I think this is how Helgoth fits into the picture:
IMO the pedophile group organising the coverup decided they would pin the murder on Helgoth. They arranged to have him killed in such a way that it would look like a suicide. They arranged for his death to take place the day after Hunters public statement directed at the killer in February 1997 "I want to say something to the person or persons that took this baby from us. The list of suspects narrows. Soon, there will be no one on the list but you."
The covering up pedophiles hoped the investigators would think that Helgoth had suicided because he was guilty of the JonBenet murder (as well as the Allie Berrelez one)and that he thought he was about to be prosecuted for both murders and so he did away with himself.
The pedophiles organised this because by that time they were getting worried that their plan to have John arrested for the sexual molestation and murder of JonBenet was beginning to look as though it wasnt going to come off. John had by now been pretty thoroughly investigated by the BPD and nothing had come out that indicated any kind of sexual deviancy on his part.
The BPD were now widening their search for a child molester and killer. In their desperation to prevent the investigation turning away towards them and their own sexually deviant practices, the pedophiles seized upon Helgoth as someone they could set up as the being murderer. He was not one of their cosy genteel little group, was an unpleasant character who did not have many friends and had a criminal record of previous sexual assaults - an ideal candidate.
The pedophiles arranged some deal with Steven Gigax in which he would kill Helgoth. They planted a pair of Hi-Tec boots, a stun gun and a news videotape containing a bulletin about the murder of Allie Berrelez in Helgoths home.
They arranged another deal with Kenady in which he was to point the finger at Helgoth - to say that Helgoth told him he was going to get $50,000 as part of some deal, that he had Hi-Tec boots and a stun gun and he had talked about wanting to kill someone.
All this was supposed to tie things up very neatly, Helgoth would be out of the way and unable to deny anything, the case would be solved and closed. After that they could all go back to their former peaceful lives free from the worry of prosecution and hopefully they would soon find some other little girl from which to derive their pleasure in the future.
This is all my opinion only