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Bulgarelli was cut by the Raiders after it was alleged he was linked to a package containing ecstasy that was sent to the club.
The club then reported the matter to the AFP who have since launched an investigation.
The Raiders issued Bulgarelli with a termination notice alleging he had breached the club's code of conduct.
Raiders chief executive Simon Hawkins confirmed the club's actions.
"We've terminated his services, and obviously, yes, there's been a breach," Hawkins said.
"It's a disappointing thing but that's about all I can say at this stage."
A statement from Bulgarelli's management company Titan said the 28-year-old adamantly refutes the claims and the process of termination.
It said the matter was now in the hands of Bulgarelli's legal representatives and that he would not be commenting on the issue.
He was a surprise packet of the 2003 premiership and was named the Raiders' rookie of the year at age 27.
He notched up 17 games for the Raiders this season.