It looks like Varsoon is on
https://wiki.project1999.com/Bloodsabers faction. That page lists Neclo as being opposed to Bloodsabers, so yes killing him (or others on that list)
enough times should recover your faction.
The thing to keep in mind about the wiki is that the factions are almost always correct, because players can see and fix them. The numbers however can't be seen (the wiki ones are based off the original EQ, when cheat programs allowed you to see faction numbers), so they're harder to correct if wrong.
As a result, your best bet is to ignore the numbers (or use them as a vague/general guide), and just focus on murdering innocent folk until the depraved people like you again
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