A Victorian Supreme Court judge has found property spruiker Henry Kaye did not hesitate to lie during a court case in which a doctor was suing him for more than $1.7 million and recommended he be investigated by the Tax Office.
Justice Emilios Kyrou said Mr Kaye was an untrustworthy and unreliable witness who had been evasive in the witness stand.
But the judge also declared Gennady "Gary" Braude was an unreliable witness who made up conversations.
"He (Mr Kaye) made long repetitive speeches, reframed some of the questions in cross-examination in order to avoid them and did not hesitate to lie when it suited him," Justice Kyrou said in his judgment handed down on Tuesday. Advertisement
"The defendant (Mr Kaye) spoke very rapidly when giving evidence and the level of detail he provided strongly suggests that large parts of his evidence were rehearsed.
"Some of his evidence was also exaggerated and grandiose."
Justice Kyrou dismissed Dr Braude's claim against Mr Kaye and rejected Mr Kaye's counter-claim.
The judge said the evidence showed there was a case to be investigated by the Tax Office about whether both men failed to comply with their obligations under taxation laws.
In Mr Kaye's 2005 and 2006 tax returns, he did not declare any income and in his 2007 tax return he declared income of $24,312.
Justice Kyrou said he found that Mr Kaye received payments totalling $409,354 between November 8, 2004, and December 6, 2006.
The judge said the evidence disclosed the possibility that companies controlled by Dr Braude might have claimed business expense deductions for items which were later included in the amount Dr Braude claimed as a bad debt reduction in his 2009 tax return.
Justice Kyrou said that while making no adverse finding against the men about their tax affairs, he would refer a copy of his judgment and the relevant evidence in the case to the Tax Office.
Dr Braude had sued Mr Kaye after claiming he gave the cash-strapped get-rich quick salesman almost $690,000 between November 2004 and April 2007 but it was never repaid.
The doctor and property developer told the court he paid for Mr Kaye to go on holidays to Noosa, Portsea and Thailand, and even gave him a cheque for $1500 for Mr Kaye's girlfriend to give to her husband after the property spruiker's business empire collapsed owing more than $40 million to about 3500 investors.
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