The property guru who made millions telling investors they could make millions by investing in risky property deals, faces no other charges and is now in the clear.
It was accused Mr Kaye deceived St George Bank out of $17.7 million in finance for a St Kilda project called Oasis.
Mr Kaye was charged in December 2005 and was supposed to start a three month trial in July this year.
However it has been reported a key witness wanted to change his evidence, which suggested Mr Kaye did in fact seek legal advice about a document at the centre of his St George case.
The Commonwealth of Public Prosecutions determined that because of this new piece of evidence, there was "no reasonable prospect of a successful prosecution".
Mr Kaye’s property seminar business collapsed with debts of $60 million. Sites controlled by Mr Kaye included the Coburg High School (recently sold to boutique builder the the Hamton Property Group), former Tip Top Bakery site in Coburg (since sold to Westpoint which also collapsed, and recently sold to Gold-Coast developer Source Property Group), as well as sites in Richmond, the CBD and interstate.
In 2004, the Federal Court found Mr Kaye made false and misleading representations in advertisements for his "$1 million challenge" in September 2003.