The Victoria's Secret model"s former flame was before the Sydney District Court as he was accused of failing to repay a 123,000 dollars loan to lenders introduced to him by Kerr's mother, Therese. Earlier, Camilleri had used funds from his Asset Finance Services company account to buy Kerr gifts, including 10,000 dollars worth of plane tickets to New York and a grand piano.
Kerr, who now dates Hollywood heartthrob Orlando Bloom, broke up with Camilleri in 2004.
A jury heard Camilleri later used money owed to Winton and Charmaine Taylor from a short-term loan in December 2005 to pay his personal debts. His spending included a 25,000 dollars share in a Porsche and 5500 dollars in curtains for his Point Piper and Bondi homes.
Kerr"s mum introduced Camilleri and Taylors, and the broker feared that she would direct other referred investors to withdraw their funds if his fraud was disclosed. His defence barrister Stephen Hanley said Camilleri had been "too embarrassed" and "concerned" to tell the couple, because of their links to Kerr"s mum.
"He should have said there has been a huge mistake but he didn't," the Courier Mail quoted Hanley as saying. Camilleri has pleaded not guilty to one charge of fraud.