The defense says Nevarez was paying off Finnigan to avoid arrest on a drug charge. His attorney claims Finnigan shot 25-year-old Eric Kaminski in the head after Nevarez told him Kaminski stole $40,000.
Kaminski's body was found buried under 6 feet of concrete in the basement of a building owned by Nevarez' grandfather.
Finnagan currently faces corruption charges along with other members of the now-disbanded special operations section.
ABC7 has not been able to reach his attorney for comment on the allegations made in court Wednesday.