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During 20, a police strikeforce Sombra gathered intelligence claiming that Ibrahim was allegedly extorting a number of bars and nightclubs in the Kings Cross and Darlinghurst area up to A,000 per week each, claiming a beneficial financial interest in club takings and allegedly applying standover tactics.

It was reported that police investigations were allegedly compromised by officers from the New South Wales Crime Commission when Ibrahim was informed that his Dover Heights home was bugged.

Ibrahim opened his first nightclub in Kings Cross, taking a 20% stake in a club then known as Tunnel Cabaret.

Ibrahim sold the club in 2001 and its name changed to EP1; with police unsuccessfully taking legal action to have the venue closed, alleging it was part of organised drug activities in Kings Cross.

In 2004, new owners relaunched the Earl Place club as Dragonfly Ibrahim has allegedly provided bank guarantees to various family members and holds property in his own name or in the name of companies associated with him.

Prosecutors said the pair had "discrete dealings involving large sums of money and a large volume of tobacco" that was transported across Sydney in trucks. Three other men accused of being involved in the syndicate did not apply for bail and one other man will make an application on Thursday.

Kings Cross identity John Ibrahim's son and girlfriend have both been granted bail after facing court following police raids in Sydney connected with an alleged international crime syndicate.

Sarah Budge, 27, faced Central Local Court this morning after being charged over the possession of a pistol while Daniel Taylor, 26, was charged with intending to use more than .25 million to import tobacco.

Ibrahim commenced legal action in the NSW Administrative Decisions Tribunal and sought access to the intelligence reports on him.

His application was refused and police never charged Ibrahim for the alleged offences.