Craig Costello was the final member of a group of four Teesside pals to be convicted of conspiracy to supply class A drugs in 2021
Kirstie McCrum and Esther Halligan
11:42, 04 Jan 2026Updated 12:37, 04 Jan 2026
Craig Costello(Image: Teesside Live)
The last member of a quartet of friends from Teesside, involved in an international drug ring, is set to have his assets seized. Craig Costello’s bank accounts swelled with illicit cash deposits and investments in cryptocurrency.
A proceeds of crime application has already resulted in the sale of his five-bedroom house. Quad bikes and several vehicles have been confiscated and liquidated.
Costello, along with business associates John ‘Winky’ Watson, Steven Beazley and Dave Wright, ran the Teesside branch of a worldwide drug ring between 2015 and 2016. They were operating under Stockton drug lord Jon Moorby, who, together with Merseyside gangster Lance Kennedy, oversaw the trafficking of drugs from Spain and Belgium into the UK.
Kennedy orchestrated an estimated £17m worth of cocaine imports into the country.
This intricate operation involved flying class A drugs across the Channel in chartered helicopters, from 2015 to 2016. Couriers transported the cocaine up to Merseyside, from Kent and then over to the north east, reports Teesside Live.
The four friends were all found guilty of conspiracy to supply class A drugs in 2021 – after Cleveland police placed them under surveillance to collect evidence.
Costello, aged 43, was not present in court to hear the jury’s verdict – the father-of-four had absconded to the Middle East. He was later apprehended, reportedly while driving in Amsterdam, and extradited back to the UK to begin his nine year and seven month-long sentence in June 2022.
Financial sleuths allege that the drug dealer amassed £1.6m in illicit profits. In an attempt to reclaim the drug money, prosecutors have pinpointed a deposit of £16,815 into Costello’s bank account, which they believe is consistent with drug trafficking profit, along with an additional deposit of £3,175.
Investigators have tracked down £4,012.21 worth of Etherium Classic Cryptocurrency under Costello’s name, which court documents suggest originated from his drug sales. Costello’s residence on Chesterfield Drive in Marton was sold as it was identified as proceeds of crime while he was incarcerated.
Despite the father-of-four having served his sentence, the proceeds of crime application has been ongoing for over a year. Costello was released from HMP Kirklevington, near Yarm, in August on an electronic tag, under the 40% scheme.
The exact sum to be confiscated from Costello remains undecided due to the proceeds from the sale of Costello’s house not yet being finalised between him and his ex-partner, Victoria Costello, who initiated divorce proceedings after he was imprisoned.
Clockwise from top left Steven Beazley, John ‘Winky’ Watson, Craig Costello, David Wright
Documents from the proceeds of crime application reveal that the equity in the house amounts to £107,722.80. The outstanding mortgage owed to the Royal Bank of Scotland and a debt to the government agency Homes England were both settled with the cash from the sale.
The estranged couple appeared at Durham Crown Court last month, where prosecutor Steve McNally explained that Mrs Costello’s claim relates to money “she says she paid as part of the deposit” on the property when it was initially purchased. The CPS has suspended the former couple’s divorce proceedings until the financial matters are resolved.
The convicted drug trafficker has been determined to possess £137,577 in cash and assets available for confiscation. A judge will issue a confiscation order next year.
Costello’s former drug associates had their proceeds of crime applications concluded some time ago – John Watson, Steven Beazley and Dave Wright repaid less than £300,000 from a massive £4m profit.