Multimillion-dollar alcohol and customs scam foiled
Two alleged bootleggers have been arrested after a police swoop seized pallets of booze, gold, jewels, luxury cars and nearly $1 million cash across Melbourne and Sydney. SEE THE PICTURES
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Two men have been arrested over a $28 million alcohol smuggling plot.
Officers from the Australian Federal Police, Australian Border Force and the Australian Taxation Office raided properties across Melbourne and Sydney on Wednesday.
A large amount of alcohol and almost $1 million in cash was seized during the raids.
Officers also seized designer watches, jewellery, gold coins and luxury cars believed to have been obtained through the fraudulent activity.
A number of businesses are suspected of illicitly importing, smuggling and exporting alcohol, and making fraudulent claims under the Duty Drawback Scheme.
The scheme allows exporters to obtain a refund of customs duty paid on certain goods.
Police believe individuals and businesses have been involved in a criminal group that has defrauded the Australian Government and taxpayers of tens of millions of dollars in evaded duty since September this year.
The investigation is ongoing but it is suspected the total amount defrauded could be more than several hundred million dollars.
ABF Commissioner Michael Outram said Operation Cabestro was launched following a review of the Duty Drawback Scheme.
“The individuals allegedly involved in this scam have not only been defrauding the Commonwealth of significant revenue, but also undercutting legitimate businesses involved in the alcohol trade, and ripping off consumers in the process,” Mr Outram said.
The ABF worked closely with the AFP and the ATO to target the groups involved in the alleged deception.
AFP Acting Commander Paul Hopkins confirmed the AFP arrested two men, along with executing 15 search warrants on properties across Sydney and Melbourne on Wednesday, with one warrant to be executed today.
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“These search warrants were conducted at both residential and commercial properties across both cities throughout the day, with a number of items seized on behalf of the ABF,” Mr Hopkins said.
“This joint operation is another demonstration of the benefits of our strong collaborative partnership with our border protection authorities.
“We would like to commend all officers involved in this investigation for their work.”
The AFP led Criminal Assets Confiscation Taskforce (CACT) has also obtained restraining orders covering property valued at around $19 million dollars.
ATO Deputy Commissioner Will Day said: “The ATO is committed to combating illicit alcohol activities and ensuring there is a level playing field for businesses who do the right thing.”