Illegal tobacco crime syndicates smashed in NSW, Victoria, Qld

Illegal loose leaf tobacco farms in Australia and global smuggling shipments have been stopped, seizing and destroying 540 million cigarettes.

Exclusive: A string of criminal syndicates using the black market chop chop trade to fund criminal activities have been smashed by a posse of law enforcement agencies.

The Illicit Tobacco Taskforce has swooped on illegal loose leaf tobacco farms across the country and hit international smuggling shipments, seizing and destroying more than 264 tonnes of tobacco and 540 million cigarettes.

Collectively, they would have attracted duties of $840 million.

Recent illicit tobacco and cigarette seizures and arrest across Australia. Some of the seized cigarettes Picture: Australian Border Force

Twenty five operations have been sprung in the past three years since the strike team was established, resulting in dozens of charges, a string of jail terms and disruptions to organised crime groups trading in illicit tobacco.

Last week a 64-year-old NSW man was sentenced to 21 months jail to be served by way of intensive corrections order after pleading guilty to importing about 10 million cigarettes.

The taskforce discovered the cigarettes last year hidden in a sea cargo container destined for an address in Sydney.

The Australian Border Force (ABF) also busted a shipment at the NSW Container Examination Facility last week, of more than 9.5 million illicit cigarettes which was being smuggled into the state in an attempt to evade $10.4 million in taxes.

Recent illicit tobacco and cigarette seizures and arrest across Australia. X-ray image of first container (tobacco products on the right hand side). Picture: Australian Border Force

A 24-year-old Sydney was separately charged with importing tobacco after police stopped his car and found $27,785 cash, 17.75kg of tobacco and 14 boxes of cigarettes.

Police then raided his home in an inner city suburb of Chippendale. They seized a total of $109,275 cash and $20,000 worth of tobacco items. It will be alleged the man has been selling tobacco that was illegally imported into Australia.

In Victoria last month, the ABF discovered a single shipment of more than 2.8 million cigarette sticks which had been the subject of a smuggling attempt, which would have evaded $3.1 million.

In Queensland, the ABF uncovered more than 2.5 tonnes of loose leaf tobacco which was being smuggling into the state in an attempt to avoid $4 million in tax.

ABF Acting Deputy Commissioner, Phil Brezzo said the illicit tobacco market in Australia is large and lucrative, with profits of this black market trade often being used to fund other illegal activities.

“Cracking down on illicit tobacco and the groups that deal in it is a key focus for the ABF … and with our ITTF partners, we are disrupting this activity on multiple fronts,” Mr Brezzo said.

The task force team is led by the ABF with members from the Australian Taxation Office (ATO), Department of Home Affairs, and the Australian Criminal Intelligence Commission (ACIC) the financial watchdog AUSTRAC, and Commonwealth Director of

Public Prosecutions.

In March, there was a two-day blitz which disrupted three illicit tobacco growing operations across regional Victoria and New South Wales. Taskforce officers uncovered more than 100 acres of illicit tobacco with a total combined potential excise value of more than $84 million in the single biggest bust of illegal tobacco farms in Australia.

The Illicit Tobacco Taskforce (ITTF) has seized and destroyed eight acres of illegal tobacco crops and seedlings with a potential excise value of more than million from a property near Araluen in New South Wales. Picture: Supplied.

The crops and processed tobacco bales were located across the two states in Kyalite, NSW and Vinifera and Beverford in Victoria.

In May five people in NSW were charged as part of an ongoing investigation into a criminal syndicate allegedly involved in money laundering and the illegal importation of tobacco.

A Victorian man was also sentenced in May to two years jail after being caught with shipments of almost 1.7 million cigarettes.

Recent illicit tobacco and cigarette seizures and arrest across Australia. The contents of the first container Picture: Australian Border Force

He was running an illegal tobacco delivery racket using rental properties and third parties to distribute the tobacco throughout the community. He used identification documents, false phone numbers, and bank accounts to transfer money from illicit tobacco purchases offshore.

ATO Deputy Commissioner Will Day said “organised criminals view the illicit tobacco trade as low-risk and high-reward, but this simply isn’t the case.

“Removing illicit tobacco from crop to shop also creates a level playing field for small businesses.”

Recent illicit tobacco and cigarette seizures and arrest across Australia. Picture: Australian Border Force

The financial watchdog AUSTRAC has also played a major role in smashing the smuggling activities of the syndicates, as has the ACIC.

AUSTRAC Deputy CEO Intelligence John Moss said their financial intelligence helped law enforcement understand the money trail leading to the criminals and their assets – for confiscation.

The penalties for smuggling illicit tobacco are 10 years jail and a fine of up to five times the amount of duty evaded.

The maximum penalty for growing, selling or possessing chop chop in Australia is

10 years jail with a fine of up to $330,000.