The founder of the Australian Muslim Party is facing criminal charges after allegedly carrying out a lucrative fraud racket worth hundreds of thousands of dollars.

Political hopeful and western Sydney businessman Diaa Mohamed was arrested and charged with nine fraud offences in May following a lengthy and wide-ranging NSW Police probe.

The 35-year-old's case is due on Wednesday to come before Parramatta Local Court, where an additional drug supply charge will be laid.

It is understood the charge stems from cocaine allegedly found at Mr Mohamed's home during a search warrant. Police will also present him with further fraud charges.