Olympic silver medallist Nathan Baggaley was living in a shack in the scrub behind Byron Bay when police moved in.
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It was almost a year after his younger brother and another man were caught by border force officers in an alleged 600kg offshore cocaine bust in August 2018.
Police have accused Baggaley of aiding and abetting his younger brother Dru Baggaley, 36, and Anthony Trevor Draper, 54, who allegedly motored towards to the seaside town of Brunswick Heads with about $200 million worth of cocaine.
When they realised law enforcement were onto them, they allegedly hurled bags of the cocaine overboard.
Nathan Baggaley, a three-time world champion kayaker and Cleo magazine Bachelor of the Year finalist, now joins the pair behind bars.
Police raided his home, at Skinners Shoot in scrubland halfway between Byron and Bangalow, and his business on Thursday.
Officers seized cash, white powder believed to be an illicit substance and encrypted mobile phones, the Australian Border Force said.
He made no application for bail when he used crutches to hobble into the dock with a plaster cast on one of his legs at Brisbane Magistrates Court on Friday.
The matters were adjourned for a court mention on July 12.
According to court documents, police allege the drug trafficking occurred 201 nautical miles, or about 370km, offshore.
Australian Associated Press