Exiled former Liberal MP Moira Deeming recoiled at the suggestion of being linked to Nazis during a Sunday afternoon crisis meeting called by her boss, Victorian Opposition Leader John Pesutto, last year, a court has heard.
Ms Deeming is suing Mr Pesutto for defamation, claiming he implied she had links to neo-Nazis.
The Federal Court heard on Tuesday a recording of a meeting between the pair, who were also joined by senior Liberal MPs Georgie Crozier and David Southwick.
The gathering came a day after Ms Deeming attended the "Let Women Speak" event, which featured international anti-trans-rights activist Kellie-Jay Keen.
That rally was gatecrashed by neo-Nazis, who marched on the steps of parliament and performed the now-illegal Nazi salute.
Ms Keen vehemently denies any associations with neo-Nazis.
The court was played a secret recording of a meeting called by John Pesutto last year. (AAP:Con Chronis)
The recording revealed Mr Pesutto began the meeting by telling Ms Deeming he had serious concerns around her attendance at the rally.
"The media see that [rally], they see [Nazis] attached to you, they see them attached to me," he can be heard saying.
"Now, we've got a problem, a huge problem now because people think, rightly or wrongly, that we walk in lock-step with Nazi protesters and Nazis.
"I'm getting clobbered, not just on social media. I'm getting messages from people now, and that will build, this is not going away this is actually going to, I think, intensify as a story."
But Ms Deeming, who was the then upper house whip, strongly refuted having any knowledge that the white supremacists would interrupt the rally.
"Very obviously, I'm not a Nazi and I don't support Nazis. They arrived just in black as far as I could tell, they were to the left."
"They're Nazis. They're insane," she said.
"They were not with that [Let Women Speak] group, they literally stood, the police let them stand on the other side of that pole and take a photo and then walk right through the crowd.
"I only saw them when they walked through the crowd. Everyone panicked."
'Are you accusing me of having Nazi links?'
Mr Pesutto then began to press Ms Deeming on whether she had any ties to the Nazis, at which point Ms Deeming asked: "Are you accusing me of having Nazi links?
"You're not going to find a single shred of evidence," she said.
"Obviously, I'm not a mind reader, maybe there's some secret Nazi somewhere, but absolutely no indication at all anywhere.
"My uncle is a Holocaust — was a Holocaust survivor. My husband's got Jewish people in his family. I'm part Maori, like, it's so insane to even worry about that."
Ms Crozier and Mr Southwick also used the meeting to express the concerns they had over Ms Deeming's association with "women's rights" activists who had expressed transphobic views.
Mr Southwick, a Jewish MP, said a social media post from anti-trans-rights activist Angie Jones stating "Nazis and women want to get rid of pedo filth, why don't you?" was offensive to his community.
"Don't you see the association? You are there on a couch with these people who've got a long history of saying stuff in the public domain which are pretty bloody offensive," Ms Crozier said.
"They're pretty full on and you are now associated with that through your own actions. We can't change any of that," the shadow health minister added.
Meeting was a 'shocking pile-on', lawyer tells court
Ms Deeming said that she would disavow the particular views of the women but "not the whole person".
"I'm treating the transgender laws as separate to the Nazi thing," Ms Deeming said.
"The Nazi thing, that was from my perspective, believe it or not, just so out of left field so that's easy to condemn, like just flat out."
Sue Crysanthou SC, who is acting for Ms Deeming, told the court it was clear her client's responses to Mr Pesutto's questioning made it clear that she was in no way associated with neo-Nazis or white supremacists, and that the behaviour of the MPs in the meeting was a "shocking pile-on".
The case, which started at the federal court in Melbourne on Monday before Justice John O'Callaghan, is expected to continue for two weeks and hear from senior Liberal Party members.
Mr Pesutto's barrister Matt Collins KC, is yet to commence his opening statement.