Celotti, who was beaten in the first round of the 100kg division of the judo in Beijing on Thursday, will return home to face an assault charge in Australia next month.

Celotti edged Cutajar out of the team by a single point, beating the Wollongong warrior at the Oceania Championship in March.

Cutajar admits he is no saint, having spent three years in jail for his part in an armed robbery in 1995, and was devastated by the news.

"It's the same thing as that swimmer (Nick D'Arcy) and the AOC contract was very clear about anything like that because I had to go through it very closely with my lawyers," 39-year-old Cutajar said.

"I can't believe he wasn't upfront with this and it has cost me my dream.

"I want to be recognised as an Olympian because that will help with funding for London 2012, when I will hopefully fulfil my dream."

D'Arcy and mountain biker Chris Jongewaard were not nominated for the Olympic team despite qualifying because they were facing criminal charges.

It was revealed yesterday that Celotti faced a charge of intentionally causing injury from an incident at the Lower Plenty Hotel, Victoria in November 2007 and was due to appear at the Heidelberg Magistrates Court on September 12.

Cutajar has turned his life around since being the cell-mate of serial killer Ivan Milat in Long Bay jail, and is a devoted family man with a degree from the University of Wollongong.

He has never denied his past wrongdoings, and will meet his lawyers in the next few days to discuss his next move.

"I had to be up front about (my past) with the AOC because of their rules," he said.

"I did what I did in 1995 and served my time (in jail) and I was honest with them right the way through.

"I knew everyone was watching me when I fought Matt for the (Olympic) spot and to find out he has hidden this (charge) has gutted me.

"I was the first reserve and I would have been on the first plane over there if (the judo) was on on Sunday."