Former Olympic swimmer Scott Miller was in custody on Tuesday and charged with drug trafficking after Australian police seized methamphetamine valued at 2 million Australian dollars ($1.6 million) and accused him of directing a criminal syndicate.

In this July 24, 1996, file photo, Scott Miller of Australia shows his disappointment after finishing in silver medal place in the men's 100 meter butterfly final at the 1996 Summer Olympics in Atlanta. (Photo: AP)

Police arrested 45-year-old Miller and a 47-year-old man, who has not been named, on Tuesday at their Sydney homes after finding methylamphetamine concealed in eight candles in January, a police statement said.

Miller was the director of a criminal syndicate, Police Detective Superintendent John Watson alleged.

"Others, it will be alleged, are working under his instruction,” Watson said.

The two men were allegedly distributing drugs from Sydney that were bound for regional New South Wales state.

“This was not a small operation,” Watson said. “They were well organized and well financed.”

Miller won a silver medal in the 100-meter butterfly at the Atlanta Olympics in 1996. He was also a member of the Australian 4 x 100-meter medley relay team in Atlanta which won bronze.

He also won a world championship gold medal in the 100-meter butterfly at Rio de Janeiro in 1995.