A man accused of being in an alleged drug plot with former crime fighter Mark Standen said "something else" would be in a rice shipment importation

A man accused of being in an alleged drug plot with former crime fighter Mark Standen said "something else" would be in a rice shipment importation, a court has been told.

The alleged co-conspirator's wife, Dianne Jalalaty, said she understood by "something else" her husband meant "drugs of some kind", which he said would be to repay a debt she understood to be $1 million.

She was giving evidence on Thursday at the NSW Supreme Court trial of Standen, 54, a former NSW Crime Commission assistant director.


He has pleaded not guilty to conspiring with drug trafficker James Kinch and food wholesaler Bakhos "Bill" Jalalaty, between early 2006 and June 2008, to import pseudoephedrine, used to make the drugs speed and ice.

He has also denied taking part in the supply of 300kg of the substance and conspiring to pervert the course of justice.

Ms Jalalaty, who met Standen when they both worked in the Australian Federal Police (AFP) force, has told the jury her husband kept $1 million in cash in a sports bag in the wardrobe.

He had told her a friend of Standen's would give him a loan to start a business and she came to know him by the nickname B52, a name allegedly used for Kinch.

On her husband's instructions, Ms Jalalaty said, she made payments into Standen's account using cash from the bag.

She also referred to more than $580,000 of the money being invested in a company, at her husband's initiation.

Crown prosecutor Tim Game SC asked if she had "an expectation that there would be very substantial profits associated with this investment?"

"That is what was indicated," Ms Jalalaty replied.

She agreed that while they received letters referring to "paper profits" they did not receive any money and that Standen became involved in trying to recover the money.

Her husband met B52 to tell him about the money lost from the investment and was told he had to repay the debt, which Ms Jalalaty understood to be the $1 million.

In July 2007, her husband told her he was to import some goods and that "in one of the shipments of rice there was going to be something else in the rice".

"He said that the debt had to be repaid and that the way that the debt was going to be repaid was sort of something in one of the shipments of rice," she said.

"Did you understand that something to be drugs of some kind?" Mr Game asked.

"Yes," she replied.