A pub owner who wanted to avoid a tax debt was told by his adviser Philip Whiteman that a “favourable” administrator should be appointed to his business to ensure there would not be an investigation into his company, a court has heard.

Mr Whiteman arranged for the appointment of controversial insolvency practitioner Glenn Crisp to a company that was trying to avoid paying its creditors, pub owner Nick Murray told public examinations on Monday into the business activities of Mr Whiteman and his alleged phoenixing and fraud ring.

Mr Crisp has not been accused of any wrongdoing by liquidators. He made headlines in 2015 when he claimed in a court case that photos of him "in compromising positions with strippers" taken during a Yarra River boat cruise by sex industry stalwart Maxine Fensom caused him to lose his job at RSM Bird Cameron.

Liquidators are investigating allegations that more than $100 million was ripped off the tax office and others in Mr Whiteman's phoenixing scam.

Mr Murray told the examinations that after receiving a bill from the tax office for unpaid taxes and superannuation he had followed Mr Whiteman’s advice to "phoenix" his pub the Exchange Hotel in Horsham by moving its assets into a new entity leaving the debts behind.