Surveillance videos and bugged phone calls collected in New Zealand's most successful drug investigation have been played to a jury today.
Operation Gem seized more than 340kg of pseudoephedrine and police allege another 142kg shipment managed to slip through the border, which was then distributed by the "set" through a supply chain the Crown allege was controlled by Hui Zhang.
His fingerprints led police to the backdoor of an Auckland restaurant, which cannot be named, where police placed a covert camera to gather evidence.
The jury has today watched video footage of alleged drug deals including of Lulu Zhang, who worked at the restaurant, meeting Guo Pei Chen in the carpark.
Lulu Zhang is seen passing a plastic bag of newspaper-wrapped parcels to Chen, sitting inside a silver Lexus, who then drives away.
The Crown alleges Lulu Zhang controlled the supply on Hui Zhang's behalf, when he was out of the country, while Chen was a dealer who purchased drugs from the syndicate to sell to his own network. Other alleged pseudoephedrine buyers included Desmond Sharp and Felix Lim.
Lulu Zhang and Chen have pleaded not guilty to 11 and 16 Class-B drug charges respectively, while Sharp has admitted pseudoephedrine offences but denied manufacturing methamphetamine.
Lulu Zhang. Photo / Brett Phibbs
The jury also listened to bugged phone conversations, some which correspond to the video surveillance which the Crown alleges revealed a code.
In one phone call played today in the High Court at Auckland, Lulu Zhang tells her boss Hui Zhang that "Des" wants to book a table for 17 people to have lunch "straight away".
Another alleged conversation between Hui Zhang and Sharp was played to the jury, where they agree to meet at the McDonald's in Greenlane.
Hui Zhang then called Ziyang Ma, whom the Crown described as "the delivery man", and told him to "bring $1700" to the rendezvous point.
The Crown alleges the reference to 17 for lunch and $1700 is a code for 17 sets of pseudoephedrine.
Desmond Sharp. Photo / Brett Phibbs
Pseudoephedrine is extracted from a medicine widely available in China called ContacNT -- with 223g of the pink, yellow and red granules from 1000 capsules sold as a "set" for between $8000 and $12,000 on the black market.
Once the active ingredient in New Zealanders' favourite cold and flu medicines, pseudoephedrine is now banned as a Class-B drug because it's also needed to cook methamphetamine.
Ron Mansfield, Hui Zhang's lawyer, has told the jury that his client had pleaded guilty to 34 Class-B drug charges, supply or possession for supply. But he has denied the three charges of importing the drugs into the country as Hui Zhang "simply a link in the chain".
Evidence of two of the importations alleged arranged by Zhang come from shipments of bread crumbs.
Police raided a storage house in Botany Downs where they discovered a locked box, holding 47 sets of pseudoephedrine wrapped in newspaper, as well as empty packets of "chicken breader", or bread crumbs.
Analysis of shipping documents revealed a container holding 142kg of "chicken breader" was delivered to the restaurant in May 2013, which the Crown alleges was in fact pseudoephedrine.
Ten days after Hui Zhang's arrest in December 2013, police stopped another shipment of "chicken breader" destined for the restaurant -- inside the packets was a total of 235kg of pseudoephedrine and another 15kg of pure ephedrine.
"A massive sea-bound shipment that Zhang needed to breath life into his business," said prosecutor Bruce Northwood in his opening address.
Operation Gem: The Crown case
October 2012: Customs discovers 91kg of pseudoephedrine inside a water cylinder. Police allege Hui Zhang's fingerprint was found on a packet.
May 2013: 142kg shipment addressed to Auckland restaurant linked to Zhang. Police say pseudoephedrine was hidden inside packets of bread crumbs.
December 2013: Shipment of bread crumbs destined for restaurant intercepted by police at the Ports of Auckland. 235kg of pseudoephedrine and 15kg of ephedrine hidden inside packets of bread crumbs. Total: 483kg Sold by the "set" (223g), the three alleged importations are worth between $17.2 million and $25.8 million on the black market. Hui Zhang has admitted 34 Class-B drug charges (supply or possession for supply) but pleaded not guilty to the three importation charges.
