An Iraqi-born Australian man from north-western Victoria has been released on bail after being charged for his alleged involvement in a major people smuggling syndicate operating from Iraq to Australia.

The Australian Federal Police (AFP) said it searched properties in Adelaide and Mildura and seized a number of documents and computers last October as part of Operation Sovereign Borders.

Abbas Hussein Ali Allami, 37, of Mildura was arrested on Thursday morning and charged with the offence of aggravated people smuggling.

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He was charged with helping an Iraqi family of six, including four girls between the ages of one and eight, travel from Indonesia to Australia.

The family was prepared to pay $US15,000 for the man’s services, but when he failed to get them on a boat they went to someone else and eventually arrived in Australia in December 2013.

In court the man was described as a “second-tier” offender who was part of the syndicate, rather than the kingpin.

Ali Allami appeared in court with a bloodied nose and was wearing a singlet.

The court was told he was on a disability pension due to mental health problems, including depression.

He will return to court on September 10.

Outside the court police had to intervene when the man’s nephew was involved in a scuffle with an ABC cameraman.