A Penrose man on a good behaviour bond for child pornography matters was found with explicit images of children on his mobile phone, Wollongong Local Court has heard.
Andrew John Morgan, 45, is accused of not reporting a change of address to police - a condition of his good-behaviour bond - and of being in possession of pornographic images of children younger than 10.
He was stopped by police while driving in Berkeley at 3am on January 9. After he handed over his licence, officers discovered that he had allegedly failed to report a change of address.
They asked to inspect his phone, to which he replied "Yeah, here you go, have a look", police will allege.
After allegedly finding a screen-saver image of a child who appeared to be under the age of 14, the officers opened a folder they claim contained sexually explicit images of children under 10.
Mr Morgan told police he had downloaded the images from the internet for his own use and they were not to be distributed, the court heard.
Police searched his home but found no computers or further material.
Mr Morgan was arrested on January 11 and charged with possession of child pornography and failing to comply with reporting obligations.
Opposing bail, police prosecutor Anna Comer said Mr Morgan was on a district court good-behaviour bond for two similar offences involving possession of child pornography.
She told the court he appeared to think there was nothing wrong with having the images as long as he didn't distribute them.
Ms Comer said Mr Morgan was likely to reoffend if given bail and should remain in custody for the community's protection.
Defence solicitor Angela Melouney, acting for Mr Morgan, said she anticipated issues with the police case and her client strongly denied failing to report his address - he had reported it while at the station on another matter.
Ms Melouney told the court police had had the phone for three days before deciding to arrest Mr Morgan.
She described the set of facts as "strange" - containing allegations but lacking in detail.
Registrar Cally D'arcy granted Mr Morgan conditional bail, ordering him to report daily to police, reside at a Penrose address and forfeit $1000 if he failed to comply.
He will reappear in Wollongong Local Court on January 15.