Melissa Caddick's husband has told a Sydney inquest he previously believed his wife was a diligent, successful and honest financial advisor, but has come to understand she was "a fraudster".
Caddick, 49, vanished from their Dover Heights home in Sydney's eastern suburbs in November 2020, soon after it was raided over allegations she was running a multimillion dollar Ponzi scheme.
During the raid, 21 officers from the Australian Securities and Investment Commission (ASIC) and Australian Federal Police seized items, including expensive jewellery, clothing and documents, during their 12-hour search.
An inquest into Ms Caddick's suspected death has heard the alleged fraud amounted to between $20 and $30 million.
Her husband, Anthony Koletti, has told the inquest he did not help her disappear and has denied he had any knowledge of her financial dealings.
On Friday, under cross-examination by Dean Jordan SC, for ASIC, Mr Koletti agreed that he continued to believe that Caddick had done nothing wrong after her disappearance because he believed she was a diligent, successful and honest financial advisor.
"How did you eventually come to understand that, in fact, Ms Caddick was a fraudster?" Mr Jordan asked.
"By paying attention to court proceedings and listening to Her Honour," Mr Koletti replied.
"You now accept Ms Caddick was fraudulently pretending to be an honest and diligent financial advisor?" Mr Jordan asked.
"Yes," Mr Koletti said.
"You now accept that … you, too, were deceived by Ms Caddick into believing she was an honest and diligent financial advisor?" Mr Jordan asked.
"Yes," Mr Koletti replied.
In a July 2021 statement, Mr Koletti alleged his wife died as a direct result of ASIC's "negligence, cruelty and inhumanity" during the search of their home.
Asked by Mr Jordan whether he stood by that "serious assertion", he initially claimed he would wait for the outcome of the inquest, but then said he did maintain it.
Mr Jordan suggested that continued assertion demonstrated a "complete loss of objective perspective" in relation to ASIC.
"I suggest your maintenance of a very serious allegation, that allegation, without any proper foundation, shows that you have completely lost the plot in relation to what you think about the ASIC investigation," Mr Jordan asked.
"I don't believe so," Mr Koletti replied.
Mr Koletti agreed the search warrant was "justified" and said he had "no major concerns" with the conduct of the AFP.
Under cross-examination by lawyer John Sutton, representing ASIC investigator Isabella Allen, Mr Koletti agreed there had been major changes in his life in both emotional and material respects since his wife vanished.
He agreed an investigation had to occur.
"I put to you, the search warrant … had to happen and that your suggestion Ms Allen or indeed anyone from ASIC was any part of what you've described as negligence, cruelty or inhumanity, is you searching for someone to blame," Mr Sutton said.
"That's incorrect," Mr Koletti replied.
During this line of questioning, Deputy State Coroner Elizabeth Ryan addressed the brother of Caddick, Adam Grimley, who was sitting in the public gallery.
She said she was finding his facial expressions "dramatic" and "distracting".
"I will ask you to restrain yourself and if you're unable to, I will ask you to view the proceedings in the adjoining courtroom," Magistrate Ryan told him.
Mr Grimley stood up and walked out.
Mr Koletti eventually accepted that at all times during the raid, Ms Allen acted in a "professional, perhaps distant, manner" towards the couple.
He had previously claimed that he, Caddick and her son were denied food, water and medical attention for 14 hours during the raid.
However, the court has heard he made his wife several coffees, she made a protein smoothie, and they were allowed to roam around the premises freely, including accessing the kitchen.
Mr Koletti said he now disagrees with the assertion of food, water and medical attention being denied.
The inquest, before Deputy State Coroner Elizabeth Ryan, has run for two weeks.
It was scheduled to conclude on Friday, but has been running over time and will now return for a further two days of hearings in November.
