Adam Cranston believed Plutus was legit

At a NSW Supreme Court hearing on Wednesday, Cranston's barrister John Stratton SC said any illegally diverted funds were only discovered well after the acquisition. 

Pleading not guilty in the case, Cranston claims be believed Plutus could not pay back taxes legally owed because large sums of money had been embezzled by one of the company's masterminds Peter Larcombe, now deceased.

Plutus was also the victim of extortion and blackmail in February 2017 by former employee Daniel Rostankovski and members of an outlaw bikie gang, Mr Stratton said.

"That threatened Adam Cranston and others involved in the management of Plutus with threats of actual violence."

His sister Lauren Cranston, who has also pleaded not guilty, denied being involved in or aware of any conspiracy at Plutus, telling the jury that she was just a simple employee at the firm.

"She was not part of any conspiracy, she did not know about it, she did not promote it, and she did not participate in it," said her barrister Troy Anderson SC.

She claims she was just following instructions from her brother and two other accused Jason Onley and solicitor Dev Menon.

Mr Anderson said his client believed Plutus was a successful business and was aware of allegations money had been taken by Mr Larcombe and others, but that she did not question what was going on.

"Lauren Cranston is not someone with a curious mind. She would turn up, she would do her job, she would be paid, she would bitch and moan about her bosses, she would go home," Mr Anderson said.

The fifth accused in the case is Patrick Willmott.

All five are facing two charges of conspiring to defraud the ATO and agreeing to deal with the proceeds of crime. Over $105 million in PAYG and GST payments was allegedly diverted from the tax office and instead used for fund lavish lifestyles for the co-conspirators including the purchase of cars, homes and planes.

The hearing in front of Justice Anthony Payne continues.