An Israeli social worker has revealed that she did not make a statement to Victorian investigators for a decade because she was worried that one of Malka Leifer's alleged victims was in it for "the possible pay-off".
Ms Leifer, 55, is appearing in the Melbourne Magistrates' Court where she is fighting 74 child sex abuse charges, which include rape and indecent assault.
The allegations date back as far as 2004, when Ms Leifer was the head of the ultra-orthodox Adass Israel school in Elsternwick, and she has always maintained her innocence.
Her accusers are sisters Dassi Erlich, Nicole Meyer and Elly Sapper, who were students at the school while she was the principal.
Prosecutors are trying to convince a magistrate that there is enough evidence for Ms Leifer to face a criminal trial.
The three sisters have already given their evidence behind closed doors, but on Monday prosecutors called Chana Rabinowitz, a social worker who Ms Erlich confided in while she lived in Israel in 2007.
"I saw her a number of times around the time when she revealed this to me, and then I was in communication with Adass Israel," Ms Rabinowitz said, referring to the school.
The court heard Ms Rabinowitz, who lived in Melbourne for five years before moving to Israel, had come into contact with Ms Leifer at the school, where she had a number of private clients.
"[Ms Leifer] asked you to work with a few individual students and their parents," asked Ian Hill QC, who is defending Ms Leifer.
"Yes she did," Ms Rabinowitz said.
After the allegations against Ms Leifer came to light, Victoria Police contacted Ms Rabinowitz in November 2011 and asked her to give a statement.
But she declined, according to an email exchange read in court on Monday.
In correspondence to investigators, Ms Rabinowitz said that she was aware Ms Erlich and Ms Sapper were "trying to get this grant for victims of sexual assault, and had to make statements to the police".
"I'm not sure I want to go on record," Ms Rabinowitz wrote.
"I guess I'm a bit suspect that when someone is in something for the possible pay-off, then perhaps in the future they will think to get money from me as well. "
Ms Rabinowitz eventually made a statement in April this year, and on Monday said she did not specifically remember writing those emails.
"Had you been warned about not going on the record because they might come after you for money in the future?" Mr Hill asked.
"Yes," Ms Rabinowitz said, citing legal advice.
The court heard that Ms Rabinowitz had lost her notes from her sessions with Ms Erlich because her computer had "died".
"Whatever I have is in my head now," she said.
Ms Rabinowitz has since uncovered some emails between herself and Ms Erlich, which she described as full of "personal anguish".
During her evidence, Ms Rabinowitz appeared to be prompted by her husband on a number of occasions.
"I'd ask your husband might not prompt you. He clearly told you the date there. We heard it," Mr Hill said.
"Yes he told me," she said.
"You appreciate, Ms Rabinowitz that these are important matters and you're giving evidence on oath," Mr Hill said.
"Yes."
The hearing continues.
