Disgraced Olympic swimmer Scott Miller has been remanded in prison charged with directing a group that imported $2 million worth of ice inside candles.
Miller, 45, was arrested on Tuesday at his Sydney home a month after crystal methylamphetamine was found concealed in eight candles.
With each candle containing 500 grams of the drug, police estimate the total haul could have sold on the streets for more than $2 million.
Police raided Miller's Rozelle home, a home in Balmain and a business in Bankstown at dawn on Tuesday.
One kilogram of heroin, worth $250,000, was allegedly found, along with $75,000 cash, mobile phones, documents, encrypted electronic devices and smaller amounts of prohibited drugs.
Wayne Allan Johnson, 47, was arrested at the Balmain home and was charged with being involved in the group Miller allegedly led and supplying a commercial quantity of a prohibited drug.
Miller was charged with directing a criminal group, two counts of supplying a commercial quantity of a prohibited drug and dealing in crime proceeds.
Both men did not apply for bail when their cases were mentioned in Newtown Local Court and adjourned until April 13.
"It's alleged (Miller is) the director of this particular syndicate ... Others, it will be alleged, are working under his instruction," Detective Superintendent John Watson told reporters on Tuesday.
The men were allegedly distributing drugs from Sydney that were bound for regional NSW. The eight candles were destined for Albury on the Victorian border.
"This was not a small operation," Supt Watson said.
"They were well-organised and well-financed. They were well set up and they were intent on delivering death and misery right through the state and in this case, Albury."
The concealment of the ice was sophisticated, with the drugs hidden in glass mouldings inside the candles. The ice had "very high purity", Supt Watson said.
Miller and Johnson have a longstanding relationship, police said.
Miller won silver and bronze at the 1996 Atlanta Olympics and was briefly married to Sydney model Charlotte Dawson.