Williams given access to $1m Hodson reward

Police and prosecutors signed off on a deal to grant Melbourne gangland killer Carl Williams access to a $1 million reward, an inquest has heard.

Andrew Hodson leaves the on-going Coronial inquiry

An inquest hears that Terence Hodson's son Andrew was identified as a suspect in his parents murder. (AAP)

Gangland figure Carl Williams was granted access to a $1 million reward while a contract killer sought indemnity for a brutal double murder in exchange for information about the deaths of a Melbourne police informer and his wife.

An inquest into the deaths of Terence and Christine Hodson, who were found shot dead at their Kew home in May 2004, has been told police were prepared to do deals with notorious criminals as they tried to solve the crime.

Williams, who claimed former drug squad detective Paul Dale paid him $150,000 to have Mr Hodson killed, was allowed to apply for a $1 million reward linked to the case.

The deal, signed by senior police and prosecutors, also meant Williams was immune from prosecution over the Hodson murders, former homicide squad detective Cameron Davey told the inquest on Monday.

Mr Dale and hit man Rodney Charles Collins were charged with the Hodsons' murder in 2009. But the charges were withdrawn when Williams was killed in prison.

Detective Senior Sergeant Sol Solomon said Collins had also tried to make a deal with police, including that he be indemnified over the 1987 murders of Dorothy and Ramon Abbey.

Collins also wanted to avoid prosecution for the Hodson killings and for his girlfriend to be given access to the reward, Det Sen Sgt Solomon said in a statement read to the inquest.

Det Sen Sgt Solomon said the deal was rejected by police.

Collins was later given two life sentences for the Abbey murders.

Mr Davey said police did not get to choose where evidence came from, and that Williams had given them information that had been corroborated.

"Williams was providing truthful information in relation to the Hodson murders," he told the Victorian Coroners Court.

"I'm not here saying he's a wonderful person."

Mr Davey told the inquest that a number of people, including the Hodsons' son Andrew, were treated as suspects.

"Andrew Hodson was also the subject of a thorough investigation," Mr Davey said.

"We did and still suspect that the killer or killers had knowledge of the layout of the house and security systems.

"But I don't believe he was personally responsible for the murders."

Mr Davey said Andrew Hodson, who had been associated with drug kingpin Tony Mokbel, may have accidentally released the sensitive information.

Police spoke to more than 100 people in relation to the deaths, particularly the people who had been named by Mr Hodson in his informer reports, Mr Davey said.

The inquest before State Coroner Judge Ian Gray continues.


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