Michael's longtime friend Andros Georgiou has told the British publication that Fawaz is seeking a multi-million pound payout (also multi-millions in U.S. dollars) from the money the star left when he died last year.
Georgiou, 54, told The Sun on Sunday, "Fadi is now seeking a significant pay-out of George's money, and his attempt has come out of the blue.
"This is not something his family ever imagined they would have to deal with.
"But Fadi has made no secret of how much he wants money."
As Radar has reported, Michael's death on Christmas Day 2016 at age 53 shocked the world.
It was learned that his boyfriend Fawaz had called 911 after he found the singer "cold" and "blue" in his bed in Michael's London home.
Hairdresser Fawaz, 43, as Radar readers know, was grilled for weeks by authorities over Michael's untimely death, until police finally issued a statement clearing him of foul play. A coroner's report attributed his death to natural causes.
Now, according to Georgiou, Fawaz is seeking maintenance for the lifestyle to which he became accustomed during his seven year relationship with Michael.
And it is understood that his demands include the right to remain in the ritzy Regent Park house where Michael had allowed him to live.
Michael's pal contended that Fawaz's alleged money grab was sparked by his failure to win a big money contract for a tell-all book about his life with the "Faith" singer.
"It has not gone unnoticed that he has been touting around for a book deal and has spoken to several publishers, who have made offers," Georgiou told The Sun.
The late singer's friend claimed that Fawaz was expecting to make a million pounds, equivalent to about $1.3 million U.S. dollars on a Michael memoir.
But instead, according to Georgiou, he was probably looking at a £50,000 offer (about $65,000).
"That is not going to keep up the lavish life he lived alongside George for very long – and I'm sure he can now see his comforts disappearing," Georgiou pointed out.
Earlier this month Fawaz wrote on his Twitter page, "Please forgive me for what I am going to do."
He then deleted his account.
Georgiou told The Sun, "In light of his demands, that request for forgiveness makes sense."
It's not the first time someone close to Michael has blasted Fawaz. The Wham star's former boyfriend Kenny Goss was outraged that the hairdresser showed up late to Michael's March funeral.
As The Sun has reported, Michael's will may not be read for a further six months as accountants figure out where the singer's money is.
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