John Balatsos, 48, was arrest in May this year and remanded in custody after he was caught selling drugs to police informants inside popular North Wollongong nightspot Pepe’s on the Beach.

He was behind bars for more than four months until his release on bail on October 3.

In Wollongong District Court on Tuesday, Judge Andrew Haesler found Balatsos’ time on remand was adequate punishment for his crimes and he would not be sending the Mt Warrigal father-of-four back to jail.

“He has told the court today that his four months in custody brought home to him the impact of drug supply to young people in the community,” Judge Haesler said.

“I’m prepared to accept his remorse and deep shame is genuine.

“It’s clear that this period in his life was an aberration and that whatever he thought he was doing and in fact did, he stopped doing it well before his arrest.”

Court documents said Balatsos was nabbed by officers attached to Strike Force Nunki, which was set up in February to target illegal drug supply in the region.

Balatsos, a mechanical engineer by trade, was secretly recorded selling $300 worth of cocaine to undercover police on February 24 and March 2 at Pepe’s, and in the carpark opposite the North Wollongong Surf Club on March 21.

During the March 2 exchange, Balatsos told his undercover buyer that he’d obtained the drugs from a friend named ‘Pete’ who was part of the Hells Angels outlaw motorcycle club.

He also said he could source more product in the future, promising it would be “pretty solid stuff”.

Balatsos pleaded guilty to a single charge of ongoing drug supply in August.

In sentencing him on Tuesday, Judge Haesler noted Balatsos was the “lowest rung on the ladder” in terms of the drug supply chain.

”It’s an evil trade, but without people like Mr Balatsos that trade could not continue,” he said.

“People who deal in the pubs and clubs and on the street take all the risk, but it’s the people higher up the chain that get all the profits.”

Balatsos will be on parole for 14 months.