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The Canberra Times
The Canberra Times
Hannah Neale

Alleged syndicate member bailed as drug testing 'taking so long'

An alleged member of an "online pharmacy" syndicate has been bailed with testing of millions of dollars' worth of illicit drugs expected to take up to 18 months.

Thomas Eric Kelleher, 38, and two co-accused were arrested in December 2023, when police claim to have uncovered and "enormously destabilised" the "largest illegal controlled and prescription drug distribution network" in ACT history.

The major drug distribution syndicate allegedly possessed $5.5 million worth of illicit products and $2.8 million in cryptocurrency.

Kelleher faced the ACT Magistrates Court on Tuesday, when he was successful in his third bid for freedom.

He had previously pleaded not guilty to 32 charges including participating in a criminal group, trafficking in a commercial quantity of a controlled drug, and dealing in proceeds of crime.

Last year, police seized 68,000 items when they raided several homes. Multiple types of anabolic steroids, Xanax, human growth hormones, cannabis oil, THC and chocolate bars containing psilocybin [found in magic mushrooms] are said to have been found.

The drugs seized were allegedly sold online by the group, said to be operating under the encrypted message handle "OzPharmLabs", and distributed nationally through Australia Post from the "online pharmacy".

Co-accused and alleged syndicate "boss", Michael Adam Kustic, 39, is said to have received orders, engaged customers, and re-supplied illicit stock.

Kelleher allegedly stored the drugs at his home in O'Connor as well as packed orders for distribution.

Thomas Eric Kelleher leaves court on Tuesday, Picture by Hannah Neale

Meanwhile, James Peter Martens, 27, is accused of acting as a "runner".

It's alleged the seized drugs were "targeted towards people in the bodybuilding subculture" and sold on bodybuilding forums.

On Tuesday, defence lawyer Kieran Ginges argued Kelleher had been behind bars for 4.5 months and documents had still not been provided to the defence.

He said police expected laboratory testing of the substances to take another 12 to 18 months.

"There may be some other significant event that occurs that demands the resources of that facility," Mr Ginges told the court.

"It is very difficult for defence to prepare their case."

Prosecutor Beth Morrisroe stated there was only one testing station "and this is is why it was taking so long".

She argued Kelleher should not be granted bail due to a likelihood of him interfering with witnesses or evidence, committing crimes, or failing to reappear in court.

ACT Policing raided a home in O'Connor last year, when they claim to have seized drugs from the territory's largest illegal prescription drug distribution operation. Picture by Keegan Carroll

The police informant for the case gave evidence to the court.

The Acting Sergeant said officers were still unable to access the cryptocurrency and there were concerns Kelleher might be able to do so if released.

Chief Magistrate Lorraine Walker granted Kelleher bail and stated delays that "potentially results in a person being incarcerated for 18 months before they go to trial is very concerning".

Kelleher is set to return to court next month.

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