Henry Kaye has had a charge of dishonestly obtaining a financial advantage by deception charge withdrawn this week.
The property spruiker accused of encouraging investors into risky deals, faces no other charges.
It had been alleged the businessman deceived St George Bank out of $17.7 million allocated for a St Kilda project, Oasis.
Mr Kaye was charged in December, 2005 and was supposed to have started a three month trial this July.
However with a key witness now wanting to change evidence – a claim at the centre of the bank case – the Commonwealth of Public Prosecutions determined “there was no reasonable prospect of a successful prosecution”.
The defendant’s seminar business closed with debts reportedly around $60m.
Land controlled by Mr Kaye includes Coburg High School (which recently traded to Hamton Property Group), the former Tip Top Bakery in Brunswick and parcels in Richmond, the CBD and interstate.
In 2004, the Federal Court found the executive made false and misleading representations in advertisements for his “$1 million challenge” a year earlier.