MDMA criminals jailed in wake of “colossal” £44 million smuggling attempt

Defendants Danny Brown (aged 55), Stefan Baldauf (62), Tony Borg (45), Peter Murray (59), Philip Lawson (61) and Leon Reilly (50) were sentenced at Kingston-upon-Thames Crown Court on Tuesday 6 December 2022.

Between June 2019 and June 2020, Brown and Baldauf oversaw the operation to export the massive quantity of the drug concealed in the lead-lined arm of an excavator. The drugs had an estimated street value of £44 million if sold in Australia and posed a considerable risk to the health and well-being of the Australian public.

The UK-based conspirators arranged the shipment and the sale at auction of the excavator to the ultimate purchasers of the drugs in Australia. The gang used encrypted Encrochat mobile phones in order to pursue their crime.

Borg accepted delivery of the excavator into a warehouse in Grays, Essex. Murray then delivered the drugs to the same warehouse, whereupon Lawson later cut open the excavator arm and concealed 210 bags of MDMA inside. After the excavator arm was subsequently, the machine was moved to Southampton Docks and then shipped to Australia.

Unbeknown to the group, Australian custom authorities had discovered the drugs, removed them from the excavator and sent the machine on empty.

Reilly exchanged numerous encrypted Encrochat messages with Brown and Baldauf to update them on the machine’s progress and passage through Australia. Lawson then provided a detailed diagram showing where the MDMA was hidden and what tools would be needed to access the drugs.

Struggling to find the MDMA, the men in Australia responded with a picture of a hollow arm and told Brown the machine was empty. Brown and his accomplices provided even more detailed explanations of where the drugs were concealed, but soon realised they had been stolen.

Colossal quantity

Colette Moore, specialist prosecutor for the CPS, observed: “This case involved a colossal quantity of MDMA with an estimated street value of £44 million and which posed a huge risk to the health and well-being of the Australian public. Organised criminals manufacture ecstasy and other synthetic drugs in dangerous illicit factories. On that basis, each individual tablet potentially poses a risk to life for the individual using it.”

Moore continued: “Excellent work from the Australian authorities identified the drug concealment in the mechanical arm of an excavator arm and prevented its onward distribution. Collaborative international working with our Australian partners has resulted in the successful prosecution of the men who had exported these drugs to the Antipodes.”

The prosecution used the messages exchanged to demonstrate how many defendants were aware MDMA had been concealed in the excavator.

Demonstrating the use of EncroChat phones was crucial to proving the case against Brown and Baldauf. The prosecution was able to link Brown to his EncroChat phone through a picture of his French Bulldog named ‘Bob’, which he sent to one of the other gang members. The dog had the same number on his collar as that through which Brown had been sending messages.

Baldauf sent a photograph of his location which accidentally captured his own reflection on his way to meet Brown. This image was used to prove that he had control of the device.

In June 2020, Brown and Baldauf were arrested by National Crime Agency officers and further investigation led to the remaining defendants’ arrests in the following months.

Colette Moore concluded: “The use of encrypted EncroChat phones failed to prevent the organised criminals from being identified and prosecuted. In fact, the messages established, beyond any doubt, that these men were responsible for the drug export to Australia. The more they used the EncroChat phones, the deeper the incriminating hole they dug for themselves.”