When Detective Sergeant Roger Rogerson arrests Neddy Smith for attempted robbery, they come to an understanding and Neddy is released, going on to become the biggest heroin dealer in Australia. Neddy joins forces with Abo Henry and Warren Lanfranchi, but when Lanfranchi rips off a deal involving a mate of Rogerson's, Rogerson kills him, witnessed by Neddy. At the coronial inquest, Neddy denies seeing the killing and Rogerson gives him a "green light" to commit any crime - except killing a cop. Meanwhile, Detective Michael Drury busts heroin dealer Alan Williams, who seeks the help of Rogerson and hit-man Christopher Dale Flannery. Rogerson tries to bribe Drury to change his evidence against Williams, but Drury refuses. Rogerson, Williams and Flannery then plan Drury's murder, and he is shot down in his own home.