A private investigator has told the Federal Court he called his former friend Ben Roberts-Smith a "weak dog" after he was allegedly used in the war veteran's plot to threaten a soldier.
John McLeod alleged on Tuesday the former SAS corporal in 2018 handed over a blue folder with letters, envelopes and names, and phoned through an address for someone codenamed Person 18 that evening.
The following morning the former police officer said he drove across the Queensland border to NSW on family business, and posted two letters in Tweed Heads to Person 18.
About a week later he was "summoned" by Mr Roberts-Smith - who he had met while working hotel security in 2011 - to a meeting in Brisbane's Milton where he was warned "no phones no phones," so he switched his off, he said.
The pair walked to the side of a building where Mr Roberts-Smith said the media had reported "the letters were threats".
"They're not f***ing threats. It's just a touch-up," Mr Roberts-Smith allegedly said.
"I didn't understand what he was saying and then the penny dropped," Mr McLeod said.
He told Mr Roberts-Smith that if he had been compromised by his actions he'd "better get me a good lawyer".
"I said 'if you've done something stupid put your hand up ... the cover-up is 10 times worse than the offence'."
Mr Roberts-Smith told him to "just say you were a supporter of mine," and sent the letters because he was "sick of the way I was being treated".
"I just looked at him and said 'f*** that you weak dog'."
Mr McLeod "ceased" contact from that point, he said.
The Victoria Cross recipient is suing The Age, The Sydney Morning Herald and The Canberra Times for defamation and denies their reports that he committed war crimes and murders in Afghanistan between 2006 and 2012.
The 43-year-old has strenuously denied all wrongdoing including allegations of facilitating the threatening letters.
Following a 60 Minutes program disgracing Mr Roberts-Smith in which Mr McLeod admitted he was named as a "mysterious person," and an "associate" of the subject, he texted a friend: "I need to get out of town".
"I was worried about ramifications, being shot in the head," he said, denying that statement was a "wicked lie".
Mr McLeod said he was only giving evidence because he had been legally forced, and that he never discussed it with journalists as he despised the media.
He agreed to post the letters after Mr Roberts-Smith said he "was under the pump" and too busy himself.
It followed another surveillance mission he was tasked to perform at a Brisbane abortion clinic in 2018.
After parking outside the Greenslopes clinic for several hours, he figured the woman codenamed Person 17 "had gone to the wrong hospital," and relocated a short distance away.
There he filmed the woman and sent the recorded video to Mr Roberts-Smith who earlier testified that he asked Mr McLeod to follow the woman as he suspected she was lying about being pregnant.
Mr McLeod said he had also been asked to spy on Channel Seven employees as a "pretend bartender" at a function Mr Roberts-Smith was hosting as he was concerned to know what his fellow staff thought of him.
Barrister Bruce McClintock SC, on behalf of Mr Roberts-Smith, said Mr McLeod had tendency of "big noting" himself and had actually been hired as a doorman to check on guests.
"Not true," he said.
He agreed he later referred to Mr Roberts-Smith as a "prick" and "psycho," but denied he fabricated the letters allegation to help Emma Roberts "damage" her ex-husband.
Another former SAS soldier gave evidence on Wednesday afternoon of hearing Mr Roberts-Smith express an alleged bloodlust while on picket duty together in Afghanistan in 2006.
"I just want to kill c****, I don't give a f***, I just want to kill c****," he allegedly said.
The trial continues.
