$400 million blow to a massive illegal tobacco syndicate in Victoria

Organised crime figures have been involved in a vast ring leasing rural land to illegally grow tobacco and importing huge amounts of cigarettes from overseas.

Investigators from the multi-agency task force at a Broadford property. Picture: Border Force

authorities say they have dealt a $400 million blow to a massive illegal tobacco syndicate operating from Victoria.

Powerful Middle Eastern organised crime figures have been involved in a vast ring leasing rural land to illegally grow tobacco and importing huge amounts of cigarettes from overseas.

Officers from the multi-agency Illicit Tobacco Taskforce recently moved on a property at Broadford, 90km north of Melbourne, where tobacco was being grown and processed on an industrial scale.

They had previously seized 285 million individual cigarettes and eight tonnes of loose leaf tobacco from those behind the Broadford operation.

A major illegal tobacco operation was uncovered at a Broadford property. Picture: David Hurley

285 individual cigarettes and eight tonnes of loose leaf tobacco have been seized previously. Picture: David Hurley

Those investigating the syndicates say:

• Illicit tobacco profit margins now outstrip returns for cocaine trafficking.

• Those involved are encouraged lighter penalties than for high-level drug offending.

• Syndicates invest profits in other activities like drug and gun trafficking.

• Those running the farms steal water and pollute rural areas without a care.

• Figures running the Broadford operation have links to overseas criminals who are the target of international law enforcement.

• Tobacco is now the world’s most smuggled illegal commodity.

ITTF acting Supt Sam Hardy said farms like the one at Broadford were, to the untrained observer, unrecognisable from other agricultural properties. Picture: David Hurley

Acting Supt Hardy said those in control had no environmental, workplace or hygiene standards. Picture: David Hurley

The ITTF is made up of investigators from the Australian Border Force, Australian Taxation Office and Victoria Police.

It has this year shut down multiple crops linked to MEOC players behind the Broadford cultivation and seized processing equipment, vehicles, cash and weapons.

Victoria Police officers have seized newly harvested tobacco in stops of vehicles leaving properties linked to the gang.

ITTF officers earlier this year hit another syndicate after a four-year inquiry into its activities.

Four men were arrested and charged over that operation.

Four men were arrested and charged in one operation. Picture: David Hurley

Investigators from the multi-agency task force at a Broadford property. Picture: David Hurley

The ITTF is made up of investigators from the Australian Border Force, Australian Taxation Office and Victoria Police.

It has this year shut down multiple crops linked to MEOC players behind the Broadford cultivation and seized processing equipment, vehicles, cash and weapons.

Victoria Police officers have seized newly harvested tobacco in stops of vehicles leaving properties linked to the gang.

ITTF officers earlier this year hit another syndicate after a four-year inquiry into its activities.

Four men were arrested and charged over that operation.

Farms like the one at Broadford were, to the untrained observer, unrecognisable from other agricultural properties cultivating things like corn, cabbage or kale.

They had no environmental, workplace or hygiene standards and would lease properties, squeeze out profits, then walk away.

Investigators at Broadford found mould and fungi in kilns where crops were dried, dodgy electrical wiring and buildings erected without permits.

But the profits, compared to those for drugs like cocaine, were an enormous lure.

ABF commander of special investigations Greg Linsdell said the enforcement action was crucial.

Mould and fungi was found around the crops. Picture: David Hurley

A Broadford property where a major illegal tobacco operation was uncovered. Picture: David Hurley

“These significant seizures and disruptions illustrate how large the illicit tobacco problem is in Australia and globally. It also demonstrates the sophistication of these criminal groups and their ability to adapt and diversify their operations to ensure continuous supply.

“The ITTF will continue to work closely with our domestic and international partners to disrupt the activities of the syndicates in Australia, and also pre-border, to prevent the illicit goods ever reaching our shores,” Commander Linsdell said.

ATO Assistant Commissioner Jade Hawkins said illicit tobacco farms were not the domain of small growers.

“They are run by organised crime syndicates who evade tax, steal water, disregard regulations and do whatever it takes to grow their crops,” she said.

Commander Peter Brigham of Victoria Police said the industry was a linchpin of crime groups.

“The profit of illicit tobacco is usually funnelled back to organised criminal syndicates that are involved in drug trafficking and money laundering,” Mr Brigham said.

There are no licences to grow tobacco in Australia.

Anyone with information on illegal tobacco operations can call Crime Stoppers on 1800 333 000 or visit their website.