A whistleblower at the centre of a $2.48 million fraud case claims he felt compelled to act after discovering the wife of the Framlingham Aboriginal Trust administrator was still being paid seven years after she left her job.

Michael Fitzgerald gave the evidence during cross-examination in a committal hearing in the Warrnambool Magistrates Court on Monday.

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 a seven-year investigation named Operation Omega.

Police say Trudi Clark worked part time as a secretary while her husband was the trust administrator.

She started in 1979 and resigned in 2002 but between May 2003 and May 2011 she received wages although she was no longer working.

Police claim there were 160 payments totalling $115,921.60.

Mr Fitzgerald said in cross examination by barrister Tim Smurthwaite that he was told by book keeper Wendy Hernan in 2009 that Mrs Clark was still being paid.

He 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 as the senior member of staff at Framlingham outside the Clark family that he had to act.

He said he went to Violet Clark, who was a member of the FAT board of management.

Mr Fitzgerald said he visited a real estate agent, saw documents about the shed rental, including the title, and found out details relating to the $600 paid to Trudi Clark each fortnight.

"The matters were so serious that the board of management ought to have been alerted," he said.

Mr Fitzgerald said he went to Violet Clark because she was the person on the board he most respected because of her ethics and values.

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.

During cross-examination on Tuesday Mr Fitzgerald said he recalled a conversation with Geoff Clark after he 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."

Mr Fitzgerald said Mr Clark also told him he was also 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.

The former trust worker also admitted to doing weekend work, such as house maintenance, and being paid about $10,000 cash over a period of 10 years.

He agreed the receipt of that money without paying tax was improper.

Magistrate Charlie Rozencwajg did not allow further questions about whether Mr Fitzgerald's wife or daughter had received similar payments.

Mr Fitzgerald told the court he also took notes after two meetings with board members in January and March 2010, one with Violet Clark and another with Violet Clark and Lionel Harradine, during which fraud allegations were raised.

The court heard that Mr Fitzgerald said Violet Clark did not want other board members at those meetings because she viewed the board as compliant, she did not want information leaked and that other board members would not go against Geoff Clark because they were too scared of him.

Mr Fitzgerald said he usually worked about 10 hours overtime a week and at one stage he received a water tank for his work.

"I thought (accepting) that was more than reasonable," he said.

The committal hearing continues.

Earlier: Police claimed four members of Framlingham's Clark family have been involved in a conspiracy which has led to 1171 charges in relation to a $2.48 million fraud case.

Former long-time Framlingham Aboriginal Trust 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 after a seven-year investigation named Operation Omega.

A committal hearing started on Monday which is expected to last three weeks in the Warrnambool Magistrate Court before magistrate Charlie Rozencwajg.

In a summary of the case, prosecutor Justin Lewis said the charges related to 16 alleged events and schemes which were conducted by members of the Clark family between 1998 and 2016 with the case involving $2.48 million.

Framlingham Aboriginal Trust (FAT) was allocated land via the Lands Act 1970 and included a commercial arm Kirrae Whurrong Community Incorporated (KWCI) as well as the Brambuk Cultural Centre at Halls Gap and the Maar Land Council (MLC).

Geoff Clark and his family were involved in the trust from 1979 and he, wife Trudi and sons Jeremy and Aaron have held roles within the organisation.

The first alleged event related to legal fees owed to solicitors Coadys by Geoff Clark.

In a series of legal actions he accumulated bills of $900,000 and it's alleged $549,744 was paid to lawyers from FAT, KWCI, Gariwerd Enterprises and the MLC.

The court was told it was alleged the funds were dishonestly obtained by Geoff, Trudi and Jeremy to benefit Geoff Clark.

The alleged second event involved the purchase of an eel licence in 2009 for $68,000 by Maar Natural Products, a private company owned by Trudi, Jeremy and Aaron Clark.

The court was told that between 2013 and 2015 payments of $100,000 were made directly to Geoff Clark for others to operate that licence but no payments were made to FAT.

The third event related to the alleged transfer of FAT shares which were allocated in 1971 under the lands act for people to vote on community matters

It was alleged that a number of 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 was told.

The fourth alleged event related to Trudi Clark working part time as a secretary while Geoff Clark was the trust CEO, she started in 1979 and resigned in 2002 but between May 2003 and May 2011 she received wages although she was no longer working.

Police say there were 160 payments totalling $115,921.60.

Those payments were authorised by Jeremy and Geoff Clark, the court heard.

The fifth event related to maintenance on property owned by Geoff Clark - a block at Wangoom, a house at Halls Gap and two houses at Purnim.

Police allege that FAT paid for bills relating to those properties between 2006 and 2018.

In 2007-08 Geoff Clark was being pursued over a civil debt by Carol Stingel and he declared bankrupt in June 2009 and made false documents and gave perjury evidence in relation to those properties, police alleged.

The sixth event related to boarding fees while Geoff and Trudi's youngest son Jidah was undertaking a law degree at Melbourne University.

Police allege three payments were made for a total of $14,174 from KWCI.

The alleged seventh event related to Geoff Clark receiving unauthorised payments from KWCI for consultancy services.

In 2005 Clark's position as chairman of ATSIC ended and it was alleged that 16 $1000 payments were made to Geoff Clark between August 2005 and March 2006 for consultancy but, according to police. no consultancy was provided.

Mr Clark is also alleged to have received two Christmas bonuses totalling $5000 and in 2009 a false reimbursement for $4000.

The alleged eighth event related to the purchase of a tractor and stone crusher through a grant for $267,135 in 2006. The tractor was registered in Mr Clark's name.

In 2009 the tractor was used by Maar Natural Products to do upgrading works on private land in mainly south-east South Australia generating income of $91,975 with a significant amount going to Maar Natural Products.

Event nine related to Aaron and Trudi Clark, in Ballarat and South Australia respectively, receiving electrical goods, including a TV and fridge valued at $5163, and two water tanks and plumbing works for $7647.

Event 10 related to the alleged defrauding of federal funding made available to Brambuk for Aboriginal housing repairs and maintenance

Police claim that inflated quotes were provided which were further inflated before they were accepted.

False invoices were issued and paid, the court was told.

Money was received to construct a deck worth more than $100,000 at the Clark family home at Framlingham, half of which was funded through Brambuk and the rest by FAT, police claimed.

It's also alleged that in July 2009 the remaining $10,000 of unspent maintenance funds were spent on improvements to Aaron Clark's house in Ballarat.

Event 11 related to rent of an industrial shed in Cooper Street, Warrnambool ,which was purchased for $80,000 by KWCI, which the FAT committee allegedly knew nothing about.

In 2009 there was rent of $1563 a month which was paid to the Clark company account of the Maar Natural Products.

In 2010 it's alleged Geoff Clark made admission to his right-hand man Mick Fitzgerald and FAT committee member Violet Clark about the shed and payments were redirected to KWCI.

In event 12, KWCI owned a three-bedroom house in Smith Lane, Allansford, which was rented for $600 a fortnight. It was alleged that Geoff Clark personally collected rent from the property between April 2009 and May 2011 Geoff Clark totalling $16,200.

Event 13 related to the alleged transfer of funds from FAT to KWCI.

It was alleged that Geoff Clark made an unauthorised transfer in May 2011 of $400,000, described as wind farm management, from FAT tro KWCI.

Event 14 related to the sale of cattle valued at $7206.91 through agent Landmark which on November 4 went into the account of Maar Natural Products, which was not authorised by the FAT committee

Event 15 related to false returns about the Maar Land Council in 2013, '15, '17 and 18 by Jeremy Clark declaring there were no funds held when in fact the accounts held significant funds from the Birregurra-Paarare pipeline.

Event 16 related to Geoff Clark continuing to be involved in management of FAT, KWCI and Maar Land Council while disqualified from doing so as a result of his bankruptcy.

The prosecution also alleged the four Clark family members engaged in a criminal conspiracy to obtain property and/or financial advantage by deception.

The hearing resumes on Tuesday.

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