Cocaine catamaran trial: When did Craig Lembke know about $500,000 payment

Was it as early as September 30, 2017, six weeks before the yacht was raided on Lake Macquarie, when one of the drug syndicate members came to Mr Lembke's house and offered him the job?

Or was it in the hours after the catamaran and its illicit cargo had completed its journey to Lake Macquarie but before the police raids?

That is one of the key questions that a jury will have to resolve when determining the central issue in Mr Lembke's Newcastle District Court trial; whether or not the 49-year-old knew about the cocaine on board the 13-metre Skarabej.

Mr Lembke, of Mayfield East, and West Australian co-accused Daniel Percy, 36, have pleaded not guilty to importing a commercial quantity of cocaine.

A syndicate member, who is serving a jail term for his role in the drug importation plot, gave evidence for a second day on Thursday, telling the jury about a meeting he says he had with Mr Lembke at Mr Lembke's home on September 30, 2017.

Under questioning from Crown prosecutor Rob Ranken, the syndicate member, who cannot be identified, said at that meeting he asked Mr Lembke about his yacht delivery business and whether he was interested in bringing a vessel back to Australia from overseas.

The syndicate member said he knew about the illicit cargo that would be on board the catamaran but said he did not tell Mr Lembke about it or mention anything about drugs.

When Mr Ranken asked whether a fee was mentioned during that meeting, the syndicate member said specific amounts were not discussed.

But Mr Ranken took the syndicate member to a police statement he made in August, 2018, during which the syndicate member was asked by detectives if Mr Lembke inquired during that meeting about how much we was going to be paid.

"Yeah he did," the syndicate member told police in his statement. "The figure was between him and his mate and there was half a million to go and get the boat." When that excerpt from his statement was put to him in court on Thursday, the syndicate member responded: "Yeah, well that's when I told him [about the $500,000 fee] then".

The syndicate member told the jury on Wednesday that he incurred a massive gambling debt in Hong Kong, began trying to sell encrypted phones and then was told by a man known as "Black Prince" that he "needed to find somebody who could pilot a boat".

The trial, before Judge Jonathon Priestley, continues.

While you're with us, did you know Newcastle Herald offers breaking news alerts, daily email newsletters and more? Keep up to date with all the local news - sign up here.

IN NEWS TODAY: