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The Sunday Star-Times reported Sara Goff pleaded guilty to having four ecstasy tablets, but escaped without a criminal record.
Goff, 25 was one of more than 80 people caught in the police operation.
Mr Goff confirmed his daughter's arrest but told the newspaper he was confident she had never taken drugs.
Sara Goff was fined $500 but appealed her conviction and a district court judge found "she had committed the offence, but dismissed it without recording a conviction", a court official said.