Alleged ‘OzPharmLabs’ drug syndicate member Thomas Kelleher granted bail
A man accused of running a suspected illegal pharmacy’s “warehouse” has had another crack at bail. Here’s what happened.
Canberra Star
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A man who allegedly ran a suspected illegal online pharmacy’s “warehouse” may have access to $2.8 million in cryptocurrency, police have told a court while expressing fears he could use the funds to flee and restart the illicit enterprise.
But an officer’s concerns were not enough to keep Thomas Eric Kelleher behind bars, with a magistrate ordering the Canberra carpenter’s release after a marathon bail application on Tuesday.
Kelleher, 39, allegedly held a trusted position in what police have previously described as “the largest illegal controlled and prescription drug distribution network ever identified in the ACT and Victoria”.
In the ACT Magistrates Court on Tuesday, prosecutor Beth Morrisroe alleged the garage at the man’s home in Canberra’s affluent inner north was effectively a “warehouse” for an illegal online pharmacy.
Kelleher is accused of being responsible for packaging orders placed with the suspected illicit drug enterprise, “OzPharmLabs”, which allegedly operated through the Threema encrypted app.
Police, who conducted a series of “controlled buys” last year, claim the alleged syndicate distributed significant quantities of Xanax, Valium, anabolic steroids, human growth hormone, clenbuterol, THC gummies and psilocybin chocolates.
Kelleher is charged with 32 offences, including trafficking in a large commercial quantity of the psychedelic chocolate bars.
He has pleaded not guilty to all charges, which also include supplying anabolic steroids and declared substances, participating in a criminal group, unauthorised possession of a prohibited weapon, and dealing with more than $100,000 in proceeds of crime.
Opposing Kelleher’s latest bail application on Tuesday, Ms Morrisroe told the court the alleged drug syndicate appeared to have been making “millions” of dollars.
The prosecutor argued Kelleher was likely to abscond, commit crimes and interfere with witnesses or evidence if granted bail after more than four months remanded in custody.
She called evidence from Acting Sergeant Teagan McClure, who said material from alleged drug syndicate boss Michael Adam Kustic’s phone referred to that man having $2.8 million in cryptocurrency.
The lead investigator, from ACT Policing’s drugs and organised crime team, said police had been unable to track down those funds and Kustic may have told Kelleher how to “secure” them.
But defence barrister Kieran Ginges described these concerns as speculative.
Mr Ginges also argued Kelleher was unlikely to abscond because he had strong ties to the ACT, including a partner with “special needs”.
While Ms Morrisroe suggested Kelleher might commit crimes to meet “significant financial obligations”, including overdue rent, Mr Ginges said the 39-year-old’s legitimate carpentry skills were “in demand”.
The most serious of Kelleher’s charges required him to demonstrate special or exceptional circumstances to even have his bail application considered.
Mr Ginges and Ms Morrisroe agreed such circumstances existed in this case because it was likely to be 12-18 months before a laboratory finished testing the more than 68,000 drugs allegedly seized as part of what the prosecutor called “an ever-evolving investigation”.
Chief magistrate Lorraine Walker agreed, saying any trial was unlikely to occur before 2026.
As she granted bail with “stringent” conditions, Ms Walker described many of the prosecution’s concerns as “generalisations” that lacked specificity.
Kelleher will be subject to bail conditions that include a nightly curfew, a ban on having encrypted apps on his phone, and a requirement that he only travel in one car.
He is due to face court again next month.
Kustic and an accused drug “runner”, James Peter Martens, 28, remain before the same court on charges laid over their alleged involvements in “OzPharmLabs”.
At the time of his latest bail application, which was refused, Kustic was yet to enter pleas to dozens of charges, including trafficking in a large commercial quantity of a controlled drug and dealing with more than $1 million in proceeds of crime.
It is unclear whether Martens, who is on bail, has entered pleas to more than 20 charges, which include trafficking in a commercial quantity of a controlled drug and participating in a criminal group.
Kustic’s younger brother has also recently been charged over his alleged involvement with the suspected syndicate, following a raid in NSW last Thursday.
Jacob Daniel Kustic, 31, was arrested at his home in the Queanbeyan suburb of Greenleigh.
During a search, NSW Police claim to have found significant quantities of cocaine, methamphetamine, MDMA, steroids and a substance suspected to be GHB.
Officers also allegedly found a small amount of Xanax, a large quantity of commercial fireworks, about $8150 in cash, mobile phones and laptops.
Jacob Kustic was subsequently charged with two counts of supplying a commercial quantity of a prohibited drug, as well as single charges of recklessly dealing with the proceeds of crime and supplying an indictable quantity of a prohibited drug.
He did not enter pleas in Queanbeyan Local Court on Monday, when he was granted bail with a $20,000 surety and conditions that require him to attend a “rehabilitation centre”.
The bail agreement is set to take effect this Friday, when a bed becomes available at the centre.
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