A trio accused of holding four workers hostage at a western Sydney brothel have been denied bail, with two of them alleged to have connections to a notorious street gang.
A day after Thursday's dramatic arrest by heavily armed specialist police, Wasim Asaad, 36, Kanj Nayef Kanj, 40, and Mohammad Issa, 45, fronted Liverpool Local Court.
Kanj allegedly made threats to the brothel workers during the siege, the court heard, while Issa "took charge" of the hostages.
When police entered the building Asaad was found cowering in a toilet cubical, the court heard.
The five-hour siege at Men's Paradise in Liverpool prompted a heavy response, with police sending negotiators and tactical officers wearing black military-style equipment and carrying carbines.
Kanj's lawyer Elias Tabchouri said his client was asleep when police arrived and immediately called the owner of Men's Paradise.
"He's a friend," Kanj yelled from the witness box.
The men looked dishevelled after a night in custody at the police station only a few hundred metres from the brothel.
Blood stains were visible on Kanj's white T-shirt, which he was wearing when arrested.
He and Issa unsuccessfully applied for bail, despite their lawyers offering conditions such as curfews and regular reporting to police.
Issa's lawyer offered a $500 surety and argued his client's "involvement would be minimal compared to his co-accused".
But the court found there was an unacceptable risk the men would reoffend, fail to appear at future court dates and could interfere with witnesses.
The prosecutor, who opposed bail, said Issa and Kanj had "live" connections to the notorious Brother 4 Life street gang, and police had "serious concerns" Kanj has access to guns.
Magistrate Sharon Holdsworth said Kanj was a danger to the community while Issa had a history of violence.
The crown argued they had a strong case against the men, with plenty of witnesses and CCTV footage.
Mr Tabchouri agreed Kanj posed some risks but attacked the police's version of events as being like a "fanciful plot" from a movie.
"It wouldn't be the first controversial thing that happened at a brothel but it's not a criminal offence," he told the court.
Outside the court, Mr Tabchouri told reporters his client would fight the charges and denied he had links to any criminal gangs.
Earlier on Friday, Asaad, who didn't apply for bail, was formally refused release, with his lawyer calling the police operation "overkill".
The three men will remain behind bars until November 26 when they're due to appear before Campbelltown Local Court.
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