Raid: Illicit Tobacco Taskforce members have targeted a Victoria-based criminal syndicate.
A prominent organised crime syndicate has been dealt a heavy blow by the multi-agency Illicit Tobacco Taskforce after months of sustained action aimed at strangling the group’s operations in Australia and offshore.
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Australian Border Force, Australian Taxation Office and Victoria Police said the syndicate, predominately based in Victoria, was heavily involved in the domestic cultivation, manufacture, importation, distribution and sale of illicit tobacco in Australia.
Warrants were recently executed at a Broadford property, the latest in a series of warrants and disruption activities undertaken by the taskforce against the syndicate over the past few months.
Huge industry: The World Health Organization estimates illegal tobacco accounts for one in every 10 cigarettes.
The enforcement actions have deprived the crime syndicate of an estimated $400 million.
In 2020 tobacco crops with an estimated street value of $20 million were seized from properties in Shepparton and Mooroopna, and in recent years other crops worth millions have been raided in Cobram, Undera and Gunbower.
Since July 2021, the ABF has also thwarted attempts to import more than 283 million cigarette sticks and over eight tonnes of loose leaf tobacco.
Wide ramifications: The Illicit Tobacco Taskforce says profits from illegal tobacco growing and distribution are funnelled into other criminal enterprises including illicit drugs.
ATO assistant commissioner Jade Hawkins welcomed the collaborative effort by all agencies involved in the disruption of the Australian operations of this transnational organised crime syndicate.
“Illicit tobacco growing operations are not run by small producers or farmers. They are run by organised crime syndicates who evade tax, steal water, disregard regulations and do whatever it takes to grow their crop,” he said.
“They use their profits to fund their lavish lifestyles and engage in criminal behaviour.”
Victoria Police Acting Commander Peter Brigham highlighted the detrimental impact illicit tobacco had on the community through the harm it funded.
“The sale of illicit tobacco and its links to further criminality, including activities of organised crime groups, can have a significant negative impact on communities and businesses. The profit of illicit tobacco is usually funnelled back to organised criminal syndicates that are involved in drug trafficking and money laundering.”
The World Health Organization estimates that illicit tobacco accounts for as much as one in every 10 cigarettes consumed globally.
International intelligence also shows that cigarettes are one of the most smuggled ‘legal’ products in the world, and cigarette smuggling is a form of transnational organised crime dominated by serious organised criminal groups.
“These significant seizures and disruptions illustrate how large the illicit tobacco problem is in Australia and globally,” ABF commander special investigations Greg Linsdell said.
“It also demonstrates the sophistication of these criminal groups and their ability to adapt and diversify their operations to ensure continuous supply.”
Anyone with information about the importation of illicit tobacco or cigarettes should contact Border Watch at abf.gov.au/borderwatch
If you suspect that illicit tobacco is being grown or manufactured in your community, you can confidentially report it to the ATO at www.ato.gov.au/tipoff or by calling 1800 060 062.
Anyone with information is urged to contact Crime Stoppers on 1800 333 000 or submit a confidential report at www.crimestoppersvic.com.au
