A 59-year-old woman is facing court over her alleged involvement in a $3 million drug manufacturing and supply operation in the Port Stephens region.
Her arrest follows an investigation by Strike Force Korpisalo, which was established by the New South Wales State Crime Command Drug and Firearms Squad in March 2026 to investigate the alleged diversion of chemicals and laboratory equipment used to manufacture prohibited drugs.
According to police, on 25 June 2026 detectives executed search warrants at Salamander Bay and Boat Harbour, where they seized approximately 64 kilograms of prohibited drugs with an estimated street value of $2.66 million, together with chemical containers, laboratory glassware and liquids alleged to be associated with a clandestine drug laboratory.
Two men were previously charged in relation to the investigation and remain before the courts.
Third Arrest Following Further Investigation
Detectives arrested the 59-year-old woman at East Maitland at about 10am on Friday, 17 July 2026.
Police executed a search warrant at a home in Aberglassyn, where they allege they seized 42 grams of methylamphetamine and $1,750 in cash.
The woman was taken to Maitland Police Station and charged with:
- Taking part in the manufacture of a prohibited drug involving more than a large commercial quantity;
- Supplying a prohibited drug in a quantity greater than an indictable quantity but less than a commercial quantity; and
- Knowingly dealing with the proceeds of crime.
She was refused bail at the police station and also later in court.
Police will allege the woman assisted in sourcing the chemicals and laboratory glassware allegedly used to manufacture prohibited drugs.
The Offence of Taking Part in the Manufacture of a Prohibited Drug
Section 24 of the Drug Misuse and Trafficking Act 1985 (NSW) makes it an offence to knowingly take part in the manufacture of a prohibited drug.
The legislation defines “manufacture” broadly. It extends beyond physically producing a drug and can include preparing, processing, packaging or participating in activities that form part of the manufacturing process.
Importantly, a person does not necessarily need to be found inside a clandestine laboratory to be charged. Depending on the evidence, prosecutors may allege that obtaining precursor chemicals, laboratory equipment or glassware, assisting with the operation of the laboratory, or otherwise facilitating the manufacturing process amounts to taking part in the manufacture of a prohibited drug.
To secure a conviction, prosecutors must prove each element of the offence beyond reasonable doubt.
The alleged manufacture involves a quantity greater than a large commercial quantity, which means the maximum penalty is life imprisonment.
The Offence of Supplying a Prohibited Drug
The woman has also been charged with supplying a prohibited drug under section 25 of the Act, which for a quantity of 42 grams of methylamphetamine carries a maximum penalty of 15 years in prison.
To establish a drug supply offence, the prosecution must prove beyond reasonable doubt that the accused knowingly supplied, or knowingly took part in supplying, a prohibited drug.
The term “supply” is defined broadly and can include selling, distributing, agreeing to supply, offering to supply or even keeping a drug for supply. The prosecution does not necessarily have to prove that money changed hands.
The Offence of Dealing With the Proceeds of Crime
Police have also laid a charge of knowingly dealing with the proceeds of crime under section 193B(2) of the Crimes Act 1900 (NSW), which carries a maximum penalty of 15 years in prison.
Broadly speaking, this offence requires the prosecution to prove that a person dealt with money or property that was the proceeds of criminal activity while knowing, or being reckless as to whether, it originated from the commission of an offence.
Legal Defences
In addition to having to prove each element of the above offences beyond a reasonable doubt, the prosecution must also disprove to the same high standard any legal defence raised by the evidence in the case.
The most frequently used general legal defence in these types of cases is duress. This is where a person or their loved-one has been threatened, the threat is serious enough to justify the otherwise criminal conduct, is playing on the person’s mind at the time of the conduct and is continuing.
A discrete legal defence known as the ‘Carey defence’ may be available against the charge of supply. This defence is where a person holds the drugs temporarily for the owner with the intention of returning them to the owner. Where it applies, a drug supply charge is reduced to the less-serious charge of drug possession.
