Patrick Deery was arrested after consignments were recovered from his home and intercepted in the post.
The 59-year-old, of Keenaghan Road in Cookstown, is accused of having cannabis with intent to supply and further counts of attempted possession of the Class B drug on July 13 this year.
He was refused bail due to the risk of further offences.
Prosecutors said police searched his home after a package containing 4.3kg of herbal cannabis with a street value of £87,000 addressed to that property had been seized.
Inside the house officers recovered £32,000 worth of the drug, a large quantity of deal bags and weighing scales.
Police also intercepted further packages sent in the post to two other properties associated with Deery in the Magherafelt and Cookstown areas.
The hauls of cannabis seized in the operation had a total value of £294,000, the court heard.
During interviews Deery claimed that he owed money, but refused to provide any names.
Opposing bail, a Crown lawyer contended: “He played a role in this by facilitating the storage and supply of these drugs.”
Defence counsel Sean Mullan confirmed that Deery accepted acting as a “custodian” for only the consignment found in his home.
“He gave an account that he was holding those drugs for others, and the clear inference is that the individuals behind this are paramilitaries or paramilitary-connected,” the barrister said.
“The debt he had accrued was through gambling, some £8,500.”
Mr Mullan stressed his client denies knowing anything about any of the packages sent in the post.
Counsel argued that Deery had been exploited by others because he had no criminal profile.
He added: “His explanation is that paramilitaries came to him and they are individuals not to be messed with.”
Denying bail, however, Mr Justice Shaw ruled that Deery must remain in custody.