Michael Fitzgerald has been cross-examined for the past two days in a Warrnambool Magistrates Court committal hearing.

Former long-time Framlingham Aboriginal Trust (FAT) administrator Geoff Clark, his wife Trudi and two of their sons, Aaron and Jeremy, have been charged by Victoria Police major fraud and extortion squad detectives with a total of 1170 charges after seven-year investigation Operation Omega.

Mr Fitzgerald told the court he recalled a conversation with Geoff Clark after the FAT boss was ordered to pay civil compensation to Carol Stingel.

"He expresses clearly there was no way he would pay the compensation," he said.

"His assets were for him and his family."

Geoff Clark never paid Ms Stingel's $20,000 compensation or her $300,000 legal bill and in June 2009 was declared bankrupt.

Mr Fitzgerald said Mr Clark told him he was sick of all the "community stuff" after being axed as the chairman of national organisation ATSIC and that he had given his life to the community but it had given him nothing but trouble.

He said he also overheard a conversation in the FAT office between Geoff Clark and Jeremy Clark relating to a loan agreement being in place to pay Geoff's legal fees.

"I heard a conversation between Geoff Clark and Jeremy Clark about a loan on three houses," he said.

Legal fees are a key component of the police case as Geoff Clark accumulated $900,000 in fees during a series of legal actions in the 2000s.

Police alleged $549,744 was paid to lawyers from a number of Aboriginal groups to lawyers.

The court has heard that in 2007-08 Geoff Clark was being pursued over the civil debt to Ms Stingel which resulted in him being declared bankrupt.

Police allege a number of FAT shares were obtained dishonestly by Geoff Clark and through the course of a bankruptcy he transferred shares to Jeremy and Aaron Clark and those were backdated, false documents created and false affidavits sworn

The court has heard Geoff Clark also made false documents and gave perjury evidence in relation to four properties during his bankruptcy proceedings.

Police allege Geoff Clark continued to be involved in the management of a number of Aboriginal organisations while being disqualified from doing so as a result of his bankruptcy.

Mr Fitzgerald also said a solicitor told him Geoff Clark had sought to have a loan agreement back dated, that Violet Clark resigned from the FAT board after Aboriginal Affairs Victoria produced an audit report relating to the trust's financial affairs and Mr Fitzgerald admitted he had been an ardent support of Geoff Clark until the late 2000s.

He said he felt compelled to act when he found out Trudi Clark was still being paid in 2009 despite not working at the trust since 2002.

Police claim Trudi Clark received 160 payments totalling $115,921.60.

Mr Fitzgerald said about the same time he discovered the rent for an industrial shed in Cooper Street, Warrnambool, owned by community group Kirrae Whurrong Community Incorporated was going into the account of private company Maar Natural Products (MNP).

MNP was a company owned by members of the Clark family.

Mr Fitzgerald said the allegations were so serious that he had to act.

Claims made by Mr Fitzgerald eventually led to the seven-year Victoria Police major fraud and extortion squad investigation Operation Omega and the charges that were laid last year.

Cross-examination of Mr Fitzgerald is expected to finish before lunch today with AAV official Ian Hamm next, followed by bookkeeper Allan Thomas.