Sebastian Monsour, 44, was charged with one count of fraud by detectives from the State Crime Command’s Financial and Cyber Crime Group on Thursday afternoon after a search warrant was executed at a Spring Hill address.

Mr Monsour is the chief executive officer of real estate development company Majella Group.

The accused has never been in business with Mr Newman who is a former Queensland premier and Brisbane lord mayor.

Mr Newman said his brother-in-law was entitled to his day in court.

“If it happens he has done something wrong he needs to search his conscience and fully face up to his responsibilities,'' he told Fairfax Media.

Detective Senior Constable Douglas Henderson said police seized a "number of documents and financial records and some electronic evidence".

Police would allege Mr Monsour accepted three payments, totalling $5 million, from an overseas investor.

Officers said the investor was told the money would be put into three separate investments but the investments allegedly did not exist at the time money was accepted.

“The money has gone into the business accounts and not gone to the intended investments it was supposed to go to,” Senior Constable Henderson said.

"It was three investment classes, one was like a future start-up type investments fund and the other was a diversified property fund and the other was a balanced property fund. None of the money went to any of those investments.

“We are currently under investigation as to where the money has gone but yes, it has gone.”

Mr Monsour allegedly had no authority, appropriate licence or credentials to manage investments on behalf of other companies.

Mr Monsour has held the role of chief executive officer role at Majella Group since 2011, according to his LinkedIn profile.

Mr Monsour was charged with one count of fraud at Brisbane Watchouse where his bail was withheld.

It is believed he will appear in Brisbane Magistrates Court on Friday.

Majella Group is an Australian-based multinational company which operates across a range of sectors including property development, technology, design and financial services.

The company has offices in the United States, Australia, China and the Philippines.

With Ruth McCosker