"Teflon Terry" ... Terence Reddy was one of the last people to see Michael McGurk alive.

"Teflon Terry" ... Terence Reddy was one of the last people to see Michael McGurk alive.

MEET the man known as the ''Black Prince'' and ''Teflon Terry''.

Terence Reddy was one of the last people to meet the last-resort lender Michael McGurk before he was murdered, and one of his closest confidants. He also worked for McGurk's company Bentley Smythe, arranging loans at extortionate rates to desperate people.

Mr Reddy has kept a low profile since McGurk's murder a year ago, but yesterday he appeared in the NSW Supreme Court, where he was accused of orchestrating a mortgage fraud scheme along with the head of the Bandidos bikie gang, Felix Lyle.


The alleged fraud dates back to 2005 when he was running a company called Invest One.

Mr Reddy is accused of forging documents and signatures to defraud Perpetual Trustees Victoria of up to $539,500 in October 2005, then spending it on top-of-the-range BMW and Mercedes sports cars.

Mr Lyle was also accused of benefiting from the scheme.

Neither man faces criminal charges, as the evidence has emerged as part of a civil lawsuit brought by the lender.

The accusations against Mr Reddy were made by the barrister Brian Skinner. Mr Skinner's client, Ann-Marie Menzies, is the owner of the Stanmore house Mr Reddy allegedly used as security for the loan. She accuses Mr Reddy of forging her signature, of using her identity in the application to the bank without her knowledge as well as forging a certificate of title for her home.

Mr Reddy declined to comment outside court yesterday. He will appear as a witness tomorrow. Yesterday his lawyer, Vatche Janoyan, applied for an adjournment on the grounds that Mr Reddy ''may be incriminated by giving certain evidence''.

Perpetual Trustees Victoria has sued Miss Menzies, alleging she is liable to the bank for the loans and that she has falsely claimed to have been the victim of identity theft.

Miss Menzies has conceded she knows Mr Lyle, having previously put her home up as security for his bail when he was facing criminal charges.

In 2004, Mr Reddy was named in a separate legal case as having lent $250,000 worth of $50 notes to a convicted heroin dealer. The dealer on-lent the money for a property development. The money was seized as the proceeds of crime. Mr Reddy failed to appear in court to respond to those allegations.