OUT OF JAIL TO SERVE BAIL ABOARD LUXURY BOAT

The alleged kingpin in the celebrity drug ring has been released from
prison - and has been bailed to a luxury super yacht in Auckland's
Viaduct.

John Francis Waterworth, 56, is confined to a yacht called Absolut,
which is moored near the Princes Wharf apartment of its millionaire
owner Mark Granger.

Waterworth is on trial in September on charges of dealing in cocaine,
methamphetamine, ecstasy and cannabis. The high-profile case has
already snared a conviction for former sports star Marc Ellis.

The case has also affected the reputations of other celebrities caught
in its wake, including Lana Coc-Kroft, Brent Todd and Josh Kronfeld.

Jonathan Down, one of the Crown prosecutors on the case, confirmed
that Waterworth had been bailed to the super yacht.

"It's not a good look, I accept, but some of us have rich
friends."

Some of those friends, including Mr Granger, dropped in to visit
Waterworth last week.

The Herald on Sunday has learned that Waterworth was initially
released on bail to Clarks Beach on the Manukau Harbour.

He was staying with a family friend until a negative reaction in the
small community forced him out.

Mr Down said a problem arose with the address to which Waterworth had
initially been granted bail. "He had to move."

He had been living on Absolut for about two weeks and was confined to
staying on board.

Waterworth was also not allowed to own a mobile phone, and was not
considered a flight risk.

"There is nothing physically to stop any accused person on bail from
disappearing into the ether in one way or another," Mr Down said.

He said Waterworth was bailed after the court accepted he was having
difficulty preparing for his defence while on remand in Mt Eden prison.

"There were some disclosures of financial investigation by the police
which became almost impossible for him and his legal team to deal with
while he was in prison."

Mr Down said some of those "disclosures" included issues of
"unexplained income".

Detective Sergeant John Sowter, from the Auckland drug squad, said
police did not place an objection before the court when Waterworth
asked if he could live on the super yacht. "His last place fell through.

"I suppose it's a little bit bizarre. There was a request for us to
change addresses because he wasn't wanted at that [former] address."

Mr Sowter said as long as Waterworth abided by the terms of his bail
condition that he not leave the boat police would be satisfied. Asked
if those restrictions included walking on the gangway and wharf, where
the Herald on Sunday photographed him walking, Mr Sowter said there
would be some "leeway". He said it was "a difficult one" with a boat.

"I've got no problem if he wants to live on a super yacht. Some people
have rich friends I suppose. He mixes in some pretty high circles,
with some rich friends."

Waterworth was spotted leaving the yacht on several occasions,
including a wander down the wharf on Friday night to meet with friends.

The Herald on Sunday spoke to him on Friday at about 11pm when he was
70m down the wharf from the gangway entry.

As one of his friends shouted a warning to be careful of "Mr Plod", we
asked Waterworth what he was doing off his yacht.

Waterworth said he was meeting friends. "I have the swipe card. That's
why I was down there," he said, motioning towards a vehicle barrier
which takes swipe card access. On living on the yacht, he said: "I
realise it's unusual."

Visited at the yacht yesterday, Waterworth said a fresh court date had
been scheduled for July to challenge the search warrant used by police.

He also asked the Herald on Sunday not to report that he had left the
yacht before declining further comment.