A paranoid, drug-affected man found walking around the Wollongong CBD on Saturday morning armed with a large kitchen knife claimed he was being stalked by prostitutes he and a mate had hired the previous night.
Police were called to the intersection of Market and Church streets just after 10am after a witness reported seeing two men, one of whom was carrying a knife.
They arrived to discover Zachary Paul Lipton bearing the knife, which he dropped at the direction of police.
Lipton then allegedly told officers prostitutes he and his friend had hired the previous night had stolen unspecified items from them. Lipton said he believed the women were following them.
They allegedly began pointing at random people walking by saying they were friends of the prostitutes and were "going to get them".
The duo's paranoid behaviour continued when they returned to their accomodation with police.
A subsequent search of Lipton's bag inside the hotel room uncovered cannabis, mushrooms and a range of prescription medication including Valium, Ritalin, Panadeine Forte and Xanax.
Lipton was arrested and taken to Wollongong Police Station. In an interview with police, Lipton allegedly admitted to possessing the knife because he thought people were after him.
He also confessed to owning some of the drugs but claimed others had been left behind by the prostitutes.
Lipton applied for bail in Wollongong court on Sunday, with his lawyer saying he could live with his mother in Sydney and had been cooperative with police.
Registrar Peter Ritchie said the circumstances described in the facts were strange but agreed to grant Lipton bail provided he abide by a nighttime curfew and report to police three times a week.