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Olympic Medalist Scott Miller

Scott Miller -- a swimmer who won medals in the 1996 Summer Olympics -- was arrested in his home country of Australia this week ... after officials accused him of running a drug ring that was "intent on delivering death and misery."

Law enforcement made the announcement Down Under on Tuesday ... claiming Miller was a key cog in trying to spread over $1.5 million worth of methylamphetamine to regions in New South Wales.

Officials say the 45-year-old's drug dealings involved using candles to smuggle narcotics.

"For all intents and purposes, [they were] everyday candles," an investigator told media members.