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‘Murder’ investigation lifts lid on alleged Lake Illawarra drug syndicate

An investigation into the shooting of Illawarra man Nathan Costello has uncovered an alleged drug syndicate in the Illawarra.

Police have uncovered an alleged drug syndicate while investigating the death of Nathan Costello (pictured). Picture: Facebook.
Police have uncovered an alleged drug syndicate while investigating the death of Nathan Costello (pictured). Picture: Facebook.

An investigation into the shooting of a 33-year-old man at Unanderra last year has lifted the lid on an alleged drug syndicate in the Illawarra.

Barrack Heights man Steven James Woods was arrested and charged with drug and firearm offences by Strike Force Gangele detectives on Monday, who are investigating the circumstances around 33-year-old Nathan Costello’s death.

Mr Costello was shot at Carr Parade at Unanderra in the early hours of Valentine’s Day last year, in what police at the time said was a “targeted attack”.

Police on scene at Unanderra after Nathan Costello was shot dead last year. Picture: 9 News Illawarra.
Police on scene at Unanderra after Nathan Costello was shot dead last year. Picture: 9 News Illawarra.

Shortly after Mr Costello’s death, Matthew Spinks, 33, was charged with his alleged murder, to which he has pleaded not guilty.

While investigating the alleged murder, strike force detectives uncovered links to an alleged drug ring in the Lake Illawarra region.

As part of those inquiries, two Firearms Prohibition Order searches were conducted at homes on Bracken Way and Tamarind Place at Barrack Heights earlier this year in April. During the searches, police located more than 200 rounds of ammunition, a rifle scope, drug paraphernalia, and cash.

Investigators also seized a Mercedes C63 from a business at Fairy Meadow in September 2018 and an Audi A5 from a home at Koonawarra in June 2018, which are allegedly proceeds of crime.

Steven James Woods was arrested and charged at Silverwater jail on Monday.
Steven James Woods was arrested and charged at Silverwater jail on Monday.

On Monday, officers arrested and charged Woods at Silverwater Jail, alleging he was responsible for the supply of more than 4kgs of methylamphetamine between April 2018 and February 2019.

He was charged with possess ammunition without holding licence, acquire ammunition subject to prohibition order, two counts of intending to pervert the course of justice, supply prohibited drug (large commercial quantity), supply prohibited drugs on an ongoing basis, knowingly deal with proceeds of crime intent to conceal, knowingly direct activities of criminal group, and police pursuit — not stop — drive dangerously.

Police will be further allege Woods — who was a disqualified driver at the time — was involved in a police pursuit on Mount Ousley Road, Cataract, in September last year.

It is not suggested Woods was involved in the death of Nathan Costello.

Woods case was briefly mentioned at Wollongong Local Court on Tuesday, where he did not apply for bail ad was formally refused.

Police say investigations into the shooting and alleged drug syndicate are continuing, and further arrests are expected.

Original URL: https://www.dailytelegraph.com.au/newslocal/illawarra-star/murder-investigation-lifts-lid-on-alleged-lake-illawarra-drug-syndicate/news-story/56dc00d1c95731b002c2ee77ee80b7ee