The girlfriend of former Kings Cross nightclub owner John Ibrahim has testified he told her he knew how a pistol came to be in her apartment but would give no more information.
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Sarah Budge broke down when asked why she was still in a relationship with him, saying: "Because I don't think he deliberately put me in a bad position."
The 29-year-old has pleaded not guilty to three weapons possession charges, telling the jury she had no idea a stolen, defaced Glock 26 pistol and loaded magazine were hidden in a teapot box in her bedroom wardrobe.
The weapon was uncovered by federal police in August 2017, when they raided a series of properties including Budge's Double Bay unit and Mr Ibrahim's Dover Heights clifftop home.
Giving evidence in the NSW District Court on Tuesday, Budge said she was very upset after being arrested and spending the night in the cells before being released on bail.
The model and restaurateur said she confronted Mr Ibrahim and asked if he put the gun in her home because she wanted to know what was going on.
"I knew I had nothing to do with it getting there," she said.
"He told me he knew and he wasn't going to tell me any more information."
Budge said her boyfriend told her it was best for her she didn't know and had repeated this in arguments they had had over the years.
Her barrister, Simon Buchen SC, previously suggested Mr Ibrahim or one of his associates hid the pistol and ammunition in the wardrobe days before police found them.
On Tuesday, she was in tears when he asked why she was still in a relationship with Mr Ibrahim.
"I just don't think that he would try to do something to hurt me," she said.
Prosecutor Christopher Taylor noted the defence case was that Mr Ibrahim might have placed the gun in her unit.
"I don't think he did. I don't know," Budge said.
"I suggest that the position of him knowing but not telling you involves a significant breach of trust in your relationship?" Mr Taylor said.
"Yes, it was hard to deal with, absolutely," she replied.
She denied his suggestion she was making up her evidence about what her boyfriend told her about the pistol.
"The truth is there is no way you would continue to be in a relationship with him if it were true he knew how the gun got there and not told you?" the prosecutor said.
"I hope it's not him. I don't know," she said.
The trial continues.
Australian Associated Press