Raja Arshad, 26, who lived there, and Shazad Majid,29, of Westbourne Grove, North Ormesby, had pleaded guilty to conspiracy to supply class A drugs between December 2006 and July last year. They were remanded in custody for sentence later.
Three more men and a woman deny conspiracy with them and also with unknown others, and Mr Makepace said that the issue was whether each of them was a party to it.
On trial are Arshad's father, Mohammed Arshad, 50, and his brother, Murthaza Arshad, 24, both of Oxford Road, his sister, Tabenda Kayani, 25, of Kensington Road, Middlesbrough, and Amin Younis, 31, of Brafferton Road, Middlesbrough.
Mr Makespeace said that some of the items in Oxford Road had the fingerprints of Younis. Raja and Murthaza Arshad both had beds in the attic. Murthaza Arshad was arrested in the attic, and he told officers that there was money in the bedroom.
a detective on foot patrol spotted a nervous woman on a street corner carry out a drug deal with a man in a car.Police then tailed the P-reg Mercedes to an address in Linthorpe, Middlesbrough, and a decision was taken to apply for a search warrant.
two hours later, officers raided a house in Oxford Road, Middlesbrough, where they walked in on a family scene of a couple and two young children.
But in the attic they found a bedroom containing a black suitcase which they were told held £2,000 business takings, but the true figure was £5,040 heavily stained with heroin. The attic also gave up £1m worth of heroin with a street value of nearly £2m, the biggest amount discovered in Middlesbrough, and also huge quantities of cocaine and crack cocaine.There were cutting agents used to dilute the drugs, and a vast amount of packaging material, plastic bags, brown paper and scales.
Nearby in Ayresome Street - at a disused shop and garage with a flat above - they found a drugs factory with more packaging, cutting agents and a blender coated with heroin.Peter Makepeace, prosecuting, told the jury about the Oxford Road police raid - he said: "They had every reason to believe that they were about to carry out a routine drug search and uncover some low level street dealer."
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