Roy Tashi told the Supreme Court he went to Mr Gutnick for help after he lost his $500,000 job in 2010 and faced having to sell his family home.
"I was stretched financially," he told the court. "Mr Gutnick appeared to be sympathetic to my situation. I trusted him."
Mr Tashi said Mr Gutnick convinced him to buy shares in a resources firm mining gold in Canada. He said Mr Gutnick said he'd secured shares at a "bargain price" but couldn't be involved as he was a director and chairman of the company.
Mr Tashi said despite being cash-strapped he arranged for his company to buy $1 million worth of shares on a payment plan, in hopes of making a quick profit.
Mr Tashi said he didn't assess the risk because he "relied on the goodwill of Mr Gutnick" and had no reason to believe he had an interest.
"I knew Mr Gutnick as very generous, someone I had respected.
"This, to me, was not a typical investment. It was an opportunity to retrieve some of my financial standing in a relatively short period of time.
"I wouldn't have bought them if I knew he was selling them to me at market price, not bargain price," he said.
Mr Tashi is suing Mr Gutnick for $1 million plus damages, saying he was misleading and deceptive, and didn't make proper disclosures.
He alleges he paid 15c a share more than Mr Gutnick, who had a stake in the firm that did the deal, and the shares now had no value.
Mr Gutnick denies any liability.
The case continues.
Heraldsun.com
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