Steve Milenkovski

Convictions

Milenkovski, the man instrumental in establishing the Comanchero bikie gang in WA was one of three people convicted on 20 July 2012 over drug deals worth $3.8 million that were part of an elaborate interstate drug syndicate.

Following a nine-week District Court trial, a jury found Steve Milenkovski, who has links to the Comancheros, guilty of two drug offences and his trusted “foot soldiers” and “team mates” Paul Da San Martino and David Tanevski guilty of one count each.

The jury had deliberated over four days. Another co-accused, Hao Bi, who was allegedly a “foot soldier” and “courier” for the NSW syndicate, which was selling methylamphetamine to Milenkovski, was acquitted. Judge Anthony Derrick warned the three convicted men it was inevitable they would be sentenced to significant jail terms.

Prosecutor Carmel Barbagallo said Milenkovski was a “prolific drug dealer who was the driving force behind the WA drug syndicate”. “He was the captain and coach of what may be described as Team Milenkovski,” she told the jury. The men faced charges relating to two drug deals, involving 2.675kg of methylamphetamine found hidden in a barbecue at Da San Martino’s Stirling home in December 2009 and attempting to smuggle 4.9kg of the drug concealed in a spare car tyre in February 2010. Police intercepted the February 2010 deal, swapping the drugs for an inert substance in Adelaide and monitoring the pick-up in Perth that involved Tanevski. Two other men have been convicted over the deals.

Evidence at trial gave an insight into the inner workings of the drug trade, including communicating by code in text messages, dumping cars used to transport the drugs in city carparks, hiding the drugs in cars that were put on Toll trucks in Sydney and acting on the instructions of Sydney drug kingpin James Adams who they codenamed “Mother”. Ms Barbagallo said other code names the men used were “Johnny” for cash, “girls” for drugs or a courier, “favourite” for methylamphetamine and “favourite’s cousin” for cocaine.

Written pre-sentence reports were ordered for all three men ahead of their sentencing. They were all remanded in custody.

A WA Police spokesman said the operation was the result of many months of work by various agencies targeting interstate drug trafficking activities of people linked to the Comanchero bikie gang.

During Milenkovski's bail hearing in April 2010, Justice Blaxell set out the cirumstances of the offences, as follows: "4 At approximately 11 am on 4 December 2009, investigators from the Organised Crime Squad executed a search warrant at a house in Stirling and found 2.67 kg of methylamphetamine hidden in the garage of the premises. The occupant of the house was Paul Dasanmartino who was the husband of Mr Milenkovski's cousin. He was charged with possessing the methylamphetamines with intent to sell or supply. 5 While the police were conducting their search, Mr Milenkovski arrived at the house driving his Toyota Prado motor vehicle. A search of the vehicle revealed a loaded .22 calibre pistol concealed in the arm rest of the driver's door. The serial number of the pistol had been drilled out so as to make the firearm unidentifiable. 6 The police also found $13,765 in cash and six mobile phones in the vehicle. Only one of those mobile phones had been subscribed for in the name of Steve Milenkovski. Milenkovski was arrested and charged with firearms offences and then released to bail. 7 Another mobile phone was seized from Dasanmartino and a subsequent download showed that it had been used to exchange five text messages with one of the mobile phones in Milenkovski's vehicle. Those exchanges occurred between 10.35 am and 10.50 am on 4 December 2009, and it is open to infer that they constituted a coded discussion concerning an imminent collection of drugs and the payment of money. 8 It is highly relevant that both of the mobile phones used in that exchange had been subscribed for in the same false name and that they were first activated on 1 October 2009. Furthermore, there is evidence before me (in par 13 of the affidavit of Detective Sergeant Darren Lindsay Taylor sworn 16 April 2010) that it is common for persons involved in illicit drug dealing to subscribe for mobile phones in false names in an endeavour to frustrate monitoring by law enforcement officers.

Detective Sergeant Taylor is a Detective Supervisor at the Organised Crime Squad and he has been involved in numerous drug investigations. 9 Between 18 January and 25 February 2010 police investigators lawfully intercepted a particular mobile telephone service which was allegedly being used by Milenkovski. That service was an Optus connection subscribed for in the name of Lawrie Wood, born on 2 August 1978, with a listed address of 147 Murray Street, Wembley. 10 Although there is an issue as to whether or not Milenkovski in fact used that mobile service while it was being monitored by the police, he was ultimately found in possession of the phone which was connected to the service. It is also relevant that the address of 147 Murray Street, Wembley does not exist, and that a police search of relevant computer databases cannot locate any person with the surname Wood who was born on 2 August 1978.

11 There is also evidence (which I will refer to shortly) of movements by Milenkovski on 25 February 2010, which correlate with the content of particular text messages. In my view, all of these circumstances combine to raise the very strong inference that Milenkovski was operating the mobile telephone service during the period it was being monitored by the police. (Accordingly I will refer to it as 'Milenkovski's phone').

12 Between 29 January and 25 February 2010, numerous text messages passed between Milenkovski's phone and phone services operated by other parties. The content of these various text messages are set out in annexure 'DLT 2' to Detective Sergeant Taylor's affidavit, and the exchanges with two other parties (0424241990 and 0468951375) were particularly significant.

13 The initial exchanges with the first of these other parties were very tentative, and Milenkovski was told to 'keep the convo minimal' (message 5801). It would seem from what followed that there must have been some additional form of communication between the parties because two days later, Milenkovski (in 6540) referred to 'the two things that were asked'.

14 There was then an exchange of text messages (6542 - 6571) which were obviously drug related. Milenkovski referred to being given a 'sample' (6550) in 'a small container with some in it to test' (6552). Milenkovski was then asked 'Hav U got the long name I asked for?' (6544) and he ultimately responded 'methyl benzyl ketone' (6557). Methyl benzyl ketone is a precursor chemical for the manufacture of methylamphetamines.

15 The second significant exchange of text messages was with the operator of phone service 0468951375. Although many of these messages were in coded terms, their contents (from 6962 onwards) give rise to a compelling inference that they were concerned with the availability of a very large quantity of methylamphetamines and Milenkovski's ultimate decision to acquire 5 kg of those drugs. On 11 February 2010, arrangements were made for the 5 kg to be sent 'the very slow way through' (8333) and on '10 days' credit' (8335 - 8336).

16 On 12 February 2010, law enforcement officers in New South Wales observed one Yavuz Ozan deliver a Daihatsu motor vehicle to a transport company. The Daihatsu was then transported by road to Perth via Adelaide, South Australia.

17 On 16 February 2010, a Western Australian detective in company with other law enforcement officers, attended at the transport company's depot in Adelaide and seized 5 kg of methylamphetamine from the spare tyre of the Daihatsu. The methylamphetamine had an average purity of 60% and was capable of being diluted with cutting agent to 20 kg at the average street level purity of 15%.

18 When the Daihatsu arrived at the transport company's depot in Perth on 22 February 2010, police officers inserted 5 kg of an inert substance into the spare tyre. At 2.21 pm on 25 February 2010, the Daihatsu was collected by Ozan who drove it to a shopping centre car park in Bayswater. Ozan then caught a taxi to the Charles Hotel in North Perth where he handed the keys of the Daihatsu to an Asian man by the name of Hao Bi.

19 At 2.43 pm on the same day the party operating the service 0468951375 sent a text to Milenkovski's phone stating that 'the car is over there now Babe. When do you want to pick it up?' (10979). At 2.53 pm, Milenkovski was also told that 'My oriental girl will be there' (10993).

20 At 5.12 pm there were crossed messages between Milenkovski's phone and the other party. The first message to Milenkovski was that 'Girl is in spare tyre' (11054). In response to Milenkovski's question 'Where is the girl' (11055) he was advised 'Spare wheel. My girl is on the way. 40 minutes away' (11056).

21 At 5.23 pm, Milenkovski sent a text message giving directions to a place consistent with the KFC store at the Dog Swamp Shopping Centre in Yokine. At 6 pm, a law enforcement surveillance officer observed Hao Bi speaking with an associate of Milenkovski near the KFC store at the Dog Swamp Shopping Centre. At about that time, Milenkovski was observed on several occasions to drive a vehicle through the Dog Swamp Shopping Centre.

22 Shortly afterwards, the Daihatsu was driven by Milenkovski's associate to a house in Stirling. The police later searched that house, and found in the garage of the premises the 5 kg of inert substance which had previously been in the spare tyre of the Daihatsu.

23 When Milenkovski was apprehended by police on 25 February he was yet again found in possession of six mobile phones. One mobile phone was subscribed for in the name of Steve Milenkovski and the remaining five mobile phones were subscribed for in names other than Milenkovski. The mobile handset which provided the service which had been previously monitored by police, was one of those in Milenkovski's possession at the time of his apprehension."

In an appeal hearing in the Supreme Court of Western Australia during November 2013, the court gave further details of the charges relating ot Mr Milenkovski. The evidence mentions Hakan Ayik, one of Australia's most wanted criminals.

19 The appellant, Yavuz Ozan, David Tanevski, Mark Kitis, Paul Da San Martino and Hao Bi were charged on indictment with one or more offences against the Misuse of Drugs Act 1981 (WA) (the Act).

20 The counts in the original indictment alleged:

(a) Count 1: on 4 December 2009, at Stirling, Mr Ozan supplied a prohibited drug, namely methylamphetamine, to another, contrary to s 6(1)(c) of the Act.

(b) Count 2: on 4 December 2009, at Stirling, the appellant and Mr Da San Martino had in their possession a prohibited drug, namely methylamphetamine, with intent to sell or supply it another, contrary to s 6(1)(a) of the Act.

(c) Count 3: on 25 February 2010, at North Perth, Mr Ozan attempted to supply a prohibited drug, namely methylamphetamine, to another, contrary to s 6(1)(c) read with s 33(1) of the Act.

(d) Count 4: on 25 February 2010, at Yokine, Mr Bi attempted to supply a prohibited drug, namely methylamphetamine, to another, contrary to s 6(1)(c) read with s 33(1) of the Act.

(e) Count 5: on 25 February 2010, at Yokine and elsewhere, the appellant, Mr Kitis and Mr Tanevski attempted to possess a prohibited drug, namely methylamphetamine, with intent to sell or supply it to another, contrary to s 6(1)(a) read with s 33(1) of the Act.

(f) Count 6: on 25 February 2010, at Stirling, Mr Kitis had in his possession a prohibited drug, namely methylamphetamine, with intent to sell or supply it to another, contrary to s 6(1)(a) of the Act.

21 In early August 2011, Mr Ozan and Mr Kitis entered pleas of guilty to the offences alleged against them.

22 The appellant, Mr Tanevski, Mr Da San Martino and Mr Bi maintained pleas of not guilty to the offences alleged against them.

23 On 16 April 2012, the State filed a new indictment against the appellant, Mr Tanevski, Mr Da San Martino and Mr Bi. Count 2 on the original indictment became count 1 on the new indictment. Count 5 on the original indictment became count 3 on the new indictment.

24 In the balance of these reasons I will refer to the counts against the appellant in the new indictment.

25 On 20 July 2012, after a trial in the District Court before Derrick DCJ and a jury, the appellant was convicted on each count.

26 On 14 September 2012, the trial judge sentenced the appellant to individual terms of imprisonment of 12 years on count 1 and 14 years 6 months on count 3. His Honour ordered that the appellant serve 2 years 6 months of the term for count 1 before the term for count 3 begins. The total effective sentence was therefore 17 years' imprisonment. The individual sentence for count 1 and the total effective sentence were backdated to 11 December 2010. A parole eligibility order was made.

The facts and circumstances of the offending: count 1

27 During the weeks preceding 4 December 2009, the appellant negotiated with Li Zhang to purchase a quantity of methylamphetamine. The negotiations were conducted by coded communications on prepaid mobile telephones. Mr Zhang was a member of an illicit drug distribution organisation in New South Wales. The principal of the organisation was Hakan Ayik. Mr Ayik was known to the appellant and others who dealt with him as 'mother'. Mr Zhang was a trusted and very senior representative of Mr Ayik.

28 The appellant was the principal of a drug distribution organisation in Western Australia. He used other people to carry out the 'hands-on work' of obtaining illicit drugs and paying for them.

29 On or about 16 or 17 November 2009, the negotiations between the appellant and Mr Zhang were concluded. The appellant ordered six pounds (about 2.688 kg) of methylamphetamine at a price of $45,000 a pound. The total purchase price was $270,000.

30 Arrangements for transportation of the methylamphetamine from Sydney to Perth involved the purchase of a car in Sydney, the hiding of the drugs in the car and the transport of the car on a truck by Toll Transport. On arrival in Perth, the car would be collected by a representative of Mr Zhang. That person would remove the drugs from the car and deliver the drugs to a representative of the appellant. The appellant's representative would then deliver the drugs to the appellant or sell and supply the drugs to others in accordance with his instructions.

31 Pursuant to these arrangements, Mr Ozan, who was a representative of Mr Zhang, purchased a car in Sydney under a false name. On 20 November 2009, Mr Ozan met with Mr Zhang. One or both of them hid the methylamphetamine ordered by the appellant behind an internal panel in the car. The drugs were packaged in six separate clipseal bags. Each bag contained about 1 pound or 448 g of methylamphetamine. Mr Ozan then drove the car to Toll Transport in Sydney and arranged, again under a false name, for the car to be transported to Perth. On 24 November 2009, the car departed Sydney for Perth on a truck.

32 On 1 December 2009, the appellant flew to Sydney. He had a meeting with Mr Zhang and then another meeting with Mr Ayik. The purpose of these meetings was to make and confirm the final arrangements for the transaction. The trial judge was unable to determine how payment for the methylamphetamine was made or when it was made.

33 On 4 December 2009, Mr Ozan flew to Perth under a false name. He collected the car from a Toll Transport depot near the airport. Mr Ozan drove the car to the Novotel Hotel at Adelaide Terrace in Perth. On arrival at the hotel, he retrieved the methylamphetamine from the car and reserved a room at the nearby Sheraton Hotel under a false name. He then travelled by taxi to a bus stop near the Charles Hotel in North Perth. Mr Ozan took the drugs with him.

34 The appellant had arranged for Mr Da San Martino to collect and store the methylamphetamine. Mr Da San Martino was to meet Mr Ozan at the Charles Hotel and travel with him to Mr Da San Martino's house in Stirling where the drugs would be stored.

35 In accordance these arrangements, on the morning of 4 December 2009 Mr Da San Martino drove to the bus stop near the Charles Hotel and collected Mr Ozan. He then drove to his house. On arrival, Mr Da San Martino or Mr Ozan or both of them hid the drugs in Mr Da San Martino's barbecue in the garage of his house. Mr Da San Martino then returned with Mr Ozan to the Charles Hotel. Mr Ozan went to the airport and flew to Sydney.

36 About two hours after the methylamphetamine was hidden in Mr Da San Martino's barbecue, police arrived at his house and executed a search warrant. They found the drugs. They also found $47,300 cash, clipseal bags, a set of electronic scales with traces of MDMA, cocaine and methylamphetamine on its surfaces, a heat sealer and a money counter.

37 The methylamphetamine found by the police weighed 2.675 kg and had a purity ranging from 17% to 19%. The trial judge found that the total value of the drugs in the Perth market at the time of seizure was in the vicinity of $1.15 million. However, his Honour was not satisfied beyond reasonable doubt that the appellant's intention was to sell the drugs in one-ounce lots and, by that means, obtain $1.15 million for them. On the basis of the purchase price the appellant had agreed to pay for the drugs and expert evidence from a police officer, his Honour was satisfied beyond reasonable doubt that the appellant intended to sell the drugs for at least about $80,000 a pound; that is, for a total of about $480,000.

38 On 4 December 2009, Mr Da San Martino was arrested and charged. The appellant was not then arrested and charged for his involvement in this offence, but he was charged on 4 December 2009 with unlawfully being in possession of a firearm. The police decided to release the appellant and continue with an investigation into his activities.

The facts and circumstances of the offending: count 3

39 During several days in February 2010, the appellant negotiated with Mr Ayik to purchase another quantity of methylamphetamine. Once again, the negotiations were conducted by coded communications on prepaid mobile telephones.

40 The appellant agreed to purchase 5 kg of methylamphetamine from Mr Ayik at a price of $280,000 a kilogram. The total purchase price was $1.4 million.

41 Mr Ayik agreed to provide the methylamphetamine on credit. The appellant was to pay the purchase price after he had received and on-sold the drugs. While the appellant was negotiating with Mr Ayik, Mr Zhang and Mr Ozan were making arrangements for the completion of the transaction. These arrangements included the purchase by Mr Ozan in Sydney, under a false name, of another car.

42 On 11 February 2010, Mr Ozan met with Mr Zhang. They concealed almost 5kg of methylamphetamine in the car's spare tyre. It was divided into five quantities with each quantity weighing about 1 kg. Each quantity was placed in a plastic bag and vacuum sealed.

43 On 12 February 2010, Mr Ozan drove the car to Toll Transport in Sydney and arranged for Toll to transport the vehicle to Perth. The car departed Sydney for Perth on 15 February 2010.

44 On 16 February 2010, police intercepted the car while it was at Toll Transport's depot in Adelaide. The police removed the methylamphetamine from the spare tyre and replaced it with rock salt. Subsequent analysis of the drugs revealed they weighed 4.983 kg and had a purity ranging from 53% to 69%.

45 On 18 February 2010, the appellant flew to Sydney. Some of his associates were in Sydney with him including Mr Tanevski.

46 On 23 February 2010, Mr Ayik told the appellant, in a coded communication by mobile telephone, that the car with the methylamphetamine would arrive in Perth by the end of the week. Also, on 23 February 2010, the appellant met with Mr Ayik to confirm the final arrangements for the transaction.

47 On 25 February 2010, Mr Ozan flew to Perth under a false name. He collected the car from Toll Transport's depot near the airport. At that time the appellant was arranging with Mr Zhang, in coded communications by mobile telephone, for Mr Zhang's representative in Perth to deliver the car to the appellant's representative.

48 On 25 February 2010, Mr Ozan collected the car and, on Mr Zhang's instructions, drove it to a car park on Guildford Road in Bayswater. He then travelled by taxi to a bus stop near the Charles Hotel where he met Mr Zhang's representative, Mr Bi. Mr Ozan delivered the car keys to Mr Bi, who travelled to the car park on Guildford Road and took possession of the car.

49 In the meantime, the appellant made arrangements with Mr Zhang for the car to be delivered to the Dog Swamp Shopping Centre for collection by the appellant's representative.

50 On the afternoon of 25 February 2010, the appellant met on two occasions with Mr Tanevski and Mr Kitis and instructed them to collect the car from Mr Bi later that day. The appellant told them the methylamphetamine would be hidden in the car's spare tyre.

51 On 25 February 2010 at about 6.00 pm, Mr Bi, in accordance with Mr Zhang's instructions, drove the car to the car park at the Dog Swamp Shopping Centre. Some time before 6.00 pm on that day, Mr Tanevski, in accordance with the appellant's instructions, drove to Mr Kitis' house. Mr Tanevski then drove with Mr Kitis to the shopping centre to meet Mr Bi. During this journey the appellant sent instructions to Mr Tanevski by text messages on a mobile telephone. On arrival at the shopping centre, Mr Tanevski remained in his vehicle in the car park while Mr Kitis, in accordance with the appellant's instructions, met Mr Bi and took possession of the keys to the car they thought contained the methylamphetamine.

52 Mr Bi was arrested by the police a short time later. At about the time of the handover of the car he thought contained the methylamphetamine, the appellant was driving in and around the car park of the Dog Swamp Shopping Centre. He was monitoring developments. Mr Kitis, acting on the appellant's instructions, drove the car they thought contained the drugs to Mr Kitis' brother's house in Stirling. Mr Tanevski followed in his vehicle.

53 When Mr Kitis and Mr Tanevski arrived at the house of Mr Kitis' brother, Mr Kitis obtained the keys to a shed on the property. Mr Tanevski and Mr Kitis removed the spare tyre from the car and hid it in the shed, pending further instructions from the appellant. Shortly after, police arrived and searched the property of Mr Kitis' brother. They found the spare tyre.

54 On 25 February 2010, the appellant was arrested and charged.

55 The trial judge found that the total value of the methylamphetamine in the Perth market at the time of seizure was in the vicinity of $2.49 million. However, his Honour was not satisfied beyond reasonable doubt that the appellant's intention was to sell the drugs in one-ounce lots and, by that means, obtain $2.49 million for them. On the basis of the purchase price the appellant had agreed to pay for the drugs and expert evidence from a police officer, his Honour was satisfied beyond reasonable doubt that the appellant intended to sell the drugs for an amount considerably in excess of $1.5 million.