Mr Skalkos, a former bankrupt, is alleged to have committed the act with a 19-year-old at Mascot on February 4 between 10am and 10.10am.

The 83-year-old pleaded not guilty in the Downing Centre Local Court on Monday.

Nicknamed "Earthquake" due to his thunderous personal style, Mr Skalkos has long been a controversial figure within the Greek community.

In 2004, he was bankrupted with debts of $25 million. Creditors included the Australian Tax Office and prominent members of the Greek community, who had won substantial defamation payouts from Mr Skalkos.

Mr Skalkos was also sued by his longtime barrister Stuart Littlemore, QC, over $300,000 in unpaid fees.

In May 2012, Mr Skalkos was cleared on a charge of assaulting a plumber by pointing a loaded shotgun at him when the workman demanded payment.

Mr Skalkos pleaded guilty in Waverley Local Court to a charge of failing to keep the shotgun and ammunition secure. He was convicted and fined $1200 with $81 court costs on the firearms charge.

Mr Skalkos' company, FL Press Pty Ltd, publishes the Greek Herald and several other ethnic newspapers and magazines.

He will reappear in court on September 14.

With Kate McClymont