It is the same company he co-owned with his estranged wife, Pamela Fayed, who was allegedly cooperating with investigators into a criminal probe of the business.
Pamela Fayed, 44, was stabbed to death in a Century City parking garage on July 28. Investigators think that James Fayed may have had the motive to do it.
Fayed's attorney spoke after the arraignment Monday and said that prosecutors have yet to make a case against his client.
"He's only being detained because the Los Angeles Police Department has named him as a suspect in the murder of Pamela Fayed, but at this point, that's an uncorroborated, unsubstantiated allegation. No proof's been established to that. No charges have been filed on that case, and so, Mr. Fayed really ought to be released at this point," said attorney Mark Werksman.
Prosecutors allege that the killer's getaway car had been rented with James Fayed's credit card, which police found in his wallet.
Court papers reveal that Fayed was likely to of been ordered to pay about $1 million in spousal support to Pamela in a hearing set for July 29, one day after she was murdered.
James Fayed's legal team still maintains his innocence and says that the only charge he's facing right now is the one related to operating an unlicensed money exchange business.
Trial in that federal case is set to begin on September 30. His wife's murder investigation is ongoing. James Fayed is being held without bail at the Metropolitan Detention Center.