Former army member arrested in Serbia had steel business that failed

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Former army member arrested in Serbia had steel business that failed

By Rachel Olding

A former army member arrested in Serbia in a major drugs investigation ran a business with his alleged co-accused that went bust with $11.5 million in debts and accusations of illegal conduct.

David Campbell, 48, was arrested along with Rohan Arnold, 44, and Tristan Waters, 34, in a dramatic raid on a five-star hotel in Belgrade on Tuesday. It followed a nine-month investigation into a shipment of 1.2 tonnes of cocaine that arrived in Sydney from Brazil, via China, concealed in steel tubes.

Fairfax Media has ascertained that Campbell is a long-time business associate of Arnold but the Canberra-based pair ran into major financial difficulties in 2012 when their local steel manufacturing business struggled to compete with cheap steel imported from China.

The company, Mass Steel, collapsed with $11.5 million in debts. A liquidator later said that Arnold's conduct as the company's director was so questionable that he should be investigated in the Federal Court and banned from directorships for five years. He was accused of trading while insolvent, engaging in "phoenix" activity and shifting assets to a network of his own companies to avoid paying tax and other liabilities like workers' entitlements. It appears that no action was taken in the Federal Court.

David Campbell, a business partner of Rohan Arnold, runs a steel manufacturing business and an international imports business.

David Campbell, a business partner of Rohan Arnold, runs a steel manufacturing business and an international imports business.Credit: Goulburn Post

Several business owners made desperate and repeated attempts to retrieve money from Arnold and Campbell, the company's general manager.

"They were always difficult to get money from," one former business associate told Fairfax Media, describing Arnold as energetic and charismatic but Campbell as "the most difficult p---- I have ever dealt with".

The pair went on to establish new businesses that imported Chinese steel and often changed the names of the businesses.

Campbell is listed as the managing director of an international import business, Product at Import Group (PIG), and steel manufacturer, Solutions 4 Steel.

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Three Australians were arrested in the foyer of a Belgrade hotel after 1.2 tonnes of cocaine was imported to Australia.

Three Australians were arrested in the foyer of a Belgrade hotel after 1.2 tonnes of cocaine was imported to Australia.Credit: Serbia Police

At PIG, Campbell travelled the world "seeking out new exciting products" for clients like solar panels and floor tiles and shipping them back to Australia, according to an online profile.

At Solutions 4 Steel, he manufactured steel in China and supplied it to high-profile construction projects including the Sydney International Airport, Royal North Shore Hospital's community health building, the University of Wollongong and two private schools on Sydney's north shore, Ravenswood School for Girls and Wenona.

Rohan Arnold, on left, is detained in the lobby of a Belgrade hotel.

Rohan Arnold, on left, is detained in the lobby of a Belgrade hotel.Credit: Antonio Ahel

An online profile says Campbell served in the Defence Force for 10 years and was a "seasoned world traveller" and keen sailor who was "working toward building a private empire that he can share with his family and friends".

Arnold was formerly the director and secretary of Solutions 4 Steel but resigned in 2014 and offloaded his shareholding, ASIC records show.

Rohan Arnold was accused of improper conduct when he ran a steel company with David Campbell.

Rohan Arnold was accused of improper conduct when he ran a steel company with David Campbell.Credit: radfordcollegians.com.au

Serbian authorities say Arnold, Campbell and Waters were arrested in Belgrade in the middle of a money transaction. A bag with around $1 million in foreign currency and a gun were seized.

Campbell has been held on suspicion of possessing the unauthorised gun, authorities said. Serbian media reported that Waters is suspected of buying the cocaine and Arnold is suspected of laundering money for Waters.

Police seized 1.28 tonnes of cocaine hidden in steel tubing on a container ship from China.

Police seized 1.28 tonnes of cocaine hidden in steel tubing on a container ship from China.Credit: Unknown

Waters, a former Canberra construction manager, was entangled in the Australian Tax Office fraud string last year and had been named in a 2016 court judgement as allegedly supplying 29 kilograms of methamphetamine that was moved from Canberra to Melbourne. Waters was not charged in the matter.

Arnold and Waters are being held in a detention facility in Padinska Skela in northern Belgrade while Serbian authorities await extradition requests from Australia.

David Campbell.

David Campbell.Credit: Linked In

Jaksa Pekovic, the Serbian lawyer representing the pair, told local media that they were "surprised" by their arrest and strongly denied involvement.

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Phone calls to employees of Campbell's businesses went unanswered on Saturday.

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