Former Ipswich Mayor Paul Pisasale has told a Brisbane court he lied about being a private investigator to demand money from the former lover of a masseuse and escort he had befriended, because saying he was the mayor would be "intimidation".

Key points: Paul Pisasale, Yutian Li and Ipswich solicitor Cameron McKenzie are all facing extortion charges over the alleged incident

Paul Pisasale, Yutian Li and Ipswich solicitor Cameron McKenzie are all facing extortion charges over the alleged incident Mr Pisasale confirmed he had met his co-accused Yutian Li through a friend and Brisbane barrister Sam Di Carlo

Mr Pisasale confirmed he had met his co-accused Yutian Li through a friend and Brisbane barrister Sam Di Carlo The court heard Mr Pisasale was allegedly "going to punish" Ms Li's ex-boyfriend but said that did not imply hurting him

Mr Pisasale, 67, took the stand in his extortion trial before the District Court in Brisbane to defend why he demanded money from the former lover of a Chinese woman he had only known for a short time.

The court heard Mr Pisasale felt sorry for Yutian Li and only wanted to help her incur the fees she was entitled to, in finding out the truth about the man's marriage to another woman during their relationship.

Mr Pisasale, Ms Li and Ipswich solicitor Cameron McKenzie are all facing extortion charges over the alleged incident.

Mr Pisasale, who also called the alleged victim, Xin Li, pretending to conduct a health survey, said he lied because he "didn't want to have to go through" the fact he was the mayor of Ipswich.

"I was trying to find out the truth and I really didn't want to say I was the mayor of Ipswich, because that would have been intimidation … and it had nothing to do with Ipswich," Mr Pisasale told the court.

But he denies that his actions amounted to blackmail or extortion.

'I could see that she was just so nervous'

Mr Pisasale — who the court heard is still married and living with his wife in Ipswich — confirmed he had met his co-accused Yutian Li through a friend and Brisbane barrister Sam Di Carlo.

"Sam Di Carlo said he had a girl that was going to give me two hours of massage — he's a barrister in Brisbane — I've only just known him in the last couple of years," he said.

"He [Mr Di Carlo] just told me he'd organise a girl for me and she was very nice and she was new to the business."

Yutian Li, also known as Angela, was charged with extortion. ( AAP: Darren England )

Mr Pisasale told the court he had met with Ms Li, who is also known as Angela, and said at first she was very scared and very quiet.

"We sort of spoke for a while, and I could see that she was just so nervous … and I asked her what she was doing in Australia and she started to explain to me that she met this taxi driver and he hurt her very badly," he said.

Mr Pisasale said that Mr Li had lied to her and made promises, and he could see that she was very upset, so he arranged to have another dinner with her a week later where she told him more about the situation.

"He [Mr Li] contacted her and said he was dying, that he had a growth on his spine and that he wasn't going to survive — she said he told her that he didn't want to marry her," Mr Pisasale said.

"She was so upset — you could just see that her whole world had been destroyed.

"I am just that sort of person — I was just so angry that someone would do this to someone like that."

'Life had been destroyed'

Mr Pisasale said he continued to see Ms Li and kept in contact with her over the phone.

When asked by his barrister Lincoln Crowley about a phone conversation he had with Ms Li where Mr Pisasale confirmed he "was going to punish" her ex-boyfriend, he said that had not implied hurting him, but rather getting him to pay the cost she was owed.

"As far as I was concerned Angela's life had been destroyed — she came all the way over here, had no money, no friends, divorced her husband, and was left high and dry," Mr Pisasale said.

"All he [Mr Li] had to do was reimburse her for the costs — that's all he had to do."

He said all he was trying to do was help her resolve the matter so she could "get on with her life".

'I never, ever saw it as extortion'

Earlier, the court was played the final part of a three-hour interview between Crime and Corruption Commission (CCC) investigators and Mr McKenzie, during a 2017 search warrant at his office.

Mr McKenzie was asked by Mr Pisasale to write a formal letter demanding Mr Li pay the costs or be taken to the Federal Court.

In the recording, Mr McKenzie was heard telling investigators there was a fine line between what constituted a letter of demand and extortion, but said it was just a bluff and denied he ever thought it was a threat.

"I never, ever saw it as extortion — I saw it as compensation for a financial loss," Mr McKenzie said in the recording.

He also admitted that Mr Pisasale had an influence over him when drafting the letter.

"He's the mayor of Ipswich — he's done a lot for me and my business, referring clients — so of course he's going to have an influence over me," Mr McKenzie said in the recording.