CAROL McHenry told a friend "the problem had been dealt with" and admitted to stabbing Danielle Easey in the days after the 29-year-old was murdered at a house on the Central Coast in 2019, a jury has heard.
He denies being involved in Ms Easey's killing, but admits to participating in the cover-up and dumping of Ms Easey's body and has pleaded guilty to being an accessory after the fact.
The jury has been told there is no dispute that Ms McHenry, Mr Dilosa's ex-partner, "had a part to play in the killing of Danielle Easey".
But it is the prosecution case that both Ms McHenry and Mr Dilosa were "directly involved" in Ms Easey's death and Mr Dilosa stabbed Ms Easey in the home at Narara on August 17, 2019.
Ms Easey's body was later found wrapped in plastic and duct tape in Cockle Creek at Killingworth on August 31.
On Wednesday, Vanessa Burnes, a former friend of Ms McHenry and Mr Dilosa, gave evidence during the trial, telling the jury the pair came over to her house about four days after Ms Easey was killed.
"We sat down and ate and then Carol proceeded to tell me what she had done," Ms Burnes said. "I didn't understand what she was talking about until it came up on the TV. She said that the problem that she had had been dealt with."
Ms Burnes said later Ms McHenry told her "I stabbed her" and when she asked who, Ms McHenry replied: "Danielle".
She told the jury Ms McHenry and Mr Dilosa then got into an argument and Mr Dilosa told Ms McHenry: "She didn't need to know".
Ms Burnes said she was in shock and asked the pair to leave, but didn't make the connection about what had happened until she saw a news bulletin on September 1 about Ms Easey's body being found.
Crown prosecutor John Stanhope took Ms Burnes to a series of text messages between her and Mr Dilosa in the early hours of August 19.
During that exchange, Mr Dilosa wrote: "What I did ultimately was to keep those kids safe, but it also will keep half of Newcastle and the Central Coast from going to jail or killing each other. What I'm saying sounds far-fetched, but you'll understand when I see you".
Ms Burnes said at the time she received the message she thought it related to credit card fraud, but later connected it together.
The trial is focusing on the evidence of several former associates of Ms McHenry and Mr Dilosa, who Mr Stanhope said were involved in using methamphetamine, and who say the pair made a number of admissions about murdering Ms Easey.
"Everything was fine until the crack ran out," Mr Dilosa allegedly told an associate. "She started to lose it. "She was saying she was gonna bring everyone down. Then it happened. I stabbed her in the head and in the back."
The trial, before Justice Deborah Sweeney, continues.
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