Two men accused of conspiring to import 1.2 tonnes of cocaine into Australia were acting "under duress" while an international police investigation sought "to squeeze people with a pot of gold at the end", a jury has been told.
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The first day of a jury trial of Tristan Egon Sebastian Waters, 39, and David Edward John Campbell, 55, began in Sydney's Downing Centre District Court on Monday.
The Canberra region businessmen, along with co-accused Rohan Peter Arnold, allegedly attempted to import 1.28 tonnes of cocaine with a street value of $1.5 billion.
They were arrested in Belgrade, Serbia in February 2018 after a nine-and-a-half-month Australian Federal Police investigation spanning several countries.
Campbell has pleaded not guilty to conspiracy to import a border-controlled drug, and conspiracy to possess a border-controlled drug.
Waters has pleaded not guilty to conspiracy to import a border-controlled drug, and guilty to conspiracy to possess the drug.
During his opening address, Crown prosecutor Sean Flood said he expected evidence to show that the pair were involved in importing a shipping container of steel from China in March 2017.
He claimed the container was full of steel posts with metal "sleeves" in them, containing impure cocaine.
He said it had been shipped to Solutions 4 Steel, of which Campbell was the director and chief executive at the time.
Mr Flood told the jury he expected it would hear that Campbell had arranged to hire an eight-tonne truck, a forklift, and to purchase a van in the days before the shipment was due to arrive.
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On April 1, 2017, the container was seized by police, who communicated to Campbell that it had been lost and started an investigation.
Mr Flood claimed that, in a recorded conversation while speaking to a cargo logistics company, Campbell said: "The one that's gone missing is the container I need, mate."
The Crown alleges that in October, an undercover police officer using the alias "Henry" got in contact with Campbell, saying he had possession of the lost container in New Zealand.
"He says he knows what's in the container and that his boys had started cutting up the steel," Mr Flood told the jury.
Later that month, the Crown alleges, Campbell met with Henry and another undercover police officer named "Ivan" at a hotel in New Zealand to work out a "finder's fee".
Mr Flood said encrypted messages showed on December 10 the accused had attempted a simultaneous cash handover in Perth and Sydney, but it was called off when one of the undercover officers "was spooked by a tattooed South American".
By January 2018, Mr Flood told the jury Campbell, Waters and Arnold arranged to meet with undercover police in Serbia to simultaneously hand over 630,000 Euros, and $2 million in Australian currency in Perth, in exchange for the cocaine.
Serbian authorities then arrested the accused, and also allegedly seized a bag of cash.
During his opening address, Campbell's barrister, Ronald Driels, told the jury his client only participated because he was "acting in duress" with his life, and that of his family, under threat.
Mr Driels argued the evidence would show "somebody got at [the container] before it got on the ship, and between its leaving of the manufacturer".
"It was delayed for a week. It missed its first boat. The load was repacked," he said.
"And we know cocaine doesn't come from China, it originates from South America.
"Cartels from around the world have the ability to force their will."
Mr Driels told the jury he expected the evidence to show police had set up "an international lie" with the "strategy to squeeze people with a pot of gold at the end".
The defence barrister said that by the time Campbell met with undercover police in New Zealand, he "knew there was something of value in the container that came from China".
"Somehow, one-and-a-half billion dollars of cocaine had gotten to China and got out of China," he said.
"Cartels have an influence all over the world and have an active interest in Australia because we are a rich country."
Mr Driels said he expected there would be no evidence from the Crown proving Campbell paid or received large amounts of money during the time of his alleged crimes.
Waters' barrister, David Dalton SC, told the jury during his opening address that his client had also participated under duress.
"The major issue in this trial in relation to Mr Waters is whether the Crown can prove beyond reasonable doubt that he was guilty of conspiring to import the cocaine," Mr Dalton said.
The trial continues.
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