A MANSLAUGHTER charge is set to be dropped against a man accused of attempting to import cocaine through the Port of Newcastle after a diver was found dead floating near bricks of the drug.
James Blake Blee, 62, remains behind bars after he was arrested by strike force police in Cairns last year moments before boarding a flight, and was not required to appear in Newcastle Local Court on Wednesday.
The court heard the Director of Public Prosecutions (DPP) had been considering whether to press ahead with a manslaughter allegation, after police claimed Blee's "unlawful activity" led to the death of Bruno Borges Martins.
The Brazilian diver was found unresponsive in the water at the Port of Newcastle, with 54kg of cocaine discovered nearby, about 9.30am on May 9, 2022.
Commonwealth prosecutors confirmed in court the DPP had decided not to proceed with the charge, and paperwork would need to be filed to withdraw it.
Blee has not yet been required to enter a plea to the charge of importing a commercial quantity of a border controlled drug, which carries a maximum penalty of life in prison if convicted.
He also faces two counts of people smuggling; and dealing with the proceeds of crime.
Allegations of supplying a large commercial quantity of a prohibited drug; and knowingly dealing with the proceeds of crime, are also to be dropped.
The charges stem from an alleged $20 million international cocaine plot that was unravelled when Mr Martins' body was found near floating bricks of the drug.
Organised Crime Squad detectives alleged Blee illegally smuggled Mr Martins and an associate into Australia from Indonesia as part of the drug importation plot.
Detectives alleged that Blee travelled from Indonesia to Darwin with Mr Martins and the other associate in the days leading up to the diver's death and the discovery of the cocaine.
Blee made no application for bail on Wednesday and it was formally refused.
Blee's son, James Lake-Kusviandy Blee, also faces charges linked to the alleged cocaine import and was not required to enter pleas in court.
The 20-year-old was arrested for his alleged involvement by strike force detectives at Tweed Heads Police Station in November, last year.
Lawyers asked for an eight-week adjournment in both matters for discussions to be held.
Magistrate Janine Lacy agreed to set the matters down in August, but warned the prosecution and defence they had already had a two-month adjournment, and they wouldn't be getting that long again.
"Nothing occurred during the eight weeks really, there was no case conference, and the matter's going over again for another eight weeks," she said.
Newcastle police and Marine Area Command established a crime scene in the aftermath of the gruesome discovery, before the State Crime Command's Organised Crime Squad established Strike Force Groove to investigate further.
They have been assisted by officers from the Australian Federal Police, Australian Border Force, as well as Northern Territory and Queensland police.
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