Duo’s $500k tobacco smuggling racket exposed

Two men caught smuggling 320kg of tobacco had been doing it for five years and had $500,000 cash to show for it, a court has heard.

Two men driven by greed ducked $400,000 in import duties – and amassed $500,000 in cash – by smuggling hundreds of kilos of overseas tobacco into the country, a court has heard.

On Thursday, Commonwealth prosecutors told the District Court jail was the only appropriate penalty for the duo, whose identities are suppressed.

John Clover, prosecuting, said the pair were caught in 2020 with more than 320kg of chewing and other tobacco that had been snuck into the country, concealed inside a shipping container full of household items.

However he said that shipment, which they sold for $10 a pouch, was merely the duo’s 50th illicit delivery since 2015 – and their ongoing criminal enterprise had been extremely lucrative.

“The total cost to them of importing that container was $35,000 and the duty paid was $1350,” he said.

“The container held at least 321.34kg of tobacco, and the duty owed on that was at least $420,000... there was also $500,000 cash located at one of the men’s homes.

The two men ducked $400,000 in import duties – and amassed $500,000 in cash. Picture: Generic

“We say it’s reasonable to suspect that cash was the proceeds of earlier sales of tobacco of the same type, and that greed is an apt description for the offending here.”

The men pleaded guilty to counts of illegally importing and possessing tobacco, as well as possession cash that is the proceeds of crime.

They now face a maximum three-year jail term, as well as fines of several thousand dollars.

On Thursday, Mr Clover acknowledged the duo’s guilty pleas encompassed only the tobacco found by Australian Border Force, and the cash seized by Australian Federal Police, in April 2020.

However, he said the court could and should take into account the long-term nature of their ongoing offending, which was proved through several tracts of evidence.

“ABF has records that show (the men) received 50 shipments between 2015 and 2020, and that 25 of those came from the same exporter that sent the April 2020 container,” he said.

“Text messages as far back as 2015 discuss tobacco brands and prices, and messages were sent in 2016 to the exporter (and about) paying their invoices.

“Upon his arrest, (one of the men) told ABF they sold each packet for between $8 and $10.”

Judge Simon Stretton remanded the men on continuing bail for sentencing on a date to be set.