Stephen Larkin at the Downing Centre Local Court in 2006. Credit:Peter Rae A Fairfax investigation has found that Mr Oliver, 75, a former boxer and Kings Cross debt collector, suffers severe cognitive impairment. He is under the care of the Brown Nurses Ministry which, according to its website, is committed to "caring for the disadvantaged and the marginalised of our society." Meanwhile, Larkin has been busy using a serious flaw in the legal system to empty the bank accounts of at least four victims. He has presented an invoice to his victims, claiming they owe him money. He then signed an affidavit which fraudulently claimed that he has personally served them with a court order. He then obtained a default judgement against these victims. The first thing they knew about the fraud was when their money had gone and it was too late. By law the financial institutions are not allowed to advise their clients that their accounts will be depleted under the order of the courts.

Statue of St Michael the Archangel, which Stephen Larkin claims he gave to auctioneers. In February this year Colleen and Colin Vickers were shocked to discover $15,234 had gone from the bank account of their auction house Vickers and Hoad. When they contacted their bank, NAB, they were told the bank had to comply with a garnishee order from the Local Court of NSW. Months earlier Larkin served a letter of demand on the Vickers alleging they owed him $15,000 for not returning three statues he claimed to have left with them to sell. "We thought the letter was a hoax," said Mr Vickers who had banned Larkin from doing business with their auction house in 2004 for buying goods at auction and then refusing to pay. Larkin's letter of demand provided no receipts to prove that the auctioneers had his goods. His only evidence was a photocopy of three statues, one of which was St Michael the Archangel which Mr Vickers said was "taken at an unknown location and not on our premises".

On December 30 Larkin returned to court to register his statement of claim, demanding $15,000 plus a $234 court filing fee. He swore an affidavit claiming he personally "served" the defendants at their business address in Young Street, Waterloo. But the auction house was closed over the Christmas period with a sign attached to the locked gate to that effect. On February 9 Larkin obtained a default judgment against the Vickers and a week later the money was gone. Larkin has repeated this pattern with at least three other victims. In December property developer Tony Merhi​ received a letter from Westpac advising that Larkin had been given a bank cheque for $59,234 following a garnishee order signed by the Waverley Local Court.

Larkin told the court he had personally served Mr Merhi at his home in Castle Hill but Mr Merhi had moved house four months earlier. Giovanna Fragomeli​ and her partner ​Avdo Tabakovic​, from OzBid Auctions in Lilyfield, are also victims. Last year Larkin got a judgment against them for $19,000 but only managed to empty their account of $1495. Earlier this year he had another go – this time for $30,000. Luckily, the account was empty. He falsely alleged he personally served Ms Fragomeli at a property which has been a construction zone for the last 18 months. Another victim is fellow vet Dr Ron Lloyd who also had his bank account garnisheed. The pair had known each other for 30 years. "I thought he was a friend and look what he did to me," said Dr Lloyd. Larkin's victims are furious and frustrated. The police have declined to pursue their complaints, their credit ratings have been affected, and more money has been outlayed having the judgments reversed.

Mr Merhi has spent a further $80,000 attempting to bring Larkin to justice. A fortnight ago Magistrate Lisa Stapleton issued a bench warrant for Larkin's arrest for contempt of court. He was given bail and the matter will return to court at on May 20. Mr Merhi acknowledged he had "no hope" of getting his money back."This guy is a dangerous character who manipulates the legal system. Morally and ethically I cannot stand back and let him steal from other people." His victims are agitating for the law to be changed. The Vickers' solicitor Warren Wells, has written to the Attorney-General suggesting that the law should be changed to give account holders five business days to challenge a garnishee order. In 2007 Larkin was sentenced to 16 months' weekend detention after pleading guilty to defrauding the former Macquarie Bank director Bill Moss of $38,050. He was also convicted of giving false evidence under oath. In 2004 the NSW Supreme Court banned Larkin and his son Jordan from operating a finance broking business for 20 years and 10 years respectively. The Larkins had offered to find loans for desperate people but instead had pocketed their establishment fees.

Larkin, who did not return Fairfax Media's calls, will be in court next week over the traffic offences.