HUGE size of Australia’s illegal tobacco market exposed: ‘The public deserve to feel outraged’
Two men have been arrested in Victoria as police seized illicit tobacco worth $7.2million, luxury watches and cash during three raids.
Detectives, with support from Australian Border Force, searched two residential properties and a factory on Thursday morning.
Police arrested a 40-year-old man in Dallas, north of Melbourne, who is expected to be charged with possession of commercial quantity illicit tobacco and knowingly deal with the proceeds of crime.
During the arrest, officers seized illicit tobacco worth more than $11.9million, including over 475,400 cigarettes and 624kgs of loose leaf tobacco.
They also discovered approximately $80,000 cash and six watches, including a Breitling, Franck Mueller and four Rolex worth over $119,000 .
Criminal Proceeds Squad had started investigating after police became aware of a suspected crime syndicate operating at a Somerton food business in January.
More transactions were believed to have been made from a factory in Epping which stemmed from the same investigation.
Police allege those transactions were for the purpose of laundering money and that the business owner received a commission on each transaction.
Millions of dollars of illicit tobacco products were seized by Victoria Police from two Melbourne homes on Thursday, as well as luxury watches and cash (stock image)
A 34-year-old man was arrested after he was allegedly intercepted in a truck in Laverton North
Victoria Police said it is believed over $83million in cash has allegedly been laundered during transactions since May 2021.
Meanwhile, in a separate investigation by the illicit firearms squad, a 34-year-old man was arrested on Thursday at a home in the north Melbourne suburb of Campbellfield.
Police will allege the man was intercepted driving a truck in Laverton North which contained in excess of four million cigarettes, worth an estimated $5million.
Officers also allegedly seized more than $100,000 in cash from the Campbellfield home.
The man is expected to be charged with possession of commercial quantity illicit tobacco and knowingly deal with the proceeds of crime.
Detectives allege he visited the same Somerton business linked to the money laundering investigation and believe he has links to the organised crime syndicate involved in that matter.
Both investigations remain ongoing.
‘These investigations highlight the significant broader criminality that these serious and organised crime groups are engaged in,’ Detective Inspector Graham Banks of Taskforce Lunar said.
Police allege the truck contained over four million cigarettes worth an estimated $5million
‘We are never talking about just illicit tobacco – this offending consistently goes hand in hand with other serious and violent crime,’ he said.
‘That could be money laundering and illicit firearms, which we’ve seen in these investigations, or the arson attacks and extortions we’ve seen play out across the state.’
Det Insp Banks said the offending in both of the linked investigations is ‘not insignificant’ and ‘no doubt brought harm to the community’.
‘For example, this money is undoubtedly funding further violent crimes committed by those involved in this syndicate,’ he said.
‘I think the public deserve to feel outraged that these criminals are reaping millions of dollars at the cost of community safety.’
