MDMA that was concealed. Photo: Supplied / NZ Police
The "mastermind" of a drug importation and syndication ring has been jailed for more than 11 years after supplying and sourcing about $11m worth of drugs into Christchurch from an overseas supplier codenamed "Pinnokkio".
Elliot James Mitchell, 29, and another man Patrick James Moore, 30, were sentenced in the Christchurch District Court on Wednesday by Judge Tony Zohrab after earlier pleading guilty.
Mitchell's offending related to importing cocaine, LSD, MDMA and ketamine into New Zealand as well as supplying the drugs. Moore's offending related to supplying MDMA, cocaine and Ketamine. The pair were also charged with participating in an organised criminal group.
The head of the group was Mitchell, who worked with Moore and allegedly another man who is still before the courts to distribute Class A, B and C drugs throughout Christchurch.
Court documents allege Mitchell's offending related to $11m worth of drugs.
Cash that was seized by NZ Police during Operation Munich. Photo: Supplied / NZ Police
Between 7 October, 2022 and 4 March, 2023, Mitchell, along with Moore and another man who is before the courts, allegedly worked together with other associates in the implementation and operation of a "controlled drug operation and distribution ring" in Christchurch.
The group utilised other people to receive the imported controlled drugs, paying them between $3000 and $7000 per importation.
The drugs came from an unknown source, suspected of being in Europe codenamed "Pinnokkio" who Mitchell was liaising with and arranging the importations through. Pinnokkio also advised and helped distribute encrypted cellphones to Mitchell and Moore.
Prior to the encrypted phones arriving, they would use end-to-end encrypted messaging applications to communicate with each other.
They used different forms of cryptocurrency to launder their funds and profits.
The drugs were disguised in various ways including in fragrances and medicine balls.
Fragrance bottles that were used to conceal drugs. Photo: Supplied / NZ Police
One of the attempted importations involved about $990,000 of MDMA and was intercepted by United Kingdom authorities in February 2023.
Later the following month, Mitchell and another man imported $900,000 worth of MDMA into Christchurch.
While talking about the importation with his overseas supplier, Mitchell said the quality of the packaging had improved.
MDMA tablets that were seized during Operation Munich. Photo: Supplied / NZ Police
The police investigation also revealed a discussion between Mitchell and another man about importing MDMA.
Mitchell asked him if he would have more packages delivered to his mother's address for money. The man agreed and said he would have taken the package for free and that he would happily accept $6000.
The man asked Mitchell if he had been getting margins from the King Cobras gang and said that $6000 was "life changing".
Between 5 November, 2022, and 28 March, 2023, Mitchell and Moore and the other defendant supplied at least 8kgs of MDMA to the wider Canterbury community, worth about $1.4m.
Among the usernames used from people to buy and sell the drugs were "Swineflu" "Pikachu" and "Oliver Twist".
Mitchell also admitted meeting with several money remitters in Christchurch, giving them cash he'd obtained from drug dealing to the remitters in exchange for cryptocurrency.
He would then send it on to the overseas supplier.
When confronted by police, Mitchell said he was not going to name any names or addresses. He said he imported the drugs, and they got dispersed. When asked where and who the drugs went to, he either couldn't remember or didn't want to say.
Moore said he only dealt with gram volumes of MDMA to support himself financially after coming off of ACC.
MDMA powder that was discovered during Operation Munich. Photo: Supplied / NZ Police
'Mastermind'
Crown prosecutor Penny Brown told the court on Wednesday that Mitchell was the "ringleader" and the "mastermind" of the drug importation and distribution ring.
"He was responsible for the importation and distribution of a staggering amount of MDMA - 47kgs, and then 13kgs of ketamine and also cocaine LSD," she said.
It was accepted the total amount of drugs imported and supplied by Mitchell had a street value of about $11m.
The quantity of drugs and the value was a "crucial measure" of his culpability and indicated the level of harm and also the level of "commercial gain".
"Mr Mitchell was solely motivated by making money and financial gain,' Brown said.
Brown said Mitchell came from a "loving and supporting" family.
"There is to the Crown's mind no nexus between what he's done and his upbringing."
In relation to Moore, Brown said he had played a leading role in the onward distribution of drugs, but a lesser role than Mitchell.
Brown said there had been mention in submissions about drug use, but the Crown did not accept this is the sort of case that was motivated by addiction that the courts regularly see.
Like Mitchell, Moore had enjoyed a "loving upbringing".
Mitchell's lawyer, Elizabeth Bulger told the court that while it was accepted he was the "ringleader" she did not agree with him being called the "mastermind".
"But to say a mastermind is to ignore that there was a whole other overseas operation going on which facilitates the passage of drugs into New Zealand which is where his involvement begins, she said.
"I think the Crown are over-egging their pudding a bit to call him the mastermind."
A cash counting machine that was seized by police during Operation Munich. Photo: Supplied / NZ Police
Bulger said Mitchell had no real reason for his offending, other than an opportunity came his way on a small scale to start with. Once he was in it was "very difficult to get out of it".
She said Mitchell had expressed early on that the arrest came as "something of a relief" as he could no remove himself from it.
Mitchell regretted the position he had put his family and friends in, Bulger said.
Moore's lawyer, Kerry Cook, said for Moore the offending was "enterprise serious in scale driven by addiction".
His life during the time of the offending was "marked by a chaotic existence" and self-isolation from family and pro-social friends as well as significant drug use.
Judge Zohrab told Mitchell his offending was "sophisticated".
"Your role was integral. And whether principal, ringleader, mastermind, all the same you were in control completely of the New Zealand operation."
From a starting point of 17 years, Judge Zohrab gave reductions for his guilty plea and other factors with a final sentence of 11 years and three months.
In relation to Moore, Judge Zohrab said the fact he was charged with only supplying and not importing was an "important distinction" compared to Mitchell.
However, Moore still played a "significant and leading role" in the ongoing distribution of the drugs.
He was part of the wider commercial-level enterprise and directed others involved in the operation. He did not have any links to the overseas exporters.
From a starting point of 10 years and six months, Judge Zohrab gave several discounts for his guilty plea, addiction and rehabilitation, as well as his remorse and time on electronically monitored bail.
He jailed Moore to five years and seven months.
Several other defendants have also pleaded guilty and will be sentenced.
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