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Eric Ferdinand Fehlhaber walked free from Maroochydore Magistrates Court after prosecutor Todd Fuller QC said the crown was dropping its case.
The case against Joshua Carew was also dropped but he remains in custody for other offences.
The magistrate earlier dismissed the “partial confession” of Eric Ferdinand Fehlhaber after he was denied the chance to take legal advice without police officers overhearing.
Magistrate Annette Hennessy said the right to legal advice was a fundamental part of the legal system which had been breached in the case of the recorded interview with Eric Ferdinand Fehlhaber.
She said the police had treated been treating Fehlhaber extremely fairly but an oversight meant he was not given privacy when talking to a solicitor.
Without that private advice, he had suffered unfairness and his “partial confession” to being at the Yandina Hotel with two other Rebels was now excluded from the first ever trial of the controversial anti-association VLAD laws.