Second alleged major steroid syndicate busted in ACT after $5 million drug seizure

Police allege steroids and other drugs were seized during raids in Canberra on Thursday. Photo: ACT Policing.

Police allege a Chinese national was involved in a second criminal group linked to the major supply of steroids across the country after $5 million worth of steroids and prescription drugs were seized in Canberra.

In December 2023, police allegedly busted a group running what they say was the largest illegal controlled and prescription drug distribution network ever identified in the ACT and Victoria, called ‘OzPharmLabs’.

As part of that investigation, police allege a second criminal group, which they described as “an affiliated syndicate”, was found to be operating in the ACT under the name of ‘Nexnos’.

An ACT Policing spokesperson alleged this group was also promoting their illegal business through bodybuilding discussion forums and using encrypted messaging apps to facilitate the sales.

As part of the investigation into Nexnos, police raided a home in O’Connor on Thursday (25 July), believed to be the group’s “warehouse”, and allegedly seized 59,000 vials and 156,000 tablets of steroids and prescription drugs that have an estimated value of $5 million.

“We allege this syndicate has been sourcing drugs from an overseas supplier and utilising the postal network to supply controlled drugs, including steroids, to buyers across Australia,” Detective Acting Inspector Emma Quade told media on Friday (26 July).

“Police also seized cash, two BMW vehicles and other items that supported the distribution of these drugs.”

Police raided locations in Flynn, O’Connor and Whitlam on Thursday (25 July) as part of the investigation into the alleged supply of steroids. Photo: ACT Policing.

She said police believed OzPhamLabs and Nexnos were “working alongside each other”.

“As a result of the arrests that were made in December 2023, this group has stepped up and continued to supply controlled substances throughout Australia,” Acting Inspector Quade alleged.

“I think it is extremely bold that this group has continued to supply substances after the arrests were made in Canberra last year.”

She said the operation in December remained the largest alleged seizure of drugs of this type.

A 33-year-old Chinese national was arrested at his home in Flynn on Thursday and handed 54 charges, mostly steroid or drug-related, in connection to the second alleged syndicate.

Police allegedly found steroids and other substances, as well as $35,000 in cash, at his home.

When the man applied for bail in the ACT Magistrates Court on Friday (26 July), which was opposed by the prosecution, the court heard more details about the allegations against him.

Police began a major controlled operation into Nexnos in October 2023, which allegedly involved police buying steroids and other substances from the group via an encrypted app called Threema.

It is alleged messages between Nexnos and OzPharmLabs showed the two operations were buying substances from each other, and that over three months they had exchanged $970,000. Also, Nexnos allegedly sent $31,000 to one of OzPharmLabs’ associates to assist with his legal fees.

But the man’s lawyer, Michael Kukulies-Smith of Kamy Saeedi Law, argued the prosecution’s case against his client was weak.

He said police appeared to suggest his client was “effectively the controller of this company”, but there was no evidence the $970,000 exchanged between the two groups went to any account associated with his client.

Mr Kukulies-Smith also said there was no evidence the items found in O’Connor were being sold or supplied – the evidence went no further than possession.

Detective Acting Inspector Emma Quade addressed the media about the operation. Photo: Albert McKnight.

The man’s charges include 22 counts of supplying an anabolic steroid, 28 counts of supplying a declared substance, as well as single counts of attempting to supply anabolic steroids, possessing a prohibited weapon, possessing the proceeds of crime and failing to comply with a 3LA order (a 3LA order gives law enforcement officers the power to compel a person to reveal their private encryption keys and personal identification numbers or passwords).

His bail application was adjourned to later on Friday afternoon. No pleas were entered.

The investigation into Nexnos is ongoing. The three charged over OzPhamLabs remain before the courts.