Joe Zaiter: Manly drug dealer blames offending on Bill Vlahos horse scam
A dad-of-two became embroiled in a major Sydney drug syndicate after “losing everything” in the Bill Vlahos’ horse betting Ponzi scheme. He ran his cocaine dealing out of his Manly home as he attempted to “square off losses” he suffered in the betting scam.
Manly
Don't miss out on the headlines from Manly. Followed categories will be added to My News.
- Mum’s tears over teacher’s alleged sex act with student
- Former school dux alleged to have assisted ISIS
A father-of-two blamed his involvement in a drug syndicate on getting embroiled in the Bill Vlahos’ horse betting Ponzi scheme in which he “lost everything”, a court heard.
Joseph Zaiter was sentenced to seven years and six months in prison on Thursday for recklessly dealing with almost $100,000 in proceeds of crime and supplying 1020.19g of cocaine.
His drug syndicate co accused Steven Sevastopoulos sold $110,000 worth or 481.8 grams of cocaine to a police informant in September 2015, and another 488.8 grams in 2016.
Zaiter has been in prison since his arrest on January 19, 2016.
Upon hearing the sentence, he rested his forehead on the table, appearing somewhat impatient to leave the room.
Zaiter was imprisoned back in 2008 to two and a half years for his part in a $30 million cocaine importation.
But after witnessing two suicides and 50 assaults while in prison, Mr Zaiter said he could see that drugs were a “terrible cancer on the community”.
The court heard Zaiter was one of 71 people duped when now-convicted racing identity Vlahos pocked $17.5 million in fraudulent bets between 2008 and 2013.
In an apology to the court the former hairdresser said he was not strong enough to stay clear of the illegal activities as he attempted to “misguidedly … square off losses”.
The court heard he had also encouraged family and friends to invest in Vlahos’ scheme, and was receiving threats for money owed.
Zaiter’s exact role in the drug syndicate was never determined, but the court found he was involved in the facilitation of a commercial drug supply.
It is understood that Zaiter would source the drugs which were kept in his Manly home, and before each transaction Sevastopoulos would attend the home, for which he also had his own set of keys.
Sevastopoulos, who once referred to Zaiter as “his boss”, was then involved in the drug negotiations and transactions.
Zaiter also pleaded guilty to possessing a prohibited drug and engaging in transactions with up to $100,000 of proceeds of crime.
When police raided Zaiter’s home following Sevastopoulos’ arrest, they found 17 vials of human growth hormone, peptides and 20 capped syringes.
In a cupboard, they also found plastic electronic scales, heat-sealed plastic bags and a vacuum sealer machine, with 2.44 grams and 19.55 grams of cocaine found in separate plastic bags.
The almost $100,000 proceeds of crime was discovered by police in the centre console of a hire car when they stopped Zaiter and Sevastopoulos on the M5.
In 2018, Sevastopoulos was sentenced on similar charges to six years and six months in prison, with a non-parole period of four years and six months.
The pair were deemed by the court to play equal parts in the criminal syndicate.
Judge Phillip Mahoney found there was “planning and sophistication” involved in the drug enterprise with multiple hire cars used, money concealed in the centre console of his cars and multiple BlackBerries discovered.
Sevastopoulos was brought into court at the end of Zaiter’s sentence to discuss an application by the Crown to retrieve $99,020 proceeds of crime.
Both men will face court in a month’s time to determine this application.