RAIDS NET ONE OF OUR BIGGEST DRUG RINGS

The National Crime Authority has dismantled one of Australia's largest
heroin syndicates following raids in Sydney and Melbourne yesterday in
which 16 kilograms of heroin and a large amount of gold and cash were seized.

According to the Justice Minister, Senator Vanstone, and Herald sources, it
could be one of the country's most significant drug seizures.

Four men were arrested in Sydney and one woman in Melbourne in simultaneous
raids yesterday morning in which police seized $80,000 in cash, $250,000 in
gold bullion, as well as jewellery and firearms.

It is alleged that three of the men were arrested while selling 1.4
kilograms of heroin and that police later found 15 kilograms of the drug in
another house.

Senator Vanstone said: "I have been told that one of those involved has
been wanted by State and Federal authorities for many years and is seen as
a major player."

The raids, conducted by the National Crime Authority with the co-operation
of the NSW Crime Agency, followed an undercover operation lasting "six
months or so", sources said.

A former Sydney restaurant owner, Duncan Lam, 45, was arrested, along with
Miss Kim Loan Nguyen, 24, Ting Man Ngai, 26, Anthony Phu, 37, and Lawson
Chung, 29.

Following his arrest, Lam was interviewed by officers from the Australian
Federal Police and charged with being "knowingly concerned" with one of
Australia's largest heroin seizures, dating back to 1997.

In 1997 Lam was allegedly involved in the importation of 78 kilograms of
heroin, which had been concealed in pineapple tins shipped from southern
China to Sydney.

At the time it was the largest shipment of heroin ever discovered in NSW,
and resulted in Lam becoming one of the Federal police's most wanted.

In May 1997, Federal police tried to arrest Lam at an Ashfield restaurant
but he fled through a back door. It was believed he later left the country.

Lam came to Australia in 1976 from Hong Kong, became a citizen in 1981 and
had an interest in a modest Chinese restaurant at Kensington.

It is believed the National Crime Authority discovered that Lam had
returned to Sydney and was living on the North Shore, and that it have had
him under surveillance for several months.

Sources said it had "let the operation run" before arresting him.

The men are in custody and will appear in Central Local Court today, and
the woman will appear in court in Melbourne.