Journalist David Hickie and others have also alleged that when they were both on the New South Wales force, Krahe and Ray "Gunner" Kelly were involved in the protection rackets that fed on Sydney's then illegal abortion industry.
[2] Detective Superintendent Donald Fergusson, Krahe's protege and one-time partner, was killed by a bullet from his own service revolver in the lavatory of his office at Sydney's Police Administration Center in Campbell Street.
Put on trial for the murder, his partner Reg Varley claimed Fred Krahe received the majority of the $1.5 million, and killed Burton for stealing.
After Varley objected, Krahe kicked the one-legged man's crutch out from under him, assaulted him and took him along to pick up Burton, who was dragged out of eyesight.
The Judge, Justice Issacs, was more than willing to acknowledge that, in his words, "One of the most disturbing features of the case was that not only the operation carried out under the nose of the motor squad but that it received the active co-operation of certain corrupt members of the police force who gave protection to the gang by being paid bribes periodically."
Bazley is himself widely believed to have been paid to kill Mackay by infamous Griffith Mafia figure and drug dealer Robert Trimbole.
Author John Jiggens claims Fred Krahe was responsible for dispensing, through his Fairfax Media newspaper connections, the rumour that Mackay had not been murdered, but instead ran away with a woman who was not his wife.
[11] An investigation by New South Wales Corporate Affairs led to obstruction, fraud and conspiracy charges over secret Nugan Hand accounts.
The charges were laid against multiple Nugan employees and family, including now ex-detectives Fred Krahe and Keith Kelly.
It was alleged the two had provided stock shares belonging to Frank Nugan to members of their own families, and also to some associates (described as drunken thugs), then brought them to a board meeting for a vote.
This was an effort to outmanoeuvre a shareholder attempt to expand control of Nugan Fruit (in reaction to the legal advice of the board's independent auditor), by exploiting a complicated loophole in Australian corporate law regarding minority voting rights.
[13] A prostitute and police informant, Shirley Margaret Brifman (usually known as Marge), ran a brothel in a flat at Potts Point, with up to fifteen girls.
She made the following claims about Fred Krahe; that he: On 4 March 1972, Brifman was found dead in her flat in Clayfield, apparently having committed suicide by barbiturates.
In 1985, several police officers, who had served in the Sydney CIB in 1972, told David Hickie it was rumoured Krahe had gone to Brisbane and forced drugs down her throat with a tube, assisted by a Queensland policeman.
Blisset showed little regard for the journalists who publicised allegations against Krahe, writing that they should, 'show respect for all the good he did and not rewrite scandalous rumours to satisfy some salacious minds'.
[16] Lenny McPherson himself, giving testimony in 1983 at the Juanita Neilsen inquest, told the court, 'I didn't like Fred Krahe.
[17] It was at this inquest that McPherson strongly denied telling two police officers, one Commonwealth, one New South Wales, that he'd heard that Krahe had murdered Mrs. Neilsen, an allegation that was quoted initially by journalists Barry Ward and Tony Reeves in an article in the National Times.