THE BIG STING
Inside the eight-month undercover operation which brought down a three-state drug ring
SIPPING his latte at a North Adelaide cafe, George Nikolic was putting the final touches on his masterpiece. He was sitting around a table discussing his plan with friend Nicholas Mavromatis and well-respected Gold Coast pilot John White.
Also at that table was a highly regarded Sydney drug kingpin (also named George) and his right-hand man.
Nikolic was the architect of a drug enterprise that involved flying 100 pounds – or 45kg – of cannabis, 50,000 ecstasy tablets, chemical precursor and firearms from South Australia to New South Wales in September 2015.
Nikolic was set to pocket hundreds of thousands of dollars.
But South Australian, New South Wales and Queensland police had other ideas.
They had two informants on the inside.
While Nikolic was under the impression he was in control and running the show, he had, in fact, become a pawn in a clever police sting to smash a tri-state drug trafficking ring.
The 52-year-old took the bait.
The intimidating and wellconnected Sydney drug lord was actually an undercover police officer, as was his associate.
Every moment of that cafe meeting was recorded and Nikolic and his crew were under covert surveillance.
According to court documents, Nikolic, Mavromatis, White and the two undercover operatives — referred to as “UC329” and UC63” — came to an agreement at Cafe Palazzo on August 20, 2015.
Nikolic would sell pounds of cannabis to “George”, while White agreed to fly his private plane carrying the drugs from an airstrip north of Adelaide to Deniliquin airfield, in southern NSW.
The cannabis was believed to be sourced from “The Albanians”, who ran their own high-level drug syndicate.
Six days later, another meeting was held at the O’Connell St cafe involving the same men, as well as Nikolic’s “gofer” James Lee Pitt.
Mavromatis provided the buyers with 25g of “paste” to try before telling George he could throw in 50,000 ecstasy tablets for a price.
George agreed to buy the pills and the sourcing, sale and transport of the cannabis and ecstasy was confirmed for September 2, 2015.
The police officers handed over $30,000 as a down-payment for the pills, which was handed to Nikolic.
“It’s not evident what steps Mavromatis actually took or how far he progressed in being able to acquire 50,000 ecstasy tablets to sell to George,” the documents stated.
It stated that Mavromatis called Nikolic on August 31 and said, “tonight they start, I’m gonna be a rich c***”.
But Mavromatis failed to source the 50,000 pills.
He knew he would be in trouble with the drug lord for failing to produce the goods, so he called associate Yianis Bakirtzakis, asking him to source as much cannabis as he could in one day.
Bakirtzakis, who was described in court as Mavromatis’ “lackey”, managed to pull together nine pounds – or 4kg – of cannabis.
Meanwhile, Nikolic had been admitted as an inpatient at the Royal Adelaide Hospital because of complications to do with his diabetes.
On the eve of the drug transaction, he called Mavromatis and asked him to pick him up from hospital the following morning but he was unavailable.
Instead, he roped in his sonin-law Matthew Farrugia.
Farrugia collected his “dominant” father-in-law from the RAH, drove him to collect the 100 pounds of cannabis before dropping it off at Calvin Grove airstrip, in Virginia, about 10am on September 2.
He then drove Nikolic to Cafe Palazzo.
While Farrugia ate his breakfast, the undercover operative took Nikolic to the boot of his car to show him $485,000 in cash, which would be handed over once the drugs arrived in NSW.
Pitt, White and Mavromatis then arrived at the cafe. But there was a hiccup in the plan, Mavromatis had to confess to botching the 50,000 ecstasy pills delivery.
“Intercepted calls show that there was significant angst between Nikolic and the undercover police officers about Mavromatis’s failure to produce the 50,000 ecstasy tablets on the morning of September 2,” the documents stated.
But he offered a compromise.
He walked Nikolic and the operative around the corner to a white utility parked on Barton Tce East where Bakirtzakis was waiting.
In exchange for the pills, Mavromatis offered to sell nine pounds of cannabis and two tubs of chemical precursor.
“It was decided that the nine pounds of cannabis wouldn’t fit on the plane, but that the tubs would,” documents stated.
George agreed to buy the precursor for $25,000 a kilogram.
Pitt took the tubs from the car before driving the chemicals and White back to Calvin Grove airstrip before it was loaded into the plane.
At 1pm, the plane departed with 100 pounds of cannabis, 3.6kg of precursor – which police claimed would produce $2 million worth of the deadly drug ice – and firearms onboard.
It arrived at Deniliquin at 4.24pm.
Meanwhile, a second meeting for the day was held at Cafe Palazzo, where the crew waited with George’s right-hand man for a phone call from the drug lord to say the haul had arrived.
Nikolic returned to the RAH but told the buyers that Farrugia – who brought his three-year-old son – would be at the meeting in his place.
Once that phone call was made, the buyer would hand $485,000 to Farrugia, who would deliver it to the mastermind.
Instead, police swooped and put Farrugia, Mavromatis and Bakirtzakis in handcuffs, arresting them at the cafe while the plane was still in the air.
White was arrested once he touched down in NSW and Nikolic was picked up in the hospital.
The successful bust led to the arrest of 15 people and the seizure of the plane, cannabis, guns and precursor chemicals.
All men pleaded guilty in the District Court to their part of the operation, but Nikolic died of natural causes in June 2017 before his matter was finalised.
White is awaiting sentencing in the NSW District Court.
Jane Powell, for Farrugia, told the court he was a “lastminute” addition to the plan and felt pressured to courier the drugs.
She said he believed the undercover operative was a “drug kingpin from Sydney – someone intimidating, powerful and possibly with dangerous connections”.
Judge McEwen accepted he was a ring-in but said he played a significant role on the day of the transaction.
Paul Charman, for Mavromatis, told the court his client – “the pill man” – was a complete failure at producing the ecstasy and tried to “save some face” by sourcing the extra cannabis.
“He accepts he’s the author of his own misfortune,” he told the court.
Judge McEwen said he was not charged with the 100 pounds of cannabis but was responsible for the chemical precursor.
“His involvement in sourcing the methamphetamine precursor was an aspect of the overall commercial enterprise that had been agreed from the beginning,” he said.
Andrew Culshaw, for Bakirtzakis, said his client was a “part-player in all this”, but the court found he had “some role and authority” in the NSW consignment.
The court was told Pitt was a neighbour of Nikolic and was at his “beck and call day-andnight” for a drug reward.
At the time, police said the eight-month operation had smashed a sophisticated threestate drug ring involving the Hells Angels and Descendants bikie gangs.
Tonight they start, I’m gonna be rich NICHOLAS MAVROMATIS