A Swansea man told an acquaintance that he believed police had planted a cartridge case which linked him to the firearm used to kill Shane Geoffrey Barker.
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Linda Evans of Campbell Town was giving evidence in the trial of Cedric Harper Jordan, 71, and Noelene June Jordan, 68, of Swansea who are accused of the murder of Mr Barker on August 2, 2009.
Ms Evans said she had run into Mr Jordan in the street in Swansea about Easter last year.
She said she had asked Mr Jordan about Noelene.
"He said that she was not coping and then he started to tell me some of his theories," she said.
"He said that after he and Noelene had been charged that someone at the police got Rachel [ the Jordan's daughter] and taken her to a shipping container where bullet casings had been found underneath and that someone had planted them there."
"Did he say who?," crown prosecutor Emily Brett asked.
"The police," Ms Evans replied.
Ms Evans said Mr Jordan was pretty upset and agitated at the time.
The jury heard last week that a Tasmania Police ballistics experts had matched a cartridge case found at Mr Barker's Campbell Town property after the murder with a case found underneath the shipping container at a Jordan family property at Little Pine in the Central Highlands.
Director of Public Prosecutions Daryl Coates SC said in his opening address that Mr Jordan and his father-in law Noel Jetson fired from a toilet at a tree on the property and the cases were not picked up.
Defence counsel Fran McCracken said that there would be no magical piece of evidence in the case or a "gotcha" moment.
She referred to the "prosecution theory" that was made up of many little pieces of a jigsaw.
"But you need to look at the evidence and ask 'do the puzzle pieces fit together at all'," she said.
Mr Jordan's defence counsel Patrick O'Halloran said the headline issue in the trial was who murdered Mr Barker.
"It is not in dispute that Mr Barker was murdered but Mr Jordan had nothing to do with it," he said.
Under cross examination by Mr O' Halloran Katie Laycock of Campbell Town gave evidence that she had a short relationship with Mr Barker in 2008.
She said that on an occasion after they broke up her new partner Ben Foot rang her and asked her to pick him [Mr Foot] up from the pub.
"Him and Shane had words," Ms Laycock said.
A number of witnesses said they did not know of Mr Barker having any disagreements with anybody.
Friend Tim Hardy said that Mr Barker told him that he had once found Mr Jordan rummaging in his shed.
Another friend Jason Wickham said that Mr Barker had some bricks around the edge of his garden.
"He couldn't believe they [the Jordans] come and took them away," he said.
Mark Campton gave evidence that Mr Barker wanted to change his locks at the house and shed after his split from Rachel Jordan in 2007.
Several witnesses told the jury that Mr Barker was extremely angry and upset when questioned by police about sexual allegations in relation to a family member.
Mr Barker's sister Nicole Garwood said that he "couldn't believe she [Rachel] would stoop so low to make allegations like that".
"I believe he said the parents [Mr and Mrs Jordan] were part of making the allegations."
Justice Robert Pearce told the jury that they should keep any thoughts to themselves after a juror made a comment during Ms McCracken's cross examination.
The trial continues on Thursday.
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