Graeame John Cropper is being held in a secure wing in the maximum-security section of Cessnock prison.

He appeared via video link in Tamworth Local Court where he was denied bail by Magistrate Roger Prowse – the second time since his arrest on May 11.

The court was told Cropper was “closely involved with the Salvation Army”.

“Within that work he was heavily involved with high-risk offenders through their release [from prison],” Solicitor Stephen O’Reilly said.

He said there was “an issue in relation to his involvement within the program” and there were “safety concerns within the prison system”, which had seen him moved into a secure wing.

He said "it makes his time in custody much more onerous” than it usually would be.

Mr O’Reilly also said they could raise the surety on offer to $1,500, and that Cropper had ties to Tamworth for 13 years.

Mr Prowse said if Cropper was in a secure wing already the risk is “mitigated”.

“I decline to entertain the bail application,” he said, adding it wasn’t “material enough to justify being a new circumstance”.

Cropper also pleaded not guilty to three fraud-related charges with a hearing set down for September.

Cropper pleaded guilty to having dishonestly obtained property by deception by selling a Holden Commodore station wagon.

Police allege the victim owned the car and Cropper made no payment for the vehicle before on-selling it.

Mr Prowse said the first change “doesn’t amount to a significant change” in circumstances needed for a second bail application to be heard and “the other change is a not a positive change, it is adverse change” in reference to the guilty plea.

“Bail continues to be refused,” he said.

Cropper is accused of dishonestly obtaining a financial advantage or causing a disadvantage by deception on three occasions between October 1, 2015 and May 11, 2017.

Detectives claim Cropper, 53, entered into an agreement to purchase a house with the alleged victim.

According to court documents, Cropper then caused a financial disadvantage by spending $34,000 cash which was the proceeds of the sale of a Harley Davidson motorbike they claim was “money originally to be used as part payment for the property”.

A second charge alleges Cropper was provided with a $20,000 cheque “as part payment for the property” but spent it instead.

Detectives then allege Cropper also spent $14,000 provided to him in a cheque from the victim.

Investigations allege the cheque was provided to Cropper to be used as a part payment for the property.

Investigators maintain there was no property purchased as part of the agreement.