Chris Marco, who is on trial for fraud, allegedly told his victims he was an experienced private investor with exclusive financial opportunities, similar to fixed-term deposits, offering healthy returns.
But there were no investments, prosecutor Steven Whybrow says, and Marco, 67, dishonestly used clients' money to pay returns to other clients in an allegedly illegal operation.
"Marco held himself out as a leprechaun who could take people to the pot of gold at the end of the rainbow, but there was no pot of gold," Mr Whybrow told the Western Australian Supreme Court during his opening on Monday.
"He was very convincing, he was very good and he created an entire make-believe (world)."
Marco and his co-worker, Linda Anne Marissen, 57, who is also on trial, pleaded not guilty to 44 and 30 counts of fraud, respectively, on the first day of the eight-week trial.
"Marco is an illusionist and Ms Marissen was his assistant," Mr Whybrow said.
"Via word of mouth, introductions and accountants taking note of the seemingly good investment returns, Mr Marco came to meet and speak to a number of people."
Marco was allegedly given a total of more than $253 million by about 150 people across 327 instances between January 2010 and November 2018.
But the scheme was a "hungry beast" built on "flimsy foundations" and that was "taking on water" because it relied on ever-increasing amounts of investment funds to pay returns to clients, Mr Whybrow said.
By the time investigators froze Marco's accounts, he had just $12 million in cash with $711 million in cumulative guarantees, and the scheme would likely have toppled in three to four months, he said.
The trial will hear from seven complainants who gave Marco large sums of money, including accountants, a scientist and a super fund manager.
"They provided amounts of money for the purposes of investment based on Mr Marco's advice," Mr Whybrow said.
"It's the state's case that did not occur and money was paid into one of Mr Marco's accounts ... then used to pay the promised interest on other investments."
Mr Whybrow was careful to point out Marco paid all the money people were owed, but the payments "came with a hook" to entice the money back to his scheme.
About 78 per cent or $198.5 million of the money collected was returned to investors, six per cent was allegedly used to buy motor vehicles and property, eight per cent or about $21 million was transferred to Marco and his family, and four per cent was invested, Mr Whybrow said.
Marissen allegedly aided and assisted Marco in committing the crimes because she was aware the money was not being used for the purpose for which it had been collected, he said.
Mr Whybrow cautioned the jury about labelling the alleged offending as a Ponzi scheme, saying there was no criminal charge for this and the trial was about fraud.
The trial continues.
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