A former Manly Sea Eagles sponsor and once-successful mobile phone entrepreneur has been refused bail over his alleged role in a multimillion-dollar drug ring despite offering up a $6 million surety.
Robert George Melhem sobbed as he appeared via video link in Burwood Local Court on Tuesday, 11 days after being arrested in a major drug sting.
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Ex-Manly sponsor refused bail over drug charges
Former Manly Sea Eagles sponsor and once-successful entrepreneur, Robert Melhem, has been refused bail over his alleged role in a multimillion-dollar drug ring.
It was a far cry from the sports star-studded parties the 43-year-old had been known to host.
Most notable was the bash he threw at his Kirribilli mansion in 2010 for supporters of Brett Stewart after the Manly player was acquitted of sexually assaulting a teenage girl.
![Robert Melhem, right, with Brett Stewart after the 2008 grand final.](http://web.archive.org./web/20170830002257im_/https://www.fairfaxstatic.com.au/content/dam/images/g/y/6/p/m/p/image.related.articleLeadwide.620x349.gy6c73.png/1504045796492.jpg)
Melhem, known as "Robby", was arrested last month after allegedly orchestrating the supply of 18 kilograms of drugs to an undercover officer.
The supply was carried out over four separate deals, it is alleged, and organised using BlackBerry-encrypted messages.
In all, Melhem allegedly supplied three kilograms of cocaine, 10 kilograms of pseudoephedrine and five kilograms of ephedrine.
Seven kilograms were allegedly supplied on "tick". As a result, the court heard, Melhem may owe more than $560,000 to someone further up the supply chain.
![Robert Melhem, right with finger raised, celebrating with Manly players after they won the grand final in 2008.](http://web.archive.org./web/20170830002257im_/https://www.fairfaxstatic.com.au/content/dam/images/g/x/z/n/7/9/image.related.articleLeadwide.620x349.gy6c73.png/1504045796492.jpg)
Melhem, who once entertained the idea of buying the Manly Sea Eagles, flourished after founding OneFone, one of OneTel's largest connection providers, in 1999.
Despite the telco's collapse a few years later, Melhem salvaged and continued his success, spanning property development and most recently, the distribution of ready-made meals.
![Robert Melhem is accused of selling drugs in an undercover sting.](http://web.archive.org./web/20170830002257im_/https://www.fairfaxstatic.com.au/content/dam/images/g/x/z/l/m/7/image.related.articleLeadNarrow.300x0.gy6c73.png/1504045796492.jpg)
However, that came to an abrupt halt on August 17 when Middle Eastern Organised Crime Squad (MEOCS) detectives arrested Melhem at Sydney's Olympic Park.
It is alleged he communicated with a customer - who was in fact an undercover police officer - to organise the four drug deals in August.
On August 7 Melhem allegedly sent an encrypted message stating: "Mate I just got 2 loose vacuum seal Pure Mother Pearl kegs (cooks 97%)".
"You can have for $185,000. Can give u 2 tonight and pay me next week," Melhem allegedly wrote, according to police facts tendered in court.
A meeting was arranged at the Waterview Cafe in Bicentennial Park four days later.
Melhem allegedly outlined a plan to drive to Mascot, where the undercover officer was handed a black garbage bag containing more than one kilogram of cocaine.
In exchange, the officer handed over $185,000 to the alleged courier carrying out the exchange.
Surveillance officers located Melhem nearby while the deal took place, the facts state.
Two couriers, including a cocaine addict on the dole and a convicted heroin trafficker, have also been charged, accused of delivering the drugs at Melhem's behest.
After the trio's arrest last month, police also raided a Pyrmont apartment, linked to Melhem's syndicate, and found 22 kilograms of cocaine inside.
Conceding the prosecution case was not weak, Melhem's barrister, Phillip Boulten SC, told the court there would be difficulty added to the prosecution burden in proving guilt.
This included the allegation Melhem communicated with the undercover officer through encrypted BlackBerry messages despite police never finding such a device in Melhem's possession.
During Melhem's bail application, the court heard he was the breadwinner for some of his family and had been paying off a mortgage on a property where some relatives lived.
"There will be a very, very big disaster if the mortgage is not paid," Mr Boulten said.
In a bid to secure his release, Melhem's supporters, some of whom cried and waved from the public gallery, offered up a $6.1 million surety.
The father-of-four also proposed strict bail conditions, including "virtual home detention" and forfeiting his passport, the court heard.
Mr Boulten said some investors had trusted Melhem with large amounts of money for his new Queensland-based business, which distributed pre-packaged meals.
If that business collapsed, Melhem and those investors would lose a substantial amount of money.
Opposing bail, prosecutor Jacquie Brown said Melhem's ability to offer large amounts of drugs on credit showed he "clearly has access to significant funds".
"The Crown says because of that he will have the means not only to commit further serious offences but also the means to flee the jurisdiction," she said.
Labelling the prosecution case as "strong", Ms Brown said conversations between Melhem and the undercover officer were recorded.
There was also physical surveillance and alleged BlackBerry messages about the drug supply, in which the words "coke and pseudoephedrine" were used, she added.
Magistrate Julie Soars refused Melhem's bail application, finding there was a real risk of flight and "alleged drug supply in order to fund day to day living arrangements".
The case was adjourned to October.