"It should have been taken out," he said.
The two men were remanded at large with a hearing set for a nominal date of August 6.
At the opening of the trial, Crown solicitor Harry Mallalieu alleged the two men had worked together to fake the theft of a 2001 Ford Courier ute and a jet boat in order to collect the insurance money and use the ute to rebuild another vehicle from its parts.
The utility was the property of a customer who had dropped it off at Dillon's panel and spray painting business in Wanganui to be repainted.
The jet boat, which belonged to Dillon and was up for sale, was attached to the vehicle and parked outside his business on Heads Rd when it was allegedly stolen in October, 2008.
Counsel for Dillon, Roger Chambers said in his closing address the Crown case was nothing more than a series of stories in a collective imagination.
"There has been complete fabrication by a witness which has tried to put a sinister gloss on the defence's case," Mr Chambers said.
He called into question the credibility of one Crown witness, who he said was a career criminal and an incorrigible liar.
"Yet my client is a successful businessman of financial means with an impeccable reputation ... he was stunned when he learned of the theft of his jet boat and ute from outside his work ... he even gave the CCTV footage to police to help them find the thief."
Mr Chambers quoted English poet TS Eliot, who said "between the idea and the reality falls a shadow".
"There are certainly too many shadows in this case."
Mr Brosnahan said there had been far too much inference and guessing in the Crown case.
"You have been asked to guess," he told the jury.
The whole case had become a monkey puzzle tree, he added.
"The Crown clearly has not established the case."
Judge David Cameron reminded the jury they needed to exercise caution about the witness with the extensive criminal history.
"If you are left unsure and do not accept some of the evidence you have heard you must decide on not guilty verdicts."