Police allege an inmate at Victoria's Barwon Prison was pretending to speak to his lawyer on the phone, when he was actually running an organised crime gang from jail.
George Marrogi, 33, has been charged with directing activities of a criminal organisation following the arrest of an alleged accomplice over the weekend.
Australian Federal Police [AFP] officers arrested Antonietta Mannella, 28, who faced Melbourne Magistrates Court on Saturday charged with importing 56 kilograms of methamphetamine and 13 kilograms of heroin.
An additional charge of attempting to import 400 kilograms of methamphetamine was laid against Ms Manella on Monday.
Police allege she was carrying out the orders of the Barwon Prison inmate.
She could face life in prison if convicted.
Two other people allegedly linked to the crime syndicate were arrested this morning after raids at Point Cook, Greenvale and Gladstone Park.
A 32-year-old Point Cook man is expected to be charged with drug trafficking, and a 43-year-old Gladstone Park man faces drug possession charges.
Mr Marrogi faces drug importation charges as well as the charge for directing a criminal organisation, which carries a jail term of 15 years.
AFP Assistant Commissioner Southern Command, Krissy Barrett, said the 400 kilograms of methamphetamine alone could have had a street value of $160 million.
"The AFP alleges this syndicate is responsible for numerous importations and will not hesitate to charge offenders when authorities have evidence to link them to previous shipments," she said.
Ms Manella was arrested at her home in Mickleham, while search warrants were also executed in Taylors Hill, Essendon and Greenvale on Saturday.
Police also seized a number of items including computers, mobile phones, a luxury Harley-Davidson motorcycle, a car and a jetski.
The alleged head of the gang, Mr Marrogi, appeared in court via video link from Barwon Prison.
"There has only been a handful of occasions where the AFP has charged an alleged offender with directing the activities of a criminal organisation,'' Assistant Commissioner Barrett said.
"The AFP alleges this man was ordering drug trafficking while he was in jail."
The pair will face court again in August.
Victoria Police said its Echo Taskforce had been investigating the organised crime syndicate since October 2020, and had made numerous arrests linked to the gang.
On April 23 police arrested two men, aged 31 and 27, after officers received information that members of the gang were planning to murder a number of people.
The 31-year-old man was charged with failing to disclose a PIN code, and the 27-year-old man was released without charge pending further enquiries.
Victoria Police said the Echo Taskforce had made 27 arrests linked to the gang's activities and seized more than $2 million, luxury vehicles, and illicit drugs.
Police said the investigations into the threats to kill and other activities of the gang remain ongoing.
