Fred Krahe

Frederick Claude Krahe (6 November 1919 – 6 December 1981) was an Australian New South Wales police officer and detective.

Investigative journalists David Hickie and Tony Reeves name Krahe as the ringleader/organiser of a gang of "heavies" employed by developer Frank Theeman, who intimidated residents and assaulted protestors during the campaign against Theeman's high-rise development in Victoria Street, Kings Cross in the early 1970s.

In seven months in 1971–1972, the Varley-Burton car gang stole $1.5 million in cars.

He left behind a note stating: "I only hope that one day the truth comes to light about the people involved in the conspiracy to frame me," after the judge in his 1971 trial was quite willing to accept the involvement of Krahe and others in the car thefts and murder, but not Varley's innocence.

It is alleged that Krahe became a criminal for hire after leaving the police force.

Among the many rumours and allegations about him, Krahe is alleged to have murdered prostitute and police informant Shirley Brifman in 1972, after his corrupt relationship with her was exposed.

It is believed that Brifman's whistle-blowing was the true cause for Krahe's retirement from police work later the same year; the official reason given was that Krahe was "medically unfit".

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.

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.

Fergusson was under pressure from a prostitution investigation, and was rumoured to have been interested in talking to investigators.

It was widely rumoured that Fergusson was in fact murdered by Krahe.

The gang's chop shops began being raided in January 1972.

Alan Burton disappeared on 7 February 1972.

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.

Varley said he had been forced into the operation by police at gunpoint, and implicated dozens of CID officers in the scheme.

He claimed two policemen, Krahe and Cyril Roy Edwards, were looking to give Burton 'a hiding' on 7 February for stealing $20,000.

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.

Then, Varley said, shots rang out, and presumably Burton was murdered.

After the longest New South Wales murder trial to that point in history, Varley was acquitted of murder by the jury, yet convicted of manslaughter.

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."

Justice Issacs was unwilling to believe Varley was a coerced victim on any level and sentenced him to 14 years.

Varley screamed and berated the Judge as the sentence was read out, and as Varley's family tried to calm him, he was restrained by the same detective who had led the Burton investigation, Detective Sgt. RJ Douglass.

Asked if he had anything to say, he launched into a 10-minute speech of incredulity at the verdict and the harsh sentence, before concluding that he had no choice but to accept it.

He was paroled after six years, and steadfastly maintained his innocence.

Varley's case became something of a celebrated cause even after he was released, with even noted Australian physician Dr. Bertram Wainer championing him.

In that context, there have been repeated allegations that he was involved in the 1975 disappearance and presumed murder of anti-development campaigner Juanita Nielsen.

There have also been allegations that Krahe was involved in the disappearance and presumed murder of Griffith, New South Wales anti-drugs campaigner Donald Mackay, in 1977, although the allegation about the Mackay killing was made by notorious Melbourne criminal James Frederick Bazley.

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.

Jiggens is also a strong proponent of the theory that Krahe murdered Mackay with Keith Kelly, and that Bazley was a patsy.

Krahe allegedly did work for the infamous Sydney-based Nugan Hand Bank as a private investigator, assisting the bank in covering their fraudulent business activities and money laundering connected to Asian drug trade and the CIA.

The massive investigation into the murder of anti-drug activist Donald Mackay led to investigations of cash payouts from the family-run Nugan Fruit Company to local Griffith Mafia figures Antonio Sergi and Robert Trimbole.

John Laurence, a New South Wales Crown Prosecutor, launched an independent inquiry into the allegations in 1979.

Laurence concluded that New South Wales policemen had funded and protected the operation.

He named Fred Krahe and Cyril Roy Edwards in the report.

The New South Wales Premier Neville Wran ordered a further inquiry.

That inquiry recommended no charges be made.

Cyril Roy Edwards was murdered in 1986, on Tamarama Beach with a bullet to the head.

He was under investigation for drug corruption at the time.

In August 1987, Reg Varley killed himself.