A Queensland lawyer has denied having a “corrupt relationship” with former Ipswich mayor Paul Pisasale, which included paying for dinners and sex workers, in exchange for his endorsement of a property development, a court has heard.

Salvatore “Sam” Di Carlo, 66, pleaded not guilty to official corruption at the start of a Brisbane District Court trial on Wednesday.

On Thursday, Crown Prosecutor Sarah Farnden told the jury in 2016 Mr Di Carlo, who was “someone who had a friendship with Paul Pisasale”, had become involved in a “business arrangement” with the mayor, and a Melbourne property developer, Christopher Pinzone.

“The crown alleges that this was a corrupt relationship between these three men,” she said.

The jury heard Mr Pinzone was proposing to turn 14-hectares of land in Yamanto in Ipswich into a commercial development, but conversations with the owner had stalled and “no real progress” was being made.

Ms Farnden told the jury it was at this point Mr Di Carlo and Mr Pinzone allegedly began offering and providing Mr Pisasale gifts and services in return for his promotion of the project within council.

“Various benefits in the form of paying for dinners and drinks or hospitality at restaurants, organising and paying for the provision of sexual services from prostitutes, giving him some cash on occasions,” she said.

The jury heard Mr Di Carlo and Mr Pinzone had also allegedly arranged for Mr Pisasale to “take some sort of a share or some sort of future profit” from the development.

Former mayor ‘kept out of the paperwork’

Ms Farnden told the jury the alleged agreement was Mr Di Carlo would receive a 10 per cent stake and then Mr Pisasale would receive part of this portion, but he would be excluded from any official documentation.

“The crown case is, it was organised in that way to keep the mayor out of the paperwork,” she said.

“This demonstrates that the arrangement was corrupt.”

The jury heard Mr Pisasale did not have sole “decision-making power” at the Ipswich City Council and the project was not approved during his time as mayor.

Despite this, Ms Farnden told the jury the mayor of a city council “ought not be receiving or agreeing to receiving gifts or benefits from developers or those associated with a development application” without declaring them on the council’s registry of interests.

“These benefits were given or offered to [Mr Pisasale] on account of him generally promoting this development … and doing what he could do in his capacity as mayor to assist the development application,” she said.

Ms Farnden told the jury they could find Mr Di Carlo guilty of being a principal offender or as a party to an offence which was committed by Mr Pinzone.

Crown case ‘based on inference’

Mr Di Carlo’s defence lawyer Saul Holt told the jury allegations his client was involved in a “corrupt favour” or “a great bribery” were “plainly wrong” and based on inferences, not “direct evidence”

“This case is, as we say, utterly circumstantial,” he said.

Mr Holt said there was “absolutely no doubt” Mr Pisasale, who he described as having “the most spectacular fall from grace in Australian politics”, had promoted the development.

“This is what he did – promotion of projects,” he said.

Mr Holt said there was no dispute that sex workers were arranged for Mr Pisasale, as this was a longstanding “preferred activity” he engaged in, but simply helping organise it, was not corrupt.

“There is not a shred of evidence [Mr Di Carlo and Mr Pinzone] ever paid for it,” he said.

‘Fictions cobbled together’

In regards to the accusations about “bags and bags of cash” being given to Mr Pisasale, Mr Holt told the jury the evidence is “literally non-existent” and was “firmly in dispute”.

“These examples … are fictions cobbled together with innuendo and speculation,” he said.

It is also not in dispute that Mr Pisasale had meals paid for by Mr Pinzone, but Mr Holt told the jury it was a “simply bizarre” allegation as these had been disclosed.

Mr Holt also told the jury there was no “side deal” to provide Mr Pisasale money from the development, and Mr Di Carlo’s arranged share was “entirely lawful”.

The trial is expected to run for three weeks and is set to hear from several witnesses including former and current Ipswich City Council staff Crime and Corruption and Australian Federal Police Officers.

The jury heard Mr Pisasale may also be called to testify.