DRUG SUSPECT 'TIPPED OFF'

A PROMINENT Melbourne criminal lawyer has been accused in court of warning
the key suspect in a major National Crime Authority investigation he was
under surveillance for drug trafficking.

The NCA has alleged in Melbourne Magistrates' Court that Dennis Smith was
tipped off that his hotel was under surveillance after lawyer Brian Rolfe
showed him a brief of evidence about a separate drug case. NCA phone taps
show Mr Smith, now facing a series of drug charges after police raided the
Hollyford Hotel last December, rang a friend after meeting with Mr Rolfe
and said: "The pub's hot. As hot as mustard".

Mr Rolfe denied passing on any information from a police brief to Mr Smith.

Dennis William Smith, 55, of Strathmore, was arrested with others,
including Hollyford co-owner Kerry Joseph Ashford, 54, of Melbourne, and
friend Stephen William Collins, 47, of Roxburgh Park, after special
operations group police raided the hotel on December 23 last year.

An earlier court hearing was told the arrests followed a year-long NCA
investigation that included surveillance, undercover officers and phone
taps. Police alleged drugs were being dealt from the pub in Elizabeth St,
Carlton.

Det-Sgt Paul Lunt, of the NCA, has alleged during the trio's bail
application that Mr Smith learned of the investigation after meeting with
Mr Rolfe, his lawyer, on December 17.

According to Det-Sgt Lunt, Mr Rolfe had received a police brief about a
separate drug case, which contained information about the Hollyford
operation. "Smith visited Rolfe at his office and when he left he got on
the phone and described the context of that brief," Det-Sgt Lunt told the
court.

"The tone of the phone calls were that he (Smith) was going to go into
damage control."

The Herald Sun understands Mr Rolfe's alleged actions are to be referred to
Victoria Police for investigation.

Mr Smith, who is facing drug charges including counts of trafficking
amphetamines and ecstasy, and Mr Ashford and Mr Collins, who are facing
charges of conspiring to traffic amphetamines, are all seeking bail.

The NCA has strenuously objected to bail.

Det-Sgt Lunt alleged there was a strong chance the men might interfere with
witnesses and that they were likely to commit further offences, like armed
robbery, if necessary.

The NCA told the court it believed the men might flee the country because
of overseas connections and alleged access to false passports.

The court heard Mr Ashford has a wife in Thailand and a daughter who is a
travel agent.

It also heard Mr Smith, who suffers from cancer, still receives income from
a hotel in Manila and that he told an undercover policeman he had
"diplomats in his back pocket".

"This case does not deal with your run-of-the-mill street dealers," Det-Sgt
Lunt said.

Mr Rolfe, for Mr Smith and Mr Ashford, claimed the prosecution case was
based on thin evidence and innuendo.

He argued that while his clients had extensive criminal histories they had
never failed to report on bail, and for health reasons Mr Smith in
particular should be allowed to "recuperate and convalesce at his family
home".

"He tells me he's in constant pain ... and he cannot turn his mind to his
defence (while in jail)," Mr Rolfe told the court.

"His mind is besieged by the question of his health. This man and the
community would be far better served by having him treated by his own
oncologist. He is not going to get treatment (in jail). Humanity says he
must get (it) if he's going to survive."

Magistrate David McLennan will announce his decision on the bail
applications on Thursday.