The fake crime syndicate, the suspect, and a promise to make evidence 'go away'

ACT police concocted a fake crime syndicate to entice information from Steve Fabriczy, 69, who is accused of murdering Irma Palasics during a violent 1999 burglary.

Joseph Vekony, 68, is also accused of murdering Irma Palasics, and was submitted on Monday to the ACT Supreme Court.

He pleaded not guilty to charges including murder, aggravated burglary, assault occasioning actually bodily harm and unlawfully confining a person. Fabriczy has also pleaded not guilty to murder and other charges.

Undercover police officers began interacting with Fabriczy in October 2022, according to documents tendered to court.

"This involved operatives building rapport with him and then engaging him to conduct work for the operatives' fictitious criminal syndicate," police documents allege.

Police claimed Fabriczy "voluntarily, and eagerly" participated in fake crimes with undercover officers.

They said operatives told the 69-year-old a corrupt cop connected to the syndicate could help him if he was ever investigated by police.

Fabriczy met with the head of the fictitious syndicate in late 2023, police said.

He was allegedly told his DNA had been linked to Mrs Palasics' death in 1999.

The corrupt officer could make this evidence "go away", Fabriczy was allegedly told. But only if he was totally honest about the alleged incident.

He initially denied any involvement, police said.

Other than being Hungarian, there is no known connection between the alleged murderers and the Palasics couple, police said.

Police alleged that Fabriczy said he was living in Melbourne when an "associate" asked him to help in a Canberra burglary.

The targets had cash in their house, believed to be worth tens of thousands of dollars, Fabriczy allegedly said.

According to police, Fabriczy's story changed during the course of the meeting. He allegedly first claimed he never entered the house.

Eventually he allegedly admitted he went into the house to help Vekony.

"I just went into the house to help him out ... No, I didn't tie them up, he tied them up ... I didn't hurt the lady," Fabriczy allegedly said.

"The truth is I went into help and that's how they got my DNA.

"I had nothing to do with the murder or whatever it is that happened. I don't know what happened to the lady."

Fabriczy insisted he did not tie up Mrs Palasics or her husband Gregor Palasics, according to police.

"It's a burglary that went the wrong way you know what I mean," Fabriczy allegedly said.

Police said he stated the exact amount that was stolen, claiming Vekony took it from the house and then shared the proceeds.

Fabriczy allegedly claimed he did not know that Mrs Palasics had died.

"[Fabriczy] repeatedly stated that he was ashamed about his involvement in the incident," police said.

Fabriczy was extradited to the ACT on September 21, 2023.

Police said he was interviewed on September 26.

According to police, Fabriczy repeatedly denied being involved in Mrs Palasics murder or remembering what happened.

"I have nothing to do with assaulting or murder. No. No. I swear by God," he allegedly said.

"Oh definitely ashamed, very ashamed, but I had nothing to do with her murder."

Fabriczy also allegedly claimed first meeting "Joe Vekon" - believed to be Joseph Vekony - in Austria.

"He described Joe as a violent person and that Joe's ex-wife has told him that Joe has hurt animals. He implied that Joe was responsible for the assault," police said.

Vekony was interviewed by ACT police in late 2023, a police document tendered to court said.

He denied any involvement in any of the burglaries, and claimed he had never been to Canberra, the document said.

Vekony claimed Fabriczy named his as his co-offender "because he was jealous that [Vekony] had a family and he did not", according to police.

The Palasics were allegedly burgled multiple times across two houses.

Police said they were burgled in 1997 and 1998 in a Red Hill home.

Mrs Palasics allegedly pulled a balaclava off an offender's head in the 1998 incident.

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By the time of the 1999 alleged burglary and murder, the couple had moved to McKellar.

DNA from the balaclava and a water jug from the 1999 incident were matched, police said.

They said they linked this DNA to Vekony.

Police said when they interviewed him, Vekony "was not able to offer an explanation for the presence of his DNA at the McKellar residence, repeating that he had never been to Canberra".