after speaking at a seminar organised by 'Remax Auctioneers' held at the radison Hotel in January 2009. He spoke at the conference urging first time buyers to "buy now as houses prices were as low as they would go". House prices in Galway have seen a 20%-30% drop in the previous 18 months with little sign of the market stabilising. A number of people have questioned his judgement in the matter, as the seminar was organised by Remax Auctioneers and speakers were drawn from what could be seen as the "vested interests" in the property market in Galway. As of 2009, there were many people with negative equity on their properties, who had bought within the previous five years. A number of people have questioned the wisdom of the Fianna fail TD speaking at the seminar encouraging young people to buy now, despite many economists predicting further price drops in the housing market up to 2011 and 2012 and further exposing people to the danger of negative equity on their properties. Also speaking at the seminar was Bank of Ireland manager Pat Fleming, solicitors from Bell and Carroll and mortgage providers 'Simply mortgages'.[7][14]
Fahey was accused of and then denied saying that he had "no involvement" in the hairdressing salon. Nor had never made a secret of being involved, he said, and had travelled to Moscow "as an ordinary citizen to support the investors including my wife who were attempting to set up a hair salon there". He claimed that "the whole thing was part of a regional political campaign by a number of individuals to do damage to my integrity, character and good name".[15]