Spiritual group used follower's loans on 'luxury' trip and property, court hears

A northern NSW spiritual group has been accused of using millions of dollars it borrowed from a former follower to pay for business class flights, a tax debt and buy property.

Dinah Klinge is seeking $2.55 million from the group referred to in the NSW Supreme Court as "the fellowship".

Ms Klinge says she loaned the fellowship that amount between 2008 and 2016 on the understanding it would be repaid.

The defendants listed in the matter are Hermes Far Eastern Shining, Infinity - Forms of Yellow Remember and Fellowship of the Esoteric School of Higher Learning.

Lawyers for Ms Klinge have argued that these groups operate as one interchangeable entity.

Drew Porter, also known as Showme Showers, Salsa Headrock Junior and Mobius Anthanor Barnaby are also listed as defendants.

Ms Klinge's representative, Gregory O'Reilly, told the court Ms Porter was the spiritual leader of the fellowship.

"Members were expected to place their entire confidence and trust in her," he said.

"Ms Porter and Ms Junior knew the plaintiff's position was one under which she would be entirely trusting of their assurances."

The defendants deny liability to repay Ms Klinge, arguing the repayment terms were "hopelessly vague", and that various entities were deregistered at the time and could not have entered into a contract with her.

Loaned money used for luxury trips

According to its website, Hermes Far Eastern Shining is "dedicated to the creation of unique esoteric energy products grounded in the gnostic science attributed to Hermes Trismegistus".

It sells products associated with its beliefs, including water-filled wands and energy houses.

Ms Klinge's statement of claim includes $450,000 loaned to the fellowship in 2008 to cover an overdue tax debt, as well as $600,000 loaned in 2014 for "a number of urgent financial matters".

The claim states the defendants knew Ms Klinge was getting money from her mother to cover building costs at her own home and approached her for the 2014 loan.

Ms Klinge also claims Ms Porter approached her in 2016 and asked her to liquidate $500,000 from a government bond scheme, which Ms Klinge agreed to do on the grounds it would be repaid.

Mr O'Reilly told the court some of the money was used by Ms Porter and her daughter to fly business class on a "luxury" trip to the United States for fellowship duties.

Ms Klinge also claims she lost ownership of a commercial building in Tyalgum's main street after she drew against the mortgage and then defaulted following a series of financial arrangements made by the fellowship.

Mr O'Reilly said his client's decision to lend money to the organisation "demonstrated the extent of the hold they had over her".

He said she was "told all sorts of things" about how money would be obtained to repay her, including assurances about equity in properties, and "big overseas deals".

"She just accepted what she was told and the explanation lies in the nature of the relationships and extreme level of trust and that it was wrong to express any doubt."

The plaintiff claims Ms Junior, under the direction of Ms Porter, signed a letter in 2020 acknowledging the loans and agreeing to repay them over a three-and-half year period using money from the sale of their products and remortgaging their properties.

But defence lawyer Jon Cronin told the court the provision of large sums of money by the plaintiff to the fellowship demonstrated she was "being frivolous or imprudent with her money".

The defence argues that the case is prejudiced Ms Klinge's delay in bringing the matter to court, which has hampered their ability to source supporting evidence.

Judgement has been reserved, to be delivered at a later date.