Dylan Rutter failed to show cause why he should be released during a bail application in Tamworth Local Court on Friday morning.

The 31-year-old is the third person to be charged as part of Strike Force Kotzur – a secret police operation set-up by Oxley detectives last year to investigate the supply of illegal drugs in the Tamworth area.

Prominent Tamworth personal trainer Mark McDonald was refused bail in December accused of supplying a raft of different drugs in the Tamworth area including cocaine, ecstasy, methylamphetamine and steroids, while a woman – the second charged as part of the operation – will front court in February charged with drug possession.

Rutter was arrested shortly before 4pm on Thursday in Tamworth and charged with one count of supplying a prohibited drug that is not less than a commercial quantity.

Detectives will allege Rutter supplied 350 MDMA tablets between August 17 and midnight on December 8, last year, in Calala.

He was refused bail by police and spent the night in the cells before lodging a bail application in the out-of-sessions court hearing.

Rutter was not required to enter a plea to the charge which triggered a show cause hearing meaning he needed to show why his detention was not justified.

If convicted of the charge, Rutter faces a maximum of 20 years imprisonment.

According to court documents, a Legal Aid solicitor told the court Rutter was working full-time, was caring for family members, had no similar matters on his record, and had strong community ties.

But the court found there was no compelling submissions to show cause, it was a strong prosecution case and there was a likelihood of a custodial sentence, if found guilty.

Rutter was refused bail and transported to Tamworth Correctional Centre where he will remain until the case returns to court later this month.

“Strike Force Kotzur has been a long-running investigation by Oxley police and investigations are continuing with further arrests anticipated,” Oxley Chief Inspector Phil O’Reilly told The Leader on Friday.

“Three people, two men and a woman, have now been charged by investigators from Strike Force Kotzur.”