SUPERYACHT tour operator James "Jimmy" Blee has admitted to plotting a $20 million cocaine importation discovered when a professional diver drowned in the Port of Newcastle last year.
James Blake Blee Snr, now 63, illegally smuggled Brazilian nationals Bruno Borges Martins, 31, and Jhoni Fernandes Da Silva, 32, from Indonesia into Australia via Darwin so the pair could retrieve 108 kilograms of cocaine out of the sea chest of the bulk carrier Areti Gr Majuro on May 9.
But the massive importation plot was discovered when Mr Borges - who was wearing specialist diving gear including a rebreather that does not produce bubbles - was found floating in the harbour surrounded by bricks of cocaine, totalling about 54 kilograms.
It is believed he drowned due to complications with his diving equipment while he and Mr Da Silva tried to access the hull of the ship under cover of darkness.
The bulk carrier had sailed from Argentina via the Marshall Islands before arriving in Newcastle.
It is believed Mr Da Silva fled the port with millions of dollars of cocaine when Mr Martins failed to resurface and despite extensive searches, including internationally, he has never been found. Investigators believe he may have been killed by the syndicate to silence him after the importation failed.
Blee Snr appeared in Newcastle Local Court on Wednesday via audio visual link from jail where he pleaded guilty to importing a commercial quantity of a border controlled drug, which carries a maximum of life imprisonment, and people smuggling. Another charge relating to proceeds of crime will be taken into account when he is ultimately sentenced in Newcastle District Court.
Blee Snr had been charged with manslaughter over the death of Mr Martins, prosecutors intending to allege he knowingly gave him faulty diving gear which led to the divers' death, but that charge was withdrawn.
Meanwhile, Mr Blee's son, Queenslander James Lake-Kusviandy Blee, 21, who is the only other person arrested over the plot, also appeared in court on Wednesday.
He pleaded not guilty to aiding and abetting his father's importation and dealing with the proceeds of crime.
Mr Blee Jnr, who was granted NSW Supreme Court bail in January, will face a trial in Newcastle District Court likely in 2025.
Two days after Mr Martins body and the cocaine were found floating in Newcastle Harbour, Blee Snr was arrested only moments before boarding a flight to Singapore.
Blee Snr, who before his arrest was a well-known superyacht tour operator in Cairns where he ran North Queensland Superyacht Marine and Tours, had a one-way ticket and large quantities of US and Australian dollars at the time, police said.
Blee Snr had allegedly visited a number of diving shops with the two Brazilian nationals to buy equipment in the days before the failed plot.
And he allegedly bought a rebreather, which would prevent any bubbles surfacing from the divers and allow them to avoid detection.
After Blee Snr's arrest and extradition to NSW, police issued an appeal for information to find Mr Da Silva, distributing his picture and description.
But despite an extensive search, he disappeared without a trace.
Meanwhile, anyone else involved in the operation, described by investigators as a "well-drilled, professional group" have never been found.
