Factual dispute
8On 13 February 2007 police executed the search warrant in another unit in Newington occupied by a John Youkhana. He had also occupied the flat at Newington to which Mr T delivered the cocaine. The offender's partner rented both premises and had been seen at both premises. On execution of the warrant police found a packing carton with a label from Mr T's shipping company and fifty concrete-cutting saw blades, weighing ninety-six kilograms in total.
9John Youkhana has been sentenced for supplying cocaine and firearms offences uncovered by Operation Schoale. He is presently serving a total sentence of nine years with a non-parole period of six years and nine months.
10On 20 December 2006 Mr T purchased one of the blocks of cocaine taken from the larger package. He gave evidence at Mato and Rusu's court proceedings (Exhibit A10(i)-(iv)). He said he was unable to observe the whole unpacking process and thus could not say how much cocaine was actually imported. He said that the two offenders broke his rule about an absolutely one hundred kilogram limit.
11Mr T described his role in the delivery and unpacking (Exhibit A10(ii)). In the transcript of 26 May 2010 he said he counted twenty-two to twenty-five blocks similar to the one he purchased being taken into the premises as the first load. He said he saw six to ten blocks included in a second load, and as I read the transcript of 26 May at page 50, a third load and a fourth load were taken into the unit before he left. The box was still being unpacked when he left. He said he saw nothing other than the box, packing, saw blades, pallet and the cocaine blocks.
12On 27 May 2010 (Exhibit A1(iii)) Mr T reiterated that he had no idea how much cocaine was in the parcel but said he had estimated there were at least fifty blocks. He said the block he bought weighed about one kilogram. Pallets weigh up to twelve kilograms (Exhibit 9(x)).
13Cocaine ranging in purity from sixty-one per cent to eighty-two per cent was seized from direct associates of the offender at the time the search warrants were executed. These associates include John Youkhana and Jason Johnson. Johnson is presently serving a total sentence of five years with a non-parole period of three years and nine months for supplying cocaine and firearms offences uncovered by Operation Schoale. It is reasonable to assume that some of this cocaine came from the December 2006 importation.
14The Crown submit that all of the above evidence and evidence relating to the amount of cash money available to the offender and cocaine sold by him establishes that at least two hundred kilograms gross of cocaine was imported. Two hundred kilograms at sixty-one per cent purity would yield an amount of pure cocaine weighing over one hundred and twenty kilograms.
15The offender's wife, Natasha Youkhana, is presently facing sentence for her role in matters uncovered in Operation Schoale. These offences include knowingly dealing in the proceeds of crime amounting to over $4 million, some of which was spent on their wedding and their home at Pennant Hills. Her sister, Tanya Youkhana, is also serving a two year sentence for assisting in the hiding of over $2.7 million during the relevant period. Although both women are clearly associated with the offender he is not to be punished for their offences.
16The defence concedes that forty kilograms of pure cocaine was imported (Agreed Facts at [43]) but say that the Crown has not met its onus to prove it was more than that amount and certainly has not met its onus to prove that it was over one hundred and twenty kilograms.
17When I examine all of the evidence I can comfortably find beyond reasonable doubt that well over 65 one-kilogram packets yielding more than forty kilograms of pure cocaine were imported. The real question is: How much more than forty kilograms of pure cocaine was imported?
18In making my findings I rely on the admissions made in the Agreed Facts. I accept that Mr T saw four similar loads being taken into the Newington unit (the first of which contained over 20 one-kilogram blocks) and the fact that there was obviously more cocaine in the parcel to be unpacked when he left. I also have regard to the risk taken by the offender and his partner, a risk that could only be justified if a significant amount of cocaine was imported. I also note the material in the other exhibits about the money expended in preparing for the importation, including $1.5 million to Mr T and $1 million as part payment sent to the USA.
19The ledgers found at the offender's home at Pennant Hills on 12 March 2007 indicated an association by him with thirty-seven blocks of cocaine (Exhibit A(viii)). Ms Gray, for the Director of Public Prosecutions, submits they could, on the evidence before me, only be associated with this shipment. As she sets out in her written submissions, if the kilogram packets were retailed at $190,000, two hundred kilograms would wholesale for about $38 million and forty to sixty kilograms would wholesale for "only" $7.5 to $11.4 million. She suggests the $38 million figure is more consistent with the amounts of money expended. She draws my attention to the wholesale price of cocaine in America (Exhibit E) and the vast sums of money available to the offender and his family between December 2006 and his arrest in July of 2007.
20On the other hand Mr Boulten SC, for the offender, suggests that as "only" $1 million was sent to the US in part payment and $1.5 million was given to Mr T the lower figure is more indicative. He argues that this is the only evidence of payment and that the sums expended by, or found with, the offender or his family could have other sources, as undoubtedly any expenditures and money received before October 2006 did. A similar subtle argument is made in relation to the ledgers: I can only take them into account if satisfied they relate to this importation.
21I must be careful not simply to guess at a quantity. I must make this decision to the required standard on what is supported by the evidence before me. I must caution myself that the witness, Mr T, may have had reasons to downplay his involvement and over-emphasise that of others. A sustained attack on his credibility was mounted in the Mato and Rusu proceedings.
22I infer matters of aggravation only if they are the only rational inferences available. For example, I have considered the coincidence of the false order forms being for forty-seven saw blades and the fifty saw blades found at a unit associated with the offender's partner. This indicates that the likely amount of legitimate product weighed close to one hundred kilograms, leaving over two hundred kilograms unaccounted for in packaging or pallets and, thus, inferentially cocaine. There is no reliable evidence about how many saw blades were imported in this shipment.
23Mr Boulten stresses that what is "likely" does not meet the high onus placed upon the Crown. I agree, although I remain highly suspicious there were up to two hundred blocks of cocaine imported I am unable to find beyond reasonable doubt that the shipment reached that extremely high amount.
24After giving the benefit of the doubt to the offender the evidence before me establishes that more than 65, and up to at least 100, one-kilogram blocks of cocaine mixture were involved in the importation. I base this conclusion on the money expended and available to the offender and his direct associates, the cost of the shipment, the risks involved in over-loading the parcel, the ledgers and that what Mr T saw was only part of the shipment unloaded. This conclusion leads to an estimated pure weight of cocaine of sixty-one per cent (the most favourable figure for the offender) of a minimum of between forty to sixty kilograms of pure cocaine.
25Even if the defence figure of forty kilograms of pure cocaine is taken as a minimum imported, this offence is one of considerable objective seriousness. The Agreed Facts at [40] note that the role of the offender is:
"...a middle level manager of the importation enterprise. His role is a significant one in which he facilitated the financial arrangements regarding the importation in addition to taking receipt and unpacking the shipment".
26Care must be taken with labels such as "middle manager" but I accept this is an accurate summary of the offender's role, which is set out fully in the Agreed Facts summarised above.