But 26-year-old Mr Bagnato has denied his involvement in last week's kidnapping of Schneider, a former Hell's Angel bikie, during interrogation in Thailand after being extradited from the Cambodian capital Phnom Penh.
Police say they have discovered a cache of weapons at two properties Mr Bagnato rented in the Thai tourist city of Pattaya, where five masked gunmen kidnapped Mr Schneider from his rented villa and buried his naked and disfigured body in a grave in woodlands a short drive away.
Police are investigating whether the "personal conflict" involved the proceeds of drug trafficking.
Fairfax Media has quoted sources as saying that Mr Schneider was cashed up after overseeing a major drugs shipment from Europe to Australia.
Wayne Rodney Schneider was one of NSW's 10 most wanted in 2006.
As well as acting as Mr Schneider's bodyguard the two men were partners in a Sydney fitness centre.
Thailand's military government has ordered that Mr Bagnato be tried in a military court on charges of possessing the weapons, which included two assault rifles, two hand guns, ammunition, two Tasers and brass knuckles.
Police will allege in court that Mr Bagnato hit Mr Schneider several times in the head with brass knuckles, causing severe injuries.
Bagnato has been charged with murder and kidnapping, which could see him sentenced to death, although executions are rarely carried out in Thailand.
Police found that when Mr Schneider's body was dug up from a two-metre grave hours after his abduction, his neck had been broken.
The murder followed a long investigation by Australian and Thai law enforcement agencies into Thai-based crime networks allegedly operated by Australian bikies.
Thai police quickly made a series of breakthroughs into Mr Schneider's murder after the kidnappers failed to notice a GPS tracking device on a pick-up utility they had rented.
A GPS signal led police to the grave-site.
Another breakthrough came with the arrest of 21-year-old American Tyler Gerard, who police say has confessed to driving the vehicle and has provided information about the other gunmen.
Police say three of the suspected gunmen, including two Australians, have left Thailand.
Notorious Melbourne bikie Amad "Jay" Malkoun left Thailand for Dubai within days of the murder despite being questioned as a key witness.
He had claimed he was drinking with Mr Schneider and Mr Bagnato on the night of the murder but slept through the abduction.
Is it just me, but " bikies" sounds so... pre-school. We call 'em bikers.
Posted by Sam C on December 8, 2015 19:13
Editor Comment:
A biker is a person who rides a bicycle, motorcycle, or motorbike, especially in competition or as a hobby.
A bikie is a member of a motorcycle gang.