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Alleged Sydney heroin boss bailed

AAP logoAAP 30/07/2016 Rebekah Ison

An alleged heroin supply boss nabbed in an operation investigating fatal overdoses in inner Sydney has been released on bail.

Graham James Prior, 44, was arrested as he left a Surry Hills juice bar, where he allegedly supplied accused drug dealer Karla Maniskas with 11 grams of heroin on Friday.

Police say the mechanic, who was arrested with $5980 in a tobacco bag, has been supplying large quantities of drugs with disregard to the consequences.

This investigation was the result of a large number of overdoses, including some fatal overdoses in the Redfern and Waterloo areas, police prosecutor Ken Schneiders told the Parramatta Local Court on Saturday.

Police organised heroin to be bought from Maniskas, 43, over a six-week period as part of the controlled operation, which started in December.

They say the woman referred to getting heroin from the boss before then meeting with Prior, who also allegedly supplied more than seven grams earlier this month.

In applying for bail, Prior's barrister Michael Coroneos said doubts may be raised at trial about the trustworthiness of the woman's evidence, which the prosecution relies heavily upon.

The basis of the case will rely almost entirely upon Ms Maniskas, who is an unreliable witness, he said.

Magistrate Mal McPherson said $4800 found on Prior had allegedly been identified as the same money given to the woman in exchange for the 11 grams of heroin.

But he agreed with Mr Coroneos that there were holes in the prosecution's case and said police had not provided evidence the heroin allegedly supplied by Prior was the same heroin involved in the overdoses.

He granted bail to Prior, who would have faced at least 18 months in custody before trial, on the condition he continue to live with his parents in Fairfield and not go within 2km of the CBD, except to attend court.

He also imposed a $20,000 surety. Prior has been charged with two counts of supplying a prohibited drug and one of dealing with suspected proceeds of crime.

He is due to face Downing Centre Local Court in September.

Maniskas, who faces 10 drug charges, did not apply for bail on Saturday.

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