A Melbourne strip club owner who jumped up and down "like a monkey" and called his business partner a whore in Russian, as he urged another man to beat him, has pleaded guilty to assault and drug offences.

Key points: Genna Schvarts pleaded guilty to drug trafficking and intentionally causing injury

Genna Schvarts pleaded guilty to drug trafficking and intentionally causing injury The County Court heard he urged another man to bash his business partner Robert Srbinoski

The County Court heard he urged another man to bash his business partner Robert Srbinoski Schvarts's barrister, Phillip Dunn, said his client had paid a "heavy price" for his actions

Genna Schvarts, 50, pleaded guilty in Victoria's County Court to three charges including trafficking a drug of dependence and intentionally causing injury.

The charges span over two incidents.

The court heard that Schvarts was part-owner in the now-defunct Exotica Gentlemen's Club on King Street in Melbourne with three other men when things began to sour in 2018.

The group agreed to sell the business, valued at $700,000, and Schvarts introduced the club's majority shareholder, Robert Srbinoski, to two men from New South Wales in May.

But he was unaware that the two men had planned to extort Mr Srbinoski and threaten him with violence if he didn't hand over his 50 per cent of the business to them for $50,000.

"This is how this is going down, you take the 50 and you sign everything over," one of the men said to Mr Srbinoski.

"You sign everything over and we bring the 50 to your house."

"That's not how this is going to go down," Mr Srbinoski said.

Business partner beaten

According to court documents, when the men began standing over him, Mr Srbinoski turned to Schvarts and said: "Ok Genna, I realise what is happening now, but I don't understand why."

The court heard that when he was accused of being in on the ruse, Schvarts lost control and began "jumping up and down like a monkey".

Schvarts called Mr Srbinoski a whore in Russian and accused him of making up rumours.

One of the 'buyers', Brendan Bradshaw, then began bashing Mr Srbinoski, who pleaded with them to stop.

"Genna knows I've had extensive brain injuries, so you don't want to make it a murder," he told Mr Bradshaw.

"Hit him over the head as much as you want," Schvarts responded.

Mr Srbinoski suffered a fractured eye socket and nose and required surgery.

Bradshaw today pleaded guilty to extortion with threat to inflict injury and intentionally causing injury.

Police find cash, drugs and taser

About a month before the assault, Victoria Police's Drug Taskforce raided Schvarts' home and found almost 280 grams of ecstasy and 73 grams of cocaine.

They also found a taser and about $240,000 in cash, which are believed to be proceeds of crime.

Schvarts's barrister, Philip Dunn QC, said that when his client's life began to falter, he turned to drugs.

"Drugs are not a problem just for young people," he said.

"Drugs are quite pernicious.

"He took drugs, got involved with the wrong people.

"He fell off the rails."

Mr Dunn said Mr Schvarts, who has spent more than 500 days in pre-sentence detention, had acted spontaneously.

He said his client was charged on the basis of egging on Mr Bradshaw, who bashed his former business partner, and had paid a "heavy price".

"It includes the loss of his reputation and it's very nearly caused the loss of his marriage," Mr Dunn said.

"But the real Genna Schvarts is not a man jumping up and down like a monkey.

"The real Genna Schvarts is a better person than that."

He asked the court to consider sentencing Schvarts to time served and a community corrections order.

The prosecution submitted that time served was in the range of appropriate sentencing.