Strike Force Shipley: Zachariah and Ihab Obeid sentence hearing for drug supply

Two western Sydney brothers racked up $90,000 in debts to a drug dealer before agreeing to supply cannabis and ‘fake cocaine’ to a Central Coast man, a court has heard.

Brothers Ihab and Zachariah Obeid were in “too deep” and owed a drug dealer $80,000 and $10,000 respectively before agreeing to supply drugs to a man on the Central Coast, a court has heard.

Ihab Obeid, 31, of Sefton, and his brother Zachariah Obeid, 27, of Yagoona, faced Gosford District Court on Wednesday after pleading guilty to supplying a large quantity of cannabis and conspiracy to supply a prohibited drug.

Ihab Obeid also pleaded guilty to two counts of knowingly dealing with the proceeds of crime after police seized $62,500 in cash during a raid of a property at Gorokan.

Their arrests came after Tuggerah Lakes Police established Strike Force Shipley in January 2020 to investigate the supply of prohibited drugs and other criminal conduct across the Central Coast.

Zachariah Obeid (left) talking with his brother Ihab Obeid (right) and his lawyer (middle) outside Wyong Local Court at an earlier appearance. Picture: Sue Graham

Subsequently, detectives from the State Crime Command’s Drug and Firearms Squad established Strike Force Meegan to investigate similar alleged criminal activity being conducted out of western Sydney.

An agreed set of police facts states the brothers arranged to supply an amount of cannabis and cocaine to a co-accused man Steven Anthony Masters-Whitehouse on June 25, 2020, at Jilliby.

“One of the sticking points that emerged related to how the exchange would work,” the facts state.

After a series of telephone calls and messages in the days leading up to the exchange they agreed to do it in two stages, firstly the supply of cannabis for $72,000 and secondly the supply of cocaine for $130,000.

At 10.34am Mr Masters-Whitehouse pulled into the Sparks Rd commuter car park at Jilliby where he was met by Zachariah who gave him a large striped bag from the rear of his vehicle that contained 9.22g of cannabis.

The large striped bag containing 9.22kg of cannabis Zachariah supplied to another man at the Sparks Rd commuter car park at Jilliby. Picture: supplied

Masters-Whitehouse left and detectives pounced on Zachariah who “told police upon searching his vehicle they would find fake cocaine”, the facts state.

Meanwhile his brother Ihab stopped in a Toyota Prado on the other side of the road and looked back at Zachariah before driving to an address on Marks Rd, Gorokan.

Police seized a plastic bag from Zachariah’s vehicle which contained heat-sealed bags of white powder, which testing later revealed to be dextrose.

Officers searched the Gorokan address where they seized $62,500 in cash.

Ihab was later arrested at the address on August 11.

Giving evidence on Wednesday, Ihab said he had accrued a $80,000 debt with a drug dealer over the course of a year and was “fearful” of what would happen if he refused to supplied drugs on his behalf.

Zachariah Obeid

Ihab Obeid. Pictures: Sue Graham

“Everyone owes this bloke money,” Ihab Obeid said.

“I don’t know who has what debts but we all owed him money.”

His younger brother also told the court he was using up to “one bag” of cocaine, worth about $400 a day, before the dealer “cut him off” and he owed a total of $10,000.

He said he was in “too deep” and told the court his arrest was a “wake up call”.

Judge Siobhan Herbert adjourned the matter until March 18 when she will deliver her remarks on sentence.

Meanwhile Mr Masters-Whitehouse, 35, of Wadalba, was also arrested on June 25, 2020, and charged with 28 offences including unlawfully selling five firearms and supplying large commercial quantities of drugs including 278.6g of cocaine and 1kg of MDMA.

He is yet to enter any pleas and returns to Wyong Local Court on February 22.