Controversial Indigenous leader Geoff Clark, who is facing hundreds of fraud-related charges, allegedly claimed he "had to get money from elsewhere" because he was only earning $40,000.

Mr Clark, 67, the former head of the disbanded Aboriginal and Torres Strait Islander Commission, was once one of Australia's most senior Aboriginal leaders.

He and members of his immediate family are facing 1171 fraud-related charges following a major police investigation into more than $2.48 million in allegedly stolen funds meant for Aboriginal communities in Victoria’s south-west.

Michael Fitzgerald worked alongside Mr Clark as his right-hand man for at least eight years before he reported the alleged corruption to police.