Detectives from Strike Force Tuno 2 arrested the men at McMahons Point in Sydney on Monday in relation to the murder of 52-year-old Terry Falconer.

Both have been charged with conspiracy to murder and have been refused bail.

Head of the State Crime Command, acting assistant commissioner Rick Del Monte, said the operation involved more than 100 police including specialist units and the NSW Crime Commission.

“This is the culmination of some really good police work that began at the start of this decade,” he said.

“During a search of a house in Merewether [in Newcastle] overnight, police allege they found firearms including a machine-gun-style pistol, a large quantity of ammunition, items from NSW Police Force and NSW Ambulance Service uniforms and various means of disguise.” Mr Del Monte said Falconer had been on day release from Sydney’s Silverwater Jail on November 16, 2001 when he was allegedly abducted from an Ingleburn smash repairs by two men purporting to be detectives.

“He was then handcuffed and placed in a car which was driven by a person wearing clothing similar to a police uniform,” Mr Del Monte said.

“The two men who approached him initially were also in the vehicle.”

Falconer’s body was discovered on November 26, 2001, after two fishermen found a plastic bag on the banks of the Hastings River near Rocks Ferry Bridge, Wauchope.

Sean Waygood, 38, of Merewether Heights appeared in Hornsby Local Court yesterday charged with conspiracy to murder.

He also was charged with an unrelated attempted murder in Sydney’s Haymarket in 2002.

He had bail refused and will re-appear in Sydney Central Local Court on March 24.

Anthony Perish, 39, of no fixed address, appeared in Sydney Central Local Court charged with conspiracy to murder.

He was remanded in custody to re-appear in court on January 29.

Inquiries by Strike Force Tuno 2 are continuing.

Ddetectives appeal to anyone with further information to contact Crime Stoppers on 1800 333 000.